HONDURAS (ENAH), PRESENTADO POR EL MSC JULIO CESAR RAUDALES.

Mato Grosso produces a diverse set of agricultural products. Crop production is

dominated by soybeans, but also includes secondary crops such as maize, rice, sorghum, millet and other crops. The second maize crop, safrinha, has been the fastest growing component of crop production. Table 5.1 shows the changing level and composition of the soybean and maize output per farm in Mato Grosso from 2007- 2012 in terms of yield, hectares planted, grain price received by the farmer, and gross revenue per farm. Between 2007 and 2012, total production of soybean increased from 4,776 tons to 5,258 tons, averaging a 1% growth rate per year (Table 5.2). Total maize production increased from 2,811 tons to 4,140 tons, with an average annual growth rate of 13%. This rapid increase in maize production is a result of the maize area planted growing at an annual rate of 8% per year from 2007 to 2012. In the years 2011 and 2012, maize production actually outstrips soybean. As a result of the price of soybean (US$330/mt) being almost 2.5 times greater than maize (US$127/mt), soybean is the more lucrative crop with an average price growth rate of 7% compared to maize at -3% from 2007-2012.

The changing level and composition of soybean and maize as a succession cropping system is calculated by adding together the cost and returns of production. Grain yield and area planted have increased at an annual growth rate of 2% from 2007-2012, with total grain

production at a 6% average annual growth rate. Gross revenue per farm as a succession crop production increased at an average annual growth rate of 8%. These results are achieved by planting maize on an average 46% of soybean land from 2007-2012.

In assessing overall growth of the Mato Grosso soybean and maize succession cropping system results show that the greatest change in total production occurred from 2010 to 2011.

Soybean yield decreased by 4% from 2010 to 2011. Maize production increased by 37% as a result of a 23% growth rate in maize area planted. Total grain production had a growth rate of 17% from 2010 to 2011. In addition, gross revenue per farm as a succession crop system had the largest change from 2010 to 2011 with a 24% growth rate. This is due to the high price of soybean and maize received by the farmer because of the 2012 U.S. drought.

From 2007-2012, the sample Reference Project farmers plant on average 1,632 ha of soybean and 732 ha of maize, on an average 46% of total soybean land. As a result of Brazil’s tropical acidic soil the soybean and maize production systems require higher input rates and better input management, especially of fertilizers and machinery (Rada and Valdes 2012; Schenpf, Dohlman and Bolling 2001). Additionally tropical environments, have no freeze period, and have extended periods of high moisture and constant high temperatures. As a result these high temperatures, there significant pest pressure and therefore requires aggressive

management of harmful insects, weeds, and fungi. As a result fertilizer and pesticide cost per hectare are higher in soybean production compared to maize, US$221 and US$159 for soybean and US$183 and US$69 for maize, respectively (Table 5.3). Hence, yield outcomes in tropical settings result less from fertile soils and more from input management. As a succession crop, average expenditures on fertilizer and pesticide comprise 53% of the total cost of production, amounting to US$404 and US$228 per hectare respectively.

Producers report an average cost of land per hectare of US$125. Due to soybean being the larger crop, the cost per hectare of land averages US$30 more than maize. The price of land for soybean and maize is calculated by the cropland share percentage. For example, if a hectare of land costs US$100 and they plant 100% soybean and 100% maize on the hectare, in the soybean and maize cost of productions tables the cost of land will be US$50 for each.

Looking at seed expenditures, the average cost per hectare of maize seed is US$115; almost double the cost of soybean seed. It is important to note that soybean is a varietal crop, thus producers save and process some of their own grain for seed. Labor, diesel, and machinery costs per hectares are almost 1.50 times higher in the soybean production compared to the maize production, and are the lowest input cost per hectare categories.

Examining inputs as a whole, the average cost of aggregate inputs per hectare is US$130 or 19% more in soybean production, but gross revenue per hectare is about 1.50 times greater for soybeans. Thus producers correctly focus resources on the soybean crop, and limit inputs to the maize crop. This behavior is counter to that of producers in the U.S. that expend 28% more on the maize crop than soybean (Montesdeoca and Goldsmith, 2013)

On average the net return per hectare for soybean is US$401, an estimated 2.50 greater net return than maize, which averages US$160 per hectare. Maize as a low-valued crop receives a grain price of US$127 per metric ton, almost 40% of the soybean price received which

averages US$331 per metric ton. Maize yields relatively poorly in the tropical setting of Mato Grosso. Average maize yields for the Reference farmers is 40% more than their soybean yields; a ratio of 1.69:1. But the ratio in Illinois in the U.S. is 3.03:1. So Reference Project farmers face not only 35% lower maize prices, but also 50% lower maize yields compared with the United States.

Another way to view total grain production as a succession crop system is to look at production in terms of starch, protein, and oil output. Soybean is comprised of 30% starch, 36% protein, and 20% oil (Table 5.4). Maize is made up of 77% starch, 8% protein, and 4% oil (Anon n.d.). As a succession crop production, soybean and maize have produced on average 5.20 mt/ha of starch, 1.61 mt/ha of protein, and 0.87 mt/ha of oil from 2007-2012 (Table 5.5).

At the farm level, from 2007-2012 farms have produced as a succession crop system an average 4,701 metric tons of starch, 2,224 metric tons of protein, and 1,217 metric tons of oil. While growth of nutrient output per hectare from 2007-2012 appear relatively slow due to the slow growth in soybean and maize yield, they are higher at the farm level due to the increase in crop area planted.