Brazil's soybean production costs are half that of the United States

Introduction: according to a recent survey conducted by the center for practical economic research (cepea) of the University of s ã o Paulo, Brazil's soybean competitiveness in the international market is still higher than that of the United States, because the cost of soybean production in Brazil is less than half of that in the United States, despite the huge subsidies given to soybean production in the United States The cost of soybean production per hectare in Brazil is $386, compared with $798 in the United States, according to the survey The mechanization degree of soybean production in the United States and Brazil is roughly the same, but the differences in labor, land, investment and liquidity interest rate are the main reasons for the differences in soybean production costs between the two countries In Brazil, the tax is only $37.17 per hectare, while in the United States it is as high as $286.64 Fixed production costs per hectare in Brazil are $440 lower than in the United States Non fixed production costs, such as chemical fertilizer, insecticide, etc., are 27.7 dollars lower in the United States than in Brazil The cost of transportation from the place of origin to the wharf is US $142.8 per ton in Brazil and US $292.45 per ton Brazil's average soybean production is also higher than that of the United States, which produces 3.1 tons per hectare, compared with 2.95 tons in the United States Therefore, in order to maintain its soybean competitiveness in the international market, the United States increased subsidies every year In 1998 / 1999, the United States subsidized soybean production by US $1.23 billion In 1999 / 2000, it increased to $2.33 billion At present, soybean and its by-products are the main export products of Brazil's agriculture and animal husbandry In the first 10 months of this year, the largest proportion of Brazil's agricultural and animal husbandry exports was soybean, soybean oil and soybean meal The export volume of such products alone reached US $4.796 billion, an increase of 27% year on year Brazil's soybean export ranks second in the world, second only to the United States.