Profitability of no-till grain production systems

Abstract

In general, the technical and agronomic benefits of no-till farming are widely known and well documented in the literature. However, studies focusing on the economics of no-tillage are scarce. In this context, the objective of this study is to determine whether no-till grain production systems that follow the principles of conservation agriculture are economically profitable by analyzing gross margins per hectare per year over six harvests for the agricultural years 1998/1999 to 2003/2004. In addition, a possible link between profitability and different no-till methods in terms of degree of soil turnover, crop rotation, and whether machinery used in agricultural operations is owned or rented is investigated. For this purpose, the multi-case analytical method was applied to thirteen grain producing family farms in Northern Paraná state, Brazil. Based on the results, two ranges of agricultural production variable costs and gross margins were identified. Higher gross margins were associated with longer use of the no-till system, ownership of machinery and equipment, specialization in grains, rotation of the commercial crops used, and higher variable costs. Lower gross margins were associated with outsourcing of sowing, small-scale cropping, and lack of crop rotation. It is concluded that family mechanized no-till systems of grain production in north Paraná are profitable. Key words: Economic analysis. Gross margin. No-till system. Conservation agriculture. Family farming. ResumoEm geral, os benefícios técnico-agronômicos do plantio direto são amplamente conhecidos e encontramse bem documentados na literatura, entretanto, estudos voltados aos aspectos econômicos do plantio direto são escassos. Nesse contexto, o objetivo deste estudo foi avaliar a rentabilidade de lavouras de grãos, sob plantio direto, por meio da análise das margens brutas por hectare ao ano, ao longo de seis safras, considerando os anos agrícolas de 1998/1999 a 2003/2004. Além disso, foi averiguada se há uma relação entre a rentabilidade e os diferentes tipos de plantio direto, no que diz respeito ao grau de revolvimento do solo, à realização de rotação de culturas e se o maquinário para a realização das operações agrícolas era próprio ou alugado. Para tanto, utilizou-se a metodologia de análise multicaso, considerando treze estabelecimentos agrícolas familiares, produtores de grãos, do Norte do Paraná, Brasil. Com base nos resultados foram identificados duas faixas de custos variáveis e de margens brutas da produção agrícola. Maiores margens brutas estiveram associadas ao maior tempo de utilização do sistema plantio direto, à posse de maquinário e equipamentos próprios, à especialização em grãos, à rotação de culturas comerciais utilizadas e aos maiores custos variáveis. Menores margens brutas

Profitability of soybean production models with diversified crops in the autumn–winter

“…We calculated revenue, gross margin, and profit according to the concepts presented in Fuentes-Llanillo et al (2018), andVolsi, Bordin, Higashi, andTelles (2020). To calculate gross revenue, we used the average yearly prices paid for each crop during each respective marketing period, which was obtained from a regional survey TA B L E 3 Economic indicators, equations, and description…”

No‐till System Participatory Quality Index in land management quality assessment in Brazil

“…The PQI is firmly rooted in scientific evidence, with the regional validation of technologies for the NTS (e.g., Casão Junior et al, 2012;Franchini et al, 2012), in order to satisfy the requirements of the NTS in the region under study, and was introduced into farming practices with the participation of the farmers themselves. The farmers participate by raising awareness of environmental preservation, and that the farmers have added value in society and can increase their income, and by participating in the establishment of indicators used in the methodology (Fuentes Llanillo et al, 2018). Community participation is promoted through collegial structures such as watersheds committees, who develop an environment of commitment by the stakeholders to the planned results.…”

Production and profitability of diversified agricultural systems

“…Crops for commercialization should have preferential consideration in crop rotation planning, mainly due to the commercial potential of the grains (Fuentes-Llanillo et al 2018). In some cases, the crop rotation should also include non-marketed crops whose purpose is soil recovery, such as cover crops (Calegari et al 2007).…”