Brazilian sugarcane production is converting from the traditional manual slash-and-burn to mechanized green cane harvest. The resulting sugarcane trash is mostly left on the field and plowed under at the end of a growth cycle, but it could also be recovered and used to increase the energy efficiency of ethanol. In this paper, we explore in a simulation study if straw recovery negatively impacts yields, fertilizer use, nutrient cycling, GHG emissions, and erosion; if there is an optimal recovery rate; and if different recovery rates are advisable for different soil types. We also compare the traditional slash-and-burn management to the green cane management system. Our results show that when performing straw recovery, trade-offs between different factors such as up to 1.3 t/ha lower yields or an up to 30 kg/ha higher demand for fertilizer N under low recovery rates, and higher erosion rates under high recovery rates have to be accepted. Most balanced would be a recovery rate of 40–60%, but the rate should also be adapted to soil type, with less recovery e.g. on soils prone to erosion, and to economic considerations. A comparison between green cane harvest without straw recovery and the traditional slash-and-burn method shows lower erosion rates and higher soil organic carbon contents, but also a higher fertilizer consumption due to nitrogen immobilization on areas under green cane management. Due to these trade-offs, one method cannot be unequivocally commended over the other.