Comparative analysis of input costs for soybean production in the State of Mato Grosso

Adriana Kunitake and Edson Pereira da Mota

Revista IPecege, 2016, vol. 2, issue 4

Abstract: Farmers are seeking greater profitability in their businesses; therefore, managerial analysis of production costs is a fundamental factor for their success. The acquisition of agricultural inputs has a significant impact on the production cost of soybean cultivation. It is necessary for farmers to verify the best payment terms according to their financial situation, thus guaranteeing profitability. To assist in this decision-making process, the objective was to compare four payment methods for agricultural inputs for soybean cultivation in the state of Mato Grosso during the 2014/2015 harvest. The payment methods were: barter transactions, bank financing (free and mandatory resources), and cash payment. Data were collected from averages in the state of Mato Grosso, and consultations were conducted with state retailers for a better understanding and information on barter transactions. Three different scenarios regarding the price of a sack of soybeans at harvest time were analyzed: scenario 1 – R$ 40.00 sc -1 , scenario 2 – R$ 50.00 sc -1 , and scenario 3 – R$ 60.00 sc -1 . In all three scenarios, the barter operation proved economically viable, especially in the first two, showing profitability of R$ 144.99 ha -1 and R$ 383.99 ha- 1 , respectively . It is concluded that the barter operation, which has been gaining prominence in the market, was the most attractive form of payment for soybean prices up to R$ 50.00 sc -1 . In situations of high prices (R$ 60.00 sc -1 ), cash payment with mandatory resources were the best options for the producer.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/386245/files/a ... itake%2Be%2BMota.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ipeceg:386245

Access Statistics for this article

More articles in Revista IPecege from University of Sao Paulo Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().