South America Calling

Cheaper Not To Plant Second-Crop Corn In Brazil?

Planting a second crop of corn after the current soybean crop is not economically viable in many parts of Brazil this season based on current prices, according to a report released by the Brazilian Agriculture Confederation (CNA).

Farmers in areas further away from ports and the meat industry in the south may be better off not double cropping soybeans this year, according to CNA analysis.

Across nearly all of Brazil, planting a single crop of soybeans was the best option last year, according to data compiled by the Center for Advanced Studies into Applied Economics (Cepea).

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In Sorriso, a top-producing district in center-north Mato Grosso, total average costs for double cropping were R$3,986.71 per hectare ($640.50 per acre), while average gross revenue was R$3,737.46 per hectare. In contrast, soybean planting alone cost an average of R$2,591.33 per hectare and resulted in average revenues of R$2,729.41.

And with corn prices still depressed, the outlook is little better next year.

However, analysts don't believe second-crop corn planting will fall dramatically in 2015.

The main reason is agronomic. It is now generally accepted that farmers should plant cover crops after soybeans. That being the case, farmers might as well plant corn as it is about the only second crop they stand a chance of making some money from.

However, farmers will likely reduce fertilizer applications and opt for less expensive seeds, which will make production much more reliant on good rainfall

(CZ)

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