New USDA research finds Brazilian growers often benefit from lower production costs, but U.S. farmers maintain important advantages in yields, operating efficiency, and returns.
A new study from the USDA's Economic Research Service underscores the growing competition between American and Brazilian crop producers, offering a detailed look at how production costs shape the global corn and soybean marketplace.
The research comes at a time when Brazil and the United States dominate world grain exports. Together, the two countries supplied nearly 83 percent of global soybean exports and 58 percent of corn exports during the 2025/26 marketing year, making production efficiency a critical factor in determining long-term competitiveness.
According to the report, Brazil has emerged as a major challenger to U.S. dominance over the past two decades. Expanded use of genetically engineered seed technology, widespread adoption of double-cropping systems, and strong farmer returns have helped fuel substantial growth in Brazilian grain production and exports.
The study compared production costs in the U.S. Heartland and Brazil's Mato Grosso region, one of the world's most important soybean and second-crop corn producing areas. Researchers also examined national-level data from both countries using official government surveys and cost reporting programs.
One of the report's most significant findings is that Brazilian farmers generally face lower total production costs per acre than their American counterparts. For soybeans, total production costs averaged $558.97 per acre in Brazil, compared to $656.16 per acre in the United States. For corn, the gap was even larger, with Mato Grosso averaging $420.57 per acre versus $951.82 per acre in the U.S. Heartland.
Researchers attributed much of Brazil's cost advantage to lower land costs and extensive use of double cropping. Growing two crops on the same land within a single year allows fixed expenses to be spread across more production, improving overall cost efficiency.
American Strengths
However, the report also highlights several strengths for U.S. agriculture.
American corn yields are nearly double those achieved in Brazil, helping offset higher per-acre production expenses and reducing costs on a per-bushel basis in some categories. The study found that total U.S. corn costs per bushel are higher than those in Mato Grosso but are similar to Brazil's national average.
For soybean production, U.S. farmers demonstrated lower operating costs per acre and per bushel than Brazilian growers, although total costs remained higher because of overhead expenses such as land.
The research also sheds light on important differences in input costs. In Mato Grosso, fertilizers account for roughly 35 percent of operating expenses, while chemicals represent 34 percent. In comparison, fertilizer and chemical costs each account for about 23 percent and 22 percent, respectively, of operating costs in the U.S. Heartland. Seed costs, however, make up a larger share of operating expenses for American producers.
Agronomic differences play a role as well. Brazil's second-crop, or "safrinha," corn often follows soybean production and benefits from residual nitrogen supplied by the preceding soybean crop, reducing fertilizer requirements. Meanwhile, soybean growers in Brazil's Cerrado region face higher fertilizer demands because of the characteristics of the region's highly weathered tropical soils.
The report found that returns vary depending on the crop and measurement used. Mato Grosso achieved higher returns over total economic costs for corn than the U.S. Heartland, while national U.S. corn returns exceeded Brazil's when measured over both operating and total economic costs. For soybeans, Brazil held an advantage in returns over total economic costs nationally, while U.S. farmers generated stronger returns over operating costs.
Transportation infrastructure is another area where Brazil has been making gains. Researchers noted that road improvements connecting production regions to northern export ports have lowered shipping costs compared to traditional southern export routes, strengthening the country's competitive position in global markets.
What This Means for U.S. Farmers
The USDA report suggests that global competition is increasingly influenced by factors beyond commodity prices alone. Brazilian producers continue to benefit from structural advantages such as lower land costs, currency conditions, and double-cropping opportunities.
At the same time, U.S. farmers retain significant strengths through higher yields, efficient operations, advanced production systems, and strong national profitability metrics for corn.
For American producers, the findings reinforce the importance of maintaining productivity, controlling overhead costs, and continuing to invest in technologies that preserve yield advantages as Brazil expands its presence in global grain markets.