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6 Months Ended

Jun. 30, 2021

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19.LEASE

19.1.Right of use

The rollforward is set forth below:

Lands and

Machines and

Ships and

farms

equipment’s

Buildings

boats

Vehicles

Total

Balance as of December 31, 2019

1,769,645

130,051

45,999

1,904,455

87

3,850,237

Additions/updates

858,085

45,624

90,616

95,768

2,675

1,092,768

Depreciation

(265,091)

(18,078)

(43,903)

(122,904)

(313)

(450,289)

Write-offs

(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

Additions/updates

443,211

450

32,436

(836)

4,412

479,673

Depreciation ⁽¹⁾

(145,589)

(7,202)

(27,166)

(62,843)

(3,256)

(246,056)

Write-offs

(5,982)

(5,982)

Balance as of June 30, 2021

2,585,683

78,513

96,254

1,807,658

3,605

4,571,713

1)	On June 30, 2021, the amount of R$145,558 related to land was reclassified to biological assets to compose the formation cost (R$118,286 as of June 30, 2020).

For the six-month period ended June 30, 2021, the Company is not committed to lease agreements not yet in force.

19.2. Lease liabilities

The balance of lease payables for the six-month period ended June 30, 2021, measured at present value and discounted by the respective discount rates are set forth below:


						Present value of
Nature of agreement		Average rate - % p.a. ⁽¹⁾		Maturity ⁽²⁾		liabilities
Lands and farms		11.89		April/2049		2,692,888
Machines and equipment’s		11.05		April/2035		168,348
Buildings		9.70		March/2031		84,663
Ships and boats		11.39		February/2039		2,417,826
Vehicles		10.04		October/2023		3,269
						5,366,994

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

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

The Company have renewed the subleasing transaction of 2 (two) ships, under the same conditions as before, for another period of 10 months and the amount of US$7,500 (equivalent to R$40,253 on the transaction date), only replacing the ships, due to the need for planned operational maintenance. The transaction has been effective since February 08, 2021 and May 11, 2021, for each of the ships.

The rollforward is set forth below:


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
Additions		479,673
Write-offs		(5,982)
Payments		(475,483)
Accrual of financial charges ⁽¹⁾		273,800
Exchange rate variation		(96,774)
Balance as of June 30, 2021		5,366,994

Current		593,691
Non-current		4,773,303

1)	On June 30, 2021, the amount of R$61,260 related to interest expenses on leased lands was capitalized to biological assets to compose the formation cost (R$37,040 as of June 30, 2020).

The maturity schedule of future payment not discounted to present value related to lease liabilities is disclosed in Note 4.2.

19.2.1. Amounts recognized in the statement of income for the period

The amounts recognized are set for the below:


		June 30,		June 30,
		2021		2020
Expenses relating to short-term assets		4,329		2,531
Expenses relating to low-value assets		2,950		6,428
		7,279		8,959