Land Certification Yearly Report

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15 Million Acres Campaign Land Certification Yearly Report Grassland Regeneration and Sustainable Standard Season 2013-14

OVERVIEW Farmers and grassland professionals regenerating land This report shows results from Patagonian farmers that apply the Grassland Regeneration and Sustainable Standard (GRASS), as a part of the 6 Million Hectare Campaign (15 million acre). Each certified farm submitted evidence of the practice of adaptive management, which implies an iterative process of planning execution monitoring and replanning, towards regeneration objectives. The resulting GRASS database is the most important source of grassland adaptive management in South America. This learning community is supported by the commitment of farmers and grassland professionals to Patagonian Grassland regeneration. At present there are 29 trained and accredited professionals for grassland evaluation and 14 Holistic Management Field Professionals are the work force supporting farmers for GRASS compliance. Environmental Outcomes There are 97.510 hectares (240952 acres) that have been regenerated, passing from Restore to Full in this season. Long term monitoring Long term ground monitors allow the detection of changes in soil stability, vegetation cover and biodiversity. Currently we have 238 monitors installed, classed as 11 MARAS (INTA), 81 simplified MARAS and 146 photographic points. Land Audits 5 Land Audits have been performed this season, making a total of 11 land audits in two seasons. These are reported separately. Communication and Education activities During the 2013-14 season several communication and Education activities were performed as follows: o 8 Open Fieldays, with an average attendance of 50 people in each event. o 2 Two-day workshops for groups of 20 people o 1 Two day training on land monitoring (internal) for 10 people. o 1 Workshop on sustainable bussiness management for 25 people o 1 Holistic Management Course of 4 sessions x 4 days (160 hours) 10 people o 1 Workshop with a group of 15 students from Buenos Aires University and Wyoming University, with the visit of Professors William Lauenroth and Ingrid Burke. These activities imply communication and capacity building for more than 500 people.

SEASON STATISTICS 2013-14 At the end of the 2013-14 season, 57 farms complied the certification requirements of GRASS Standard, covering 1.256.242 hectares (2,76 M Acres) of Patagonian grasslands. Farms that qualified as FULL showed a Rangeland Health Index higher than 15 points (weighted average of the whole farm), in a score range from +100 to -100. Farms qualified as RESTORE where below 15 points. SUMMARY 2013-14 HECTARES UNIT FARMS RESTORE FULL TOTAL ESQUEL 7 79317 23000 102317 RIO GALLEGOS 16 436900 182448 619348 RIO NEGRO 11 77.386 69.580 146966 TRELEW 13 204.060 14.204 218264 TOTAL ARGENTINA 47 797663 289232 1086895 TOTAL CHILE 10 130.129 39.218 169347 TOTAL GRASS 57 927792 328450 1256242 11 farms started during the season, 7 of them where from Chile. 5 farms where cancelled due to non-compliance of the standard. 3 farms have observations and the certification process is on hold until the required information is available and verified. A complete list of certified farms is provided at Annex 1 CERIFIED FARMS 54 OBSERVED FARMS 3 NEW FARMS 11 CANCELLED FARMS 5 CERTIFIED AREA EVOLUTION Total certified area was similar to the previous season. This reflects a balance between incoming and cancelled farms in the program. The increase in the total area of FULL Sustainable farms is due to the inscription of 5 FULL class farms from Chile, and to the regeneration observed in 3 argentine farms.

TOTAL(HECTARES((GRASS(CERTIFIED( ( 1400000" 1200000" 1000000" HECTARES( 800000" 600000" 400000" 200000" 0" 2011/12" 2012/13" 2013/14" RESTORE" FULL" GRASS%Cer)fied%2013/14% Patagonia%!FULL! 26%!!RESTORE! 74%!

EFFECT OF PLANNING METHOD From a total population of 16 farms that qualified as FULL, 13 are Holistic Management practitioners and 3 apply Basic Planning. From the latter, one is only grazed in winter (recovers during the growing season) and 2 receive continuous grazing. Planing'Method'in'FULL'Sustainable'Farms' BASIC(PLANNING( 19%( HOLISTIC( MANAGEMENT( 81%( The farms with Average RHI above 15 points using continuous grazing were located in the Humid Magellan Steppe and the Fuegian Ecotone. This score has not been achieved with continuous grazing in environments where moisture distribution is more erratic (brittle environments). As many farms that qualify as FULL were in that condition before starting Holistic Management, checking the farms that have changed from RESTORE to FULL in the last 2 years would show a clearer idea of the effectiveness of planning procedures to regenerate land. From 7 farms that changed class in the last two seasons, 6 were Holistic Management practitioners.

