Soybean-rice rotation in southern Brazil: economics advantages
DOI:
https://doi.org/10.55905/oelv21n9-083Keywords:
production cost, diversification, scope and portfolio gainsAbstract
The aim of this paper is to show a step-by-step method and empirical data for evaluating the economic advantages of introducing soybean in rotation with irrigated rice in the Brazilian southern lowlands by comparing two groups of farms: (01) farms with rice’s monoculture; (02) farms with soybean and rice rotation in the last 5 years. As a result, we found that the introduction of soybeans in the irrigated rice production system reduces the costs of soil preparation (41.45%), weed control costs (49.60%) and exposure to risk (27,61%). Furthermore, through rotation farms might improve the results of commercialization by 0,66% in comparison with monocultural farms. On the other hand, the rotation system increases fertilization costs (13.34%), reduces the gains with cattle grazing in the fallow period (0,97%) and the gross revenue per unit of area (5.62%). In sum the rotation is a viable production strategy, generating an increase of 9,68% in the financial return as compared to the traditional rice’s monocultural agricultural system.
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