Sorriso is located in the northern part of Mato Grosso state and it is a major grain producer in Brazil. Its economy is strongly linked to intensive production of soy and corn, occupying a large part of its territory. It is also located in a transition region between the Cerrado and the Amazon Biomes. The total area of the municipality is 934.755 ha, of which 607.000 ha is dedicated to annual crops and 285.000ha of preserved native vegetation. The grains production in Sorriso corresponds to 3% of total national production, with more than 5.6million ton of grains (soy and corn) produced over only one crop season and more than 26 thousand tons of cotton.

The compact was initiated in May 2018, with the convening of stakeholders from the public sector and farmers representative; over the past of 4 months different stakeholders were invited to participate on the construction of the vision and targets for the territory, being them representative of the family agriculture farmers, NGO´s, local industries, banks, retailers and traders and in September of 2018 a Letter of Intentions were signed and a vision for the sustainable development of the territory was established. After the signature of the letter of intentions the recently formed local coalition started to build up the local targets in accordance with the vision and in April 2019 the Compact was formally signed through an MoU between the parties.