Wheat production costs in the Brazilian state Rio Grande do Sul are up 21.77% for this harvest

Posted by Guilherme Bezzarro


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Porto Alegre, March 1st, 2021 - This year's wheat harvest in Rio Grande do Sul will start with a 21.77% increase in production costs compared to 2020. This is what the first survey of the production costs of wheat culture for 2021 indicates. carried out by the Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro / RS). In the entity's assessment, the exchange ratio could be better if the values ​​did not increase beyond inflation.

According to FecoAgro / RS, to cover these expenses, including the purchase of inputs, maintenance of machinery and equipment, fuels, among others, it will be necessary to pay out for each hectare produced R$ 3,997.10, considering an average productivity of 60 bags per hectare . In other words, the cost for producing a bag is R$ 66.62 per bag of 50 kg and the producer will need to collect 52.96 bags to pay all the expenses of the crop. In the previous harvest, the cost was R$ 3,282.38, representing a cost per bag of R$ 54.71.

According to the economist at FecoAgro / RS, Tarcísio Minetto, among the items that make up the basic costs and that make up the crop, the inputs and the machines are the biggest, in addition to the increases in fuel in the last weeks that should also impact. “Despite the cost increases, the exchange ratio has improved with the increase in the price of grains in general. This scenario is favorable, but in the case of wheat it could be better because the costs have risen significantly and the exchange variation has also been passed on to these costs ”, he observes.

For the president of FecoAgro / RS, Paulo Pires, the increase in costs is a concern, as this reduces the result of the producer. The leader points out that, even with the increase in costs, the Technical Cooperative Network projects an increase of 10% in the wheat area in Rio Grande do Sul. This causes the planting of 1.02 million hectares this year. "We hope that there will be no climate problem and that we can have a record crop of wheat, which is very good for the producer and for the economy", he highlights.

The information is from AgroEffective.

This text was automatically translated from Portuguese.

By: Gabriel Nascimento | Safras & Mercado

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