Soy production in Brazil takes place on large estates owned by millionaire agribusinessmen, right? Actually, no.

An Embrapa survey reveals that 73% of soybean-producing agricultural establishments in Brazil are smallholdings.

Based on the latest Agricultural Census (2017), the study shows that this percentage of farms dedicated to oilseeds are smaller than 50 hectares and are run by farming families.

“Therefore, they are small family farmers who make a large part of their income from soybean cultivation,” explains the head of Embrapa Soja, Alexandre Nepomuceno.

According to him, the data shows that soya is a democratic crop, when you look at the size of the properties where the grain is sown.

“Therefore, it debunks the view that soy is only used by large landowners,” says Nepomuceno.

X-ray of soybean farming

The document Main Characteristics of Soybean Producing Agricultural Establishments in Brazil, written by Embrapa Soja researcher André Steffens Moraes, will be launched on June 26 and 27 in Londrina (PR). 

Moraes reveals that Brazil has 236,000 soybean-producing agricultural establishments, 83% of which (196,000 establishments) are in the southern region.

In Rio Grande do Sul, 81% of these properties have less than 50 hectares (77,000 properties).

In Paraná, 79% of soy-producing establishments are small properties (around 65,000 properties) and in Santa Catarina 87% of establishments have less than 50 hectares (around 15,000 properties).

The Midwest and Southeast regions account for approximately 4% of the total number of small soy-producing properties, or around 6,000 establishments each, and the North and Northeast regions for less than 1% each.

The South, Midwest and Southeast regions account for approximately 98% of all Brazilian soy-producing properties.

Before the floods in the south of the country, the National Supply Company's (Conab) estimate for the 2023/2024 soybean harvest was 40 million tons between Rio Grande do Sul (22 million) and Paraná (18 million).

The two southern states together (the second and third largest producers) normally produce around 30% of the soya produced in Brazil. “Most Brazilians are unaware that a large part of soybean production takes place on small farms, located mainly in the South,” says Moraes.

High technology

The survey, carried out by Moraes, also reveals that the intensive use of high technology adopted on large soybean farms is also present in small soybean producing establishments.

“Among the technological variables adopted on any soybean farm in Brazil are the use of high-quality inputs, such as transgenic seeds, fertilizers and correctives, as well as the use of machinery and grain warehouses, among others,” says Moraes.

According to the researcher, several factors can shape the distribution of the size of rural establishments in a region: historical and cultural factors, availability and access to credit and financing, climatic and weather conditions, access to technology and agricultural machinery, topography and soil quality, among others.

“An analysis of the size of rural establishments can have implications for the development of public policies, the allocation of resources and support programs aimed at small establishments and help identify potential interventions or strategies that can help these producers face their production challenges.”

Soybeans

In the 2022/2023 harvest, Brazil produced more than 150 million tons of soybeans, according to Conab, which keeps the country as the world leader in soybean production, followed by the United States and Argentina.

Soy is currently grown in 20 states and the Federal District and the main producing states are: Mato Grosso, Rio Grande do Sul, Paraná and Goiás.

“Soybean cultivation is directly responsible for approximately 6% of the national Gross Domestic Product (GDP) and around 25% of agribusiness GDP, as well as generating more than 2.2 million jobs,” says Nepomuceno. 

Source: Daniel Azevedo Duarte with information from Embrapa | Agrofy News