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U.S. and Brazil Soybean Competitiveness: Farm-Level Costs and Returns

A recent Purdue Ag Economy Barometer survey shows 80% of U.S. soybean growers are concerned about Brazil’s growing export advantage. Farm‑level data from 2020‑2024 reveal Brazilian soybean operations in Mato Grosso have lower total costs per ton than Iowa farms, despite a near‑doubling of input expenses after 2021. In Brazil, direct inputs account for over 60% of costs, while U.S. farms bear nearly half of costs as overhead, mainly land‑value appreciation. Consequently, Brazilian producers posted consistently positive economic profits, whereas U.S. farms experienced volatile margins and losses in 2020 and 2024.