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Exporting Corn, Soybeans at Low Costs

Location is everything.

The Brazilian state of Paraná, with ports on the Atlantic coast, is the lowest-cost exporter of corn and soybeans for any section of Argentina, Brazil, and the U.S., the world’s leading exporters of those crops, say USDA economists. The advantage doesn’t go far for Brazil, however.

“The U.S. Heartland was the next lowest-cost exporter, but it has a much larger production capacity,” says USDA. Nearly three fourths of all U.S. corn and soybeans are grown in the Midwest. Paraná grows no more than a quarter of Brazil’s production.

“Lower shipping costs, including marketing, handling, and transporting, have helped the U.S. remain competitive with South America in international markets,” says the USDA report. The U.S. is the global leader in corn and soy exports, but its share is declining. Brazil topped the U.S. in corn exports in the marketing year following the devastating 2012 drought.

High yields also help U.S. competitiveness. The team of seven USDA economists calculated that U.S. farmers have the lowest cost-per-bushel to produce corn and the second-lowest cost, behind Brazil, in growing soybeans. The U.S. ranks at the bottom on cost-per-acre for corn or soybeans due to higher land and capital costs.

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Will you have enough on-farm storage for harvest?

I just want to see the responses
45% (25 votes)
38% (21 votes)
No, it’s going to be a bin-buster
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Maybe, depending on yields
5% (3 votes)
No, I am looking at new bins or temporary storage
4% (2 votes)
Total votes: 55
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