Diagnosis of rice crops in Rio Grande do Sul: 2004/2005 vs. 2014/2015 harvests

Mario Sergio de Lima Azeredo and Flavio Carlos Dalchiavon

Revista IPecege, 2017, vol. 3, issue 2

Abstract: This study evaluated the financial results and respective investment capacities of 1,217 irrigated rice fields, under a minimum tillage system, simultaneously participating in the 2004/05 and 2014/15 growing seasons in the state of Rio Grande do Sul. Sensitivity analysis was applied, considering different scenarios for the components of variable costs, fixed outlay costs, and productivity behavior. In the investment analysis, the 2004/05 growing season presented a negative Net Present Value (NPV) in all simulations, while the 2014/15 growing season, with variable costs and operating expenses below 10%, and without a reduction in productivity of 5% or more, presented a positive NPV. Consequently, the Internal Rate of Return (IRR) and the Discounted Payback Period (DPP) were favorable for the acquisition of a combine harvester, the object of analysis for the Net Cash Flow (NCF) of the proposed investment.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ipeceg:386262

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