I need to turn on my WayBack Machine to recall my first exposure to the production potential of agriculture in Brazil. It was 1993, and I was an analyst/economist for a global agricultural business. The question I worked to answer for the executive team was what a more free-trade oriented world would look like ten years in the future. NAFTA (North American Free Trade Agreement) and GATT (General Agreements on Tariffs and Trade) were being negotiated and the company wanted to understand how the reduction in trade barriers and tariffs would impact shifts in crop production. Imagine a time of political leaders advocating for lower tariffs and more free trade!

I developed an econometric model of global agricultural supply, demand, and trade that projected the world in 2003. One of my recollections of correct predictions was that soybean production would grow substantially in Brazil. While I got direction correct, I underestimated the magnitude of growth in soybean production. In 1990, Brazil produced about 550 million bushels soybeans. Brazil now produces more than 5.5 billion bushels soybeans per year, a 10X increase.

My latest dive into agriculture in Brazil was in February, when I had the opportunity to be a part of a travel group comprised of ISU students, farmers, and agribusiness folks to Brazil. We so much appreciate the hospitality of our many hosts and our group leader and friend, Julio Bravo. 

Three take-aways from the trip include the folowing.

1. Brazil is adding more value to more commodities.

It isn't just soybean production that's grown in Brazil. Crop land farmed has grown, and associated value-added industries surrounding those crops. Brazil is the number one global producer of soybeans, citrus, sugar, and coffee and near the top in beef chicken and cotton. 

My first trip to Brazil was in 2013. That year, I saw beginning construction of Brazil's first corn ethanol plant, a project put together by Summit Agricultural Group. Mathias Peters from FS updated our group on that first ethanol plant in Lucas do Rio Verde, Mato Grosso, the two others that they have since opened, as well as future expansion plan. Using contracted eucalyptus tree production, FS today produces the lowest carbon liquid fuel in the world.

In Parana state, we had the opportunity to meet Lar Cooperative and learn the story of how this organizatoin became a powershouse for broiler chicken production, now exporting branded chicken around the world.

The Franz family from Mano Julio showed us their crop, cattle, and swine production and explained their use of biodigesters to generate electricity for the swine operation and integration of cattle into crop rotations that include forages.

2. Alternative Inputs and Production Systems

Producing crops in subtropical climates affords farmers in Brazil the opportunity to plant two, sometimes even three, crops per year. That's the opportunity. The challenge compared to temperate climate production in the U.S. Midwest is soil fertility and pest pressure. No winter means no pest kill and more challenges around organic matter and soil health. So, we had the experience of meeting many interesting innovations in alternative input use and production systems.

Natter explained their leverage of an inland fish farm into branded biologicals. Rafael Simianato at Futurazy explained how creative crop rotations have enabled cattle production at costs approximately 40 percent lower than average costs in the U.S.

3. Agricultural Technologies Enabling Innovation

It was also interesting to see how agricultural technologies were being leveraged for greater efficiencies and improved business model design. GGF showed us how they remotely monitored and coordinated equipment use across a wide geography. Cooperativa Agropecuária Primavera discussed how the cooperative model was being used in creative ways to lower input purchase expenses and increase grain prices. Agro Baggio, a Deere dealership, demonstrated how augmented reality headsets enabled them to support in-field equipment repairs. 

It's always a delight to share perspectives with agriculturalists from Brazil. I know our group learned a lot and came away with a deeper appreciation for how quickly the agricultural production landscape is shifting globally.