Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 171

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 171
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 is designed to supplement our expansion strategy, using our liquidity to make production investments in our principal agricultural activities. On the other hand, our leasing strategy provides us with an added level of flexibility in the share of each of our products in total production, providing for greater diversification.

The initial duration of the lease agreements is for two agricultural seasons on 60% of the area we lease and for three agricultural seasons on the remaining 11%, a model we aim to increase each year.

Leases of farms for production of crops consist in lease agreements with payments based on a fixed amount of quintals of grain per arable hectare or sharecropping agreements with payments in kind based on a percentage of the crops obtained or a fixed amount of tons of crops obtained or their equivalent value in Pesos. Leases of farmlands for cattle breeding consist in lease agreements with fixed payments based on a fixed amount of steer kilograms plus a variable sum, assuming there is a positive net margin of the farm.

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During the fiscal year 2025, we leased to third parties a total of 126 farms, covering 135,052 hectares, including 67,265 hectares through BrasilAgro. Out of the total leased area 118,638 hectares were assigned to agricultural production including double crops, and 10,896 hectares to cattle raising. The properties for agricultural production were leased, primarily, for a fixed price prior to harvest and only a small percentage consisted of sharecropping agreements.

The following table shows a breakdown of the number of hectares of leased land used for each of our principal production activities:

               2025              2024             2023              2022              2021     
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Crops            118,638           100,612           99,183           100,470           107,013
Cattle            10,896            11,596           13,821            12,590            12,635

Due to the rise in the price of land, we adopted a policy of not validating excessive prices and applying strict criteria upon adopting the decision to lease, selecting those lands with values that would ensure appropriate margins.

Results

The following table shows the Company’s results for fiscal year 2025 for Crops and Sugarcane activities, compared to the preceding fiscal year:

Crops

                                                                                                     FY 2025                      FY 2024            YoY var 2025 vs. 2024     
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                                                                                                  (in millions of ARS