Weekly Farm Economics: Comparing Corn Production Direct Costs: United States vs. Brazil

Joana Colussi, Nick Paulson, Gary Schnitkey and Carl Zulauf

farmdoc daily, 2024, vol. 14, issue 01

Abstract: The direct costs associated with corn production in Mato Grosso have increased since 2016, consistent with the direct costs of corn production in Illinois (see farmdoc daily, September 26, 2023). Direct costs in Brazil surged to record levels for the 2022/2023 crop season, but projections indicate a decline for the 2023/2024 crop season, which is also in line with cost projections for Illinois. Our first article of 2024 compares trends in the direct costs associated with corn production in major agricultural regions of Brazil and the United States, the world's largest corn exporters. On a per acre basis, direct costs for corn have been higher in the United States relative to Brazil. However, adjusting for differences in corn yields by examining costs on a per bushel basis illustrates a cost advantage for Illinois producers that has been primarily driven by higher fertilizer costs in Mato Grosso.

Keywords: Agribusiness; Agricultural Finance; Crop Production/Industries; Production Economics (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:356893

DOI: 10.22004/ag.econ.356893

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