Farms&that&changed&from&RESTORE& &to&full& BASIC( PLANNING( 14%( HOLISTIC( MANAGEMENT( 86%( Results from this season are coherent with the hypothesis that Holistic Management is capable to produce regeneration in all environments that GRASS is being certified. Continuous grazing only was effective in the more humid environments (Magellan Steppe and Fuegian Ecotone) and only when light stocking strategies were applied. 2013-14 GRADUATES Several farms increased their average RHI during the season, but 3 changed from RESTORE to FULL class. This implies an important change in site stability and ecosystem function. The total area that has come out from RESTORE Class during the year was 97.510 hectares.

SANTA NICOLASA FARM DATA Farm name: Santa Nicolasa Area: 69.580 ha Location: Chimpay, Rio Negro Owner: Solmat Agropecuaria SA Ecological Area Monte Yearly Rainfall: 305 mm Farm Manager: Joaquín Madero Planning method: Holística Number of cells 4 Number of paddocks 40 Stock: Sheep heads: 3000 Cattle Heads: 1600

Santa$Nicolasa$ 20$ 15$ 10$ RHI$Weighrd$Average$ 5$ 0$!5$ 2012$ 2013$ 2014$!10$!15$!20$ Year$

LAS MARGARITAS FARM DATA Farm name: Las Margaritas Area: 4.930 ha Location: Península de Valdes Owner: Néstor Elissalde Ecological Area Península de Valdes Yearly Rainfall: 200 mm Farm Manager: Néstor Elissalde Planning method: Holístico Number of cells 1 Number of paddocks 4 Stock: Sheep heads: 1300 Cattle Heads: 0

Las$Margaritas$ 18" 16" 14" RHI$Weighrd$Average$ 12" 10" 8" 6" 4" 2" 0" 2012" 2013" 2014" Year$

NUMANCIA FARM DATA Farm name: Numancia Area: 23.000 Location: Aldea Beleiro, Chubut Owner: Numancia SA. Ecological Area Subandean Grasslands Yearly Rainfall: 450 mm Farm Manager: Pablo V. Perez Planning method: Holística Number of cells 1 Number of paddocks 35 Stock: Sheep heads: 15000 Cattle Heads: 500

