Destination Brazil

Destination Brazil

Iowa farmers size up the competition with a trip to world’s largest soybean producer

Stories and photos by Aaron Putze, APR

At first glance, Brazil would appear to be an unlikely destination for Iowa farmers. It is, after all, the world’s leading producer of soybeans and thus, the American farmers’ chief competitor in the global marketplace for soy.

But measuring up to the competition is critical to ensuring Iowa farmers and the communities that depend on their stability and profitability remain on top of their game as the world’s appetite for protein intensifies.

“It’s tempting to think you’re the only one who knows your business best,” says Warren Bachman, a soybean farmer from Osceola. “But you can always learn and improve, especially from farmers who are the world’s leaders in growing soybeans.”

A driver for Bom Futuro, the largest producer of crops in Brazil, dons an Iowa Soybean Association cap.

Green Desert No More

The 4,600 miles that separate Osceola from the heartland of Brazil melts away upon arriving in Mato Grosso. The Brazilian state is the country’s breadbasket, much like Iowa is to the U.S. The state boasts a land area equivalent to Nebraska, Minnesota, Illinois, Ohio, Indiana and the Hawkeye State – combined – with agricultural productivity on an equally prolific scale.

Once described as a “green desert” due to its lush landscape but minimal production of food for human consumption, Mato Grosso has sprung to life over the past 40 years.

Stand at an intersection in the heart of the Brazilian state and you’ll see soybeans being harvested by a fleet of 10 John Deere combines outfitted with 45-foot drapers. Glance to the left and a four-wheel drive tractor with a 24-row planter is seeding second-season corn. Behind you, a field of cotton is maturing. And to your right, 5,000 hectares of sugar cane are ready to be harvested and processed into ethanol and food and beverage sweetener.

Welcome to Brazil, home of 24/7, 365 days a year agriculture.

Nelore, a breed of cattle originating in India, are popular in Brazil. Mato Grosso produces 32 million head of cattle annually.

“I’ve never seen anything like it,” says Robb Ewoldt, a farmer from Davenport. “The sheer enormity and pace of activity boggles the mind. You can’t even believe it when you see it.”

The two-week journey through Brazil’s most productive farm country included visits to farms, food, sugar and biofuels processing facilities and time navigating the country’s inland waterways. Bachman and Ewoldt were joined by fellow soybean farmers Tim Bardole (Rippey) and Brent Swart (Spencer).

“The success of Iowa soybean farmers depends on knowing the present and understanding what the future might hold for the nation’s biggest soy producer,” says Bardole, who farms with his father and son just a 40-minute drive from Des Moines. “We’re always looking for a competitive advantage, and it begins with knowing what might challenge other farmers in terms of production and getting their product to international markets.”

These issues include soil fertility, pest and disease management, environmental stewardship, carbon intensity and the condition of roads, bridges, rail and ports.

ISA directors and staff enjoy exploring a waterway near Santos in Sao Paulo.

Ag Mecca

Entrepreneurs from the country’s southern regions migrated north almost 35 years ago, drawn by seemingly endless tracts of Cerrato and abundant natural resources. Land previously thought to be inhospitable for food production quickly became productive with the use of fertilizer, modern farm equipment, ingenuity, growing global demand for protein and, at times, favorable government policy.

Today, Mato Grosso and its 7,000 farms are prolific producers of soybeans, corn, cotton, sugar cane, popcorn, sunflower, cattle, pigs and assorted vegetables and fruit.

Despite being just one of 26 Brazilian states, Mato Grosso accounts for nearly 26% of the country’s soybean acres and roughly 30% of an estimated 130 million metric tons of soybean production. Nearly 60% of that production is exported.

Mato Grosso also ranks first in cotton and beef production and second in field corn (for comparison, Iowa ranks first nationally in pork, egg and corn production, second in soybeans and top 11 for beef, turkey and dairy).

“Many of the farms of any size and consequence are new farms – 20, 30, maybe 35 years old,” says Swart. “Like U.S. farms, they’re modern, business-minded and focused on growth, sustainability and diversification.”

Environmental Concerns

Despite efforts to forgo tillage and generate more solar power, the state’s environmental scorecard is mixed. Nearly 40% of the Amazon rain forest is in Brazil. The ecological wonder is often referenced as the world’s “lungs” as it’s responsible for producing almost 20% of the planet’s oxygen.

Since 1970, one-fifth of the Brazilian rainforest has been repurposed. Native Cerrato is also being converted into pasture for cattle production. In 2001, the Brazilian government mandated that land area developed from the Cerrato for agricultural purposes must maintain 20% in a legal preserve. That requirement increased to 35% two years ago and can be as much as 80% if heavily forested.

Brazil must also reconcile ag production methods with changes in consumer preferences. In addition to cultivating forest and pasture, farming in a tropical climate requires the use of considerable amounts of fertilizer and pesticides.

While Iowa farmers continue to find ways to reduce both, doing so in a tropical environment is a much greater challenge. Unlike Iowa, Brazil’s winters don’t include freezing temperatures that relieve pest and disease problems.

Poor infrastructure also remains a challenge for Brazilian farmers and ag processors, adding to the carbon intensity of its food production. Roads are difficult to build, maintain and traverse and thus inefficient conduits for transporting commodities hundreds of miles to ports and processing facilities.

Ewoldt, who farms just a hop, skip and jump from the Mississippi River, says Iowans often hear farmers talk about the importance of maintaining good roads, bridges, rail, rivers (including their locks and dams) and ports. That’s because all are needed to transport what Iowa farmers grow efficiently, effectively and reliably to the 98% of consumers who live somewhere other than the U.S.

“Our infrastructure is our direct point of contact with customers throughout the world,” Ewoldt says. “After journeying to Brazil, it’s evident that our infrastructure remains our competitive advantage. It’s important to keep it that way.”

United States vs. Brazil: A Comparison

POPULATION U.S.: 326 million Brazil: 210 million

LIFE EXPECTANCY U.S.: 80.3 years Brazil: 74.7 years

UNEMPLOYMENT (2019) U.S.: 3.5% Brazil: 11%

GROSS DOMESTIC PRODUCT (2021) U.S.: $22.7 trillion Brazil: $1.5 trillion

AGRICULTURE AREA (pasture) U.S.: 17.4% Brazil: 7.8%

GRAIN PRODUCTION U.S.: 430 million metric tons Brazil: 252 million metric tons

EXPORTS U.S.: $1.6 trillion Brazil: $217 billion

EXPORTS TO CHINA U.S.: 18.7% Brazil: 21.8% Brazil exports to U.S.: 12.3%

TAXES U.S.: 17% of GDP Brazil: 35.7% of GDP

RAILWAYS U.S.: 140,300 miles Brazil: 17,732 miles

ROADS U.S.: 4.08 million miles paved: 2.67 million miles Brazil: 981,766 miles paved: 132,226 miles

WATERWAYS U