With the rise of the dollar in recent months, rural producers are suffering from rising production costs. A Rabobank study has shown an increase of over 10% in fertilizer and pesticide prices in the last 12 months. For potassium, for example, the high reaches 40%. The prices of urea and map, two of the main fertilizers for grain production, rose 15% in the same period. The price increase was also seen in some agricultural defenses, which increased between 10% and 20% in the quotation, a fact that contributed to a rise in the cost of production of the crop. According to the Mato Grosso Institute of Agricultural and Livestock Economics (Imea), the cost of soyabean production in the state closed March with an increase of 0.6% in relation to February. Still according to Imea, the pesticides in Mato Grosso also rose by 0.7% and among them, the fungicides showed the highest value. For both Rabobank and Imea, the price adjustments were mainly caused by the dollar’s rise in recent months. In Mato Grosso, the increase in taxes is also an aggravating factor for the costs of the producer.

Source: Canal Rural