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

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