Is Brazilian agriculture on the cerrado over-rated? The soil is poor and number of inputs is large.?

Question

I would think that the fertilizer would leach out of the sandy soils too easily with 60-80 inches of rain in some areas. Also considering the way the real has appreciated against the dollar and the increase in cost of land that is priced in sacks of soybeans would seem to imply this is a poor time to start in Brazil. Not to mention to increasing cost of fertilizer. Why not just farm in Kansas? You can still buy as much of SE Kansas for 700-800 dollars per acre as you want.

Answer 1

If one lives in Brazil and is a citizen and a farmer, one farms as best they can. Same said for a US citzen in the US. To move from the US to Brazil to start farming would allow for a greater power of spending after conversion/ exchange. To go from Brazil, though, to the US to farm would be a bit more difficult as one would have to have a greater amount of money to make the initial investment. Reclaimed forest land in Brazil is, more often than not, thin and this has been the reason the forests have been slashed and burnt as the reliance on fertilizer makes for a quick entry into farming, whereas nurtuing the soil with organics/ compost is time consuming with startups being slow and initially unproductive. To be over rated assuming that one is comparing two farming entities is justified only when one can take or leave/ invest in another country, most people not having that option for a whole lot of reasons. I suppose that if I had the money to invest I might consider land in Brazil if I thought I had access to inputs to make farming profitable in the long term. For those in Brazil, the allure of a stronger economy (and it really is not as stable, just appears so) and some better land (some of it is not all that good either) might get the thought of immigration to mind. It is, in the end, just a trade off from one set of problems to another. Best answer? If I had a farm in Kansas and wanted to really do something with investment, I might pick up land to work in Brazil and split my year, taking advantage of the flip flop of seasons when South American produce/ imports make BIG money in the US, and of course take advantage of leaving the snow behind. So, in answer, it is not over rated so much as it is on a completely different rating scale, like comparing February apples and September apples, being harvested on a different seasonal calendar.

Answer 2

I have not heard it is overrated for a number of reasons.

1. It has an ideal Soybean climate, a plant the produces its own nitrogen, and LOVES moisture. Producing 60 bushel soybean yields at 13 dollars a bushel.

2. Land is one forth the cost of land in the United States.

I have heard that the lack of strong central government really hurts farmers.  I also heard that hired men are VERY hard to find.  I would take the United States any day, but Brazil is viable option.

Answer 3

I would not call Brazilian agriculture over rated. They are doing an excellent job of farming in Brazil. If you are talking about investing in a farm in Brazil as opposed as farming in the US for a US citizen it would be more risky for sure. Us farmers who went to Brazil years ago have done great, but it is much harder and more expensive today. Farming in another country, other than your own, you are at the mercy of that government. It may be friendly and allow you to do well today, but could change at any time and kick you out without any of the investment or work that you put into it.