Purdue Finds Brazil Held $48-Per-Ton Corn Cost Edge Over US in 2024
Updated
Updated · Inside INdiana Business · Jun 10
Purdue Finds Brazil Held $48-Per-Ton Corn Cost Edge Over US in 2024
1 articles · Updated · Inside INdiana Business · Jun 10
Summary
$195 per metric ton in Iowa versus $147 in Mato Grosso in 2024 capped five straight years in which U.S. corn production costs exceeded Brazil's, Purdue researchers found.
Brazil's safrinha system—now nearly 80% of its corn output—lets farmers spread land and machinery costs across soybeans and corn, while U.S. growers carry heavier land, labor and overhead expenses.
Costs rose in both countries from 2020 to 2024, but Brazil stayed cheaper even after fertilizer-driven costs more than doubled from $69 to $147 per ton amid Russia-Ukraine war disruptions.
Falling grain prices exposed that gap: Iowa farms lost $21 per ton in 2024 after a $28 loss in 2023, versus losses of $12 and $14 for the Brazilian operation.
The study says U.S. farmers still hold a yield advantage of more than 2-to-1, but Brazil's lower-cost model and expanding export infrastructure are reshaping corn trade competition.
As Brazil's cheap corn wins globally, can U.S. farmers survive the soaring price of their own land?
One nation bets on massive yields, the other on low costs. Which agricultural superpower's model will break first?
Brazil’s Corn Cost Advantage at Risk: How the 2024 Fertilizer Price Spike and U.S. Export Surge Are Reshaping Global Markets
Overview
Brazil has long enjoyed a cost advantage in corn production over the U.S. thanks to its unique second-crop system, which lets farmers grow two crops a year and spread fixed costs like land and machinery across both harvests. This efficient model keeps Brazil’s production costs lower than those in the U.S. However, in 2024, a global surge in fertilizer prices threatens this edge by raising Brazil’s variable input costs. As a result, Brazil’s traditional cost advantage is under pressure, highlighting how changes in global input prices can quickly impact even the most efficient agricultural systems.