Numancia$ 25# 20# RHI$Weighed$Average$ 15# 10# 5# 0#!5# 2012# 2013# 2014# Year$

Anexo 1: Lista de predios que certificaron GRASS - Zafra 2013-14 Country UNIT COD OVIS Farm Name Ecol. Area Hectares Certificate N Argentina ESQUEL ES 01 El Cronometro PSA/SYM 16.686 Cert. 001/14 Argentina ESQUEL ES 02 La Paulina PSA 4.306 Cert. 002/14 Argentina ESQUEL ES 03 Numancia PSA 23.000 Cert. 003/14 Argentina ESQUEL ES 04 Chali Aike (Numancia) SYM 11.460 Cert. 004/14 Argentina ESQUEL ES 05 Cerro Blanco (Numancia) PSA 13.443 Cert. 005/14 Argentina ESQUEL ES 06 San Carlos PSA 22.700 Cert. 006/14 Argentina ESQUEL RN 06 Cerro Blanco del Comallo SYM 10.722 Cert. 007/14 SUBTOTAL 102317 Argentina RIOGALLEGOS RG 01 Cerro Bombero MCS 59.251 Cert. 008/14 Argentina RIOGALLEGOS RG 02 Chali Aike MNG 23.225 Cert.009/14 Argentina RIOGALLEGOS RG 03 Chikorik Aike MNG 39.491 Cert.010/14 Argentina RIOGALLEGOS RG 06 Librun MNG 30.000 Cert. 011/14 Argentina RIOGALLEGOS RG 07 Los Pozos EMS 30.000 Cert.012/14 Argentina RIOGALLEGOS RG 08 Monte Dinero EMH 26.192 Cert.013/14 Argentina RIOGALLEGOS RG 09 Morro Chico EMH/CA 26.025 Cert.014/14 Argentina RIOGALLEGOS RG 10 Namuncura EMH 22.135 Cert.015/14 Argentina RIOGALLEGOS RG 11 Rupai Pacha EMH/PSA 25.000 Cert.016/14 Argentina RIOGALLEGOS RG 13 Viamonte ECO 40.600 Cert.049/14 Argentina RIOGALLEGOS RG 15 San Jose MNG 37.496 Cert.017/14 Argentina RIOGALLEGOS RG 17 Bajada de los Orientales y Bi-Aike PSA 56.000 Cert.018/14 Argentina RIOGALLEGOS RG 19 Ganadera Río Santa Cruz MNG 88.869 Cert.019/14 Argentina RIOGALLEGOS RG 20 Santa Rosa MCS 15.399 Cert.020/14 Argentina RIOGALLEGOS RG 21 María Cristina MNG 62.138 Cert.021/14 Argentina RIOGALLEGOS RG 22 Los Vascos EMS/MNG 37.527 Cert.022/14 SUBTOTAL 619.348 Argentina RIO NEGRO RN 01 Anequen SYM 10.417 Cert.023/14 Argentina RIO NEGRO RN 04 Laguna las Vacas SYM 15.372 Cert.024/14 Argentina RIO NEGRO RN 08 Santa Nicolasa MAU 69.580 Cert.025/14 Argentina RIO NEGRO RN 09 La Trinidad SYM 5.000 Cert.026/14 Argentina RIO NEGRO RN 10 Calcatre SYM 10.089 Cert.027/14 Argentina RIO NEGRO RN 11 La Isabel MAU 10.000 Cert.028/14 Argentina RIO NEGRO RN 12 Las Aguadas PSA 834 Cert.029/14 Argentina RIO NEGRO RN 13 Cerro Campanario SYM 22.854 Cert.030/14 Argentina RIO NEGRO RN 14 El Turquito MCH 2.820 Cert.031/14 Argentina RIO NEGRO RN 15 La Masía MAU 4.996 Cert.032/14 Argentina RIO NEGRO RN 16 Fortín Chacabuco PSA 4.382 Pend. SUBTOTAL 156.344 Argentina TRELEW TR 01 Las Quebradas GSJ 38.988 Pend. Argentina TRELEW TR 04 Las Margaritas PVS 4.930 Cert.033/14 Argentina TRELEW TR 05 El Principio PVS 2.500 Cert.034/14 Argentina TRELEW TR 06 El Gualicho PVS 4.309 Cert.035/14 Argentina TRELEW TR 09 Tathuencay MCH 7.050 Cert.051/14 Argentina TRELEW TR 10 La Providencia MAU 6.435 Cert.050/14 Argentina TRELEW TR 11 La Rosa GSJ 50.000 Cert.036/14 Argentina TRELEW TR 12 Bella Vista TW PVS 2839 Cert.037/14 Argentina TRELEW TR 14 Las Mercedes GSJ 30.635 Cert.038/14 Argentina TRELEW TR 13 Miramar (Numancia) GSJ 9.300 Pend. Argentina TRELEW TR 18 Don Tatay MCH 14.871 Cert.052/14 Argentina TRELEW TR17 El Descenso MCH 35.586 Cert.053/14 Argentina TRELEW TR 19 Los Tamariscos MAU 10821 Cert.048/14 SUBTOTAL 218.264 Chile OVITEC CH 01 Punta Delgada (Chile) EMH 93.000 Cert. 039/14 Chile OVITEC CH 02 Armonia (Chile) EMH 8.000 Cert.040/14 Chile OVITEC CH 03 Nevada (Chile) EMH 2.500 Cert. 041/14 Chile OVITEC CH 04 Marindia EMH 9018 Cert. 042/14 Chile OVITEC CH 05 Cerro Campana CA/PSA 7160 Cert.043/14 Chile OVITEC CH 06 Lila EMH 945 Cert.054/14 Chile OVITEC CH 07 Panguilemu CA 1064 Cert.044/14 Chile OVITEC CH 08 Serena y otras EMH 21969 Cert.045/14 Chile OVITEC CH 09 Sección California EMH 7636 Cert.046/14 Chile OVITEC CH 08 Sección Timaukel CA 19000 Cert.047/14 SUBTOTAL 170.292