Corn and Soybean Production Costs and Export Competitiveness in Argentina, Brazil, and the United States

USDA Economic Information Bulletin 154, June 2016

52 Pages Posted: 7 Jun 2017

See all articles by Birgit Meade

Birgit Meade

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Estefania Puricelli

Independent

William D. McBride

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Constanza Valdes

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Linwood Hoffman

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Linda Foreman

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Erik Dohlman

U.S. Department of Agriculture (USDA) – Economic Research Service (ERS)

Date Written: June 30, 2016

Abstract

This report explores export competitiveness for soybeans and corn in Argentina, Brazil, and the United States by comparing farm-level production costs, the cost of internal transportation and handling, and the cost of shipping to a common export destination. Prices received by farmers and average yields for each crop in each country are analyzed to calculate producer returns. Cost-of-production data are for 2010/11. To smooth the impact of weather and policy factors affecting yields and prices, 5-year average yields and prices (using 2010/11 as the midpoint) are incorporated into the comparison of per-bushel costs and returns. Findings of this study describe many of the factors that impact production and export competitiveness of the world’s leading corn and soybean exporters and how changes in these factors affect their competitive position.

Keywords: Cost of production, soybeans, corn, United States, Brazil, Argentina, export competitiveness

JEL Classification: Q10

Suggested Citation

Meade, Birgit and Puricelli, Estefania and McBride, William D. and Valdes, Constanza and Hoffman, Linwood and Foreman, Linda and Dohlman, Erik, Corn and Soybean Production Costs and Export Competitiveness in Argentina, Brazil, and the United States (June 30, 2016). USDA Economic Information Bulletin 154, June 2016, Available at SSRN: https://ssrn.com/abstract=2981675

Birgit Meade (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5159 (Phone)

Estefania Puricelli

Independent ( email )

William D. McBride

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5577 (Phone)

Constanza Valdes

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5225 (Phone)

Linwood Hoffman

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States

Linda Foreman

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States

Erik Dohlman

U.S. Department of Agriculture (USDA) – Economic Research Service (ERS) ( email )

1800 M Street, NW
Washington, DC 20036-5831
United States

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