Brazil agriculture faces shifting crop areas and rising production costs

Brazilian agricultural sectors face diverse challenges and shifts for the upcoming 2026/2027 seasons. In Mato Grosso do Sul, soybean production costs are rising, averaging R$ 5,024.82 per hectare, with leaseholders facing even higher costs of approximately R$ 6,817.62 due to land rental expenses. High input costs, particularly fertilizers and pesticides, account for over 61% of total expenses.

In Rio Grande do Sul, rice cultivation area is projected to shrink by 3.4% due to credit constraints and climate uncertainty. Conversely, corn area in the state is expected to expand by 7.42% as farmers seek climate security through earlier planting. In Mato Grosso, corn production is set for record area expansion, reaching an estimated 7.48 million hectares, though productivity forecasts remain cautious due to potential El Niño impacts.

Regional quality issues are also emerging, such as in Western Paraná, where excessive rain and frost have compromised corn quality, leading to increased market premiums for high-quality grains. Meanwhile, in Southern Brazil, access to rural credit through programs like Plano Safra continues to support technological modernization and scale expansion for family farmers in the rice sector.