Rising production costs worry rice growers for the next harvest

The production costs for rice farming expected for the 2021/2022 harvest have been a cause for concern for rice farmers in Rio Grande do Sul. According to the Rio Grandense Rice Institute (Irga), the value per bag closed at R$72,73, while per hectare, considering an average productivity of 7,95 thousand kilos per hectare, it was R$11,56 thousand. To do this, the producer needed to harvest 159,05 bags of 50 kilos per hectare.

According to the president of the Federation of Rice Growers Associations of Rio Grande do Sul (Federarroz), Alexandre Velho, the increase in inputs should cause this cost to rise in the next harvest, reaching the point where the producer will have to harvest at least 170 bags per hectare to cover expenses. "The break-even point that we were talking about of 160 bags per hectare, on average to cover costs, will certainly rise in the 2021/2022 harvest year and reach 170 bags, which worries us and brings us an obligation to rationalize areas and make this mandatory to look for alternatives in crop rotation such as, in addition to soybeans, livestock and corn”, he observes.

For the director, this growing evolution of production costs requires the intensification and rationalization of production areas. “The producer, as far as possible, has to reduce rice areas and increase crop rotation to seek greater productivity and consequently greater viability in rice farming.

Another concern, according to the president of Federarroz, is the water deficit for the next harvest. “We may not have enough water to plant the same area as in the previous period. Federarroz advises to rationalize areas and reduce rice crops to adjust supply and, consequently, have prices that at least cover production costs”, he emphasizes.