LEASE (Tables)

12 Months Ended

Dec. 31, 2020


	Lands	Machines		Ships
	and	and		and
	Farms	Equipment’s	Buildings	boats	Vehicles	Total
Balance as of December 31, 2018	—	—	—	—	—	—
Initial adoption on January 1, 2019	1,762,943	143,685	41,570	1,408,640	1,012	3,357,850
Additions	260,982	1,529	39,794	612,022		914,327
Amortization (1)	(254,280)	(15,163)	(35,365)	(116,207)	(925)	(421,940)
Balance as of December 31, 2019	1,769,645	130,051	45,999	1,904,455	87	3,850,237
Additions	858,085	45,624	90,616	95,768	2,675	1,092,768
Amortization (1)	(265,091)	(18,078)	(43,903)	(122,904)	(313)	(450,289)
Write-offs (2)	(74,578)	(72,332)	(1,728)			(148,638)
Balance as of December 31, 2020	2,288,061	85,265	90,984	1,877,319	2,449	4,344,078

On December 31, 2020, the amount of R$263,613 (R$268,081 as of December 31, 2019) related to land was reclassified to biological assets to compose the formation cost.

2)Lands and Farms, write-off due to the incorporation of legal entities (note 1.1) and machines and equipment, write-off due to the cancellation of contracts.

Schedule of present value of lease liabilities

The balance of lease payables for the year ended December 31, 2020, measured at present value and discounted by the respective discount rates are set forth below:


	Average rate - %			Present value of
Nature of agreement	p.a. (1)		Maturity (2)	liabilities
Lands and farms		11.45	July 2048	2,361,538
Machines and Equipment’s		10.62	July 2032	189,061
Buildings		9.80	December 2030	81,144
Ships and boats		11.39	February 2039	2,557,824
Vehicles		10.04	October 2023	2,193
				5,191,760

To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements.

Refers to the original maturities of the agreements and, therefore, do not consider eventual renewal clause.

Summary of changes in lease liabilities


Balance as of December 31, 2018		—
Initial adoption on January 1, 2019		3,428,897
Additions		914,327
Payments		(646,487)
Accrual of financial charges		275,404
Exchange rate variation		11,929
Balance as of December 31, 2019		3,984,070
Additions		1,092,768
Write-offs		(148,638)
Payments		(824,245)
Accrual of financial charges (1)		486,286
Exchange rate variation		601,519
Balance as of December 31, 2020		5,191,760

Current		620,177
Non-current		4,571,583

On December 31, 2020, the amount of R$88,540 related to interest expenses on leased lands was capitalized to biological assets to compose the formation cost (R$50,795 as of December 31, 2019).

Schedule of expenses recognised in profit or loss

In the year ended December 31, 2020, and 2019 are set for the below:


	December 31, 2020	December 31, 2019
Expenses relating to short-term assets	7,365	37,007
Expenses relating to low-value assets	12,182	14,349
	19,547	51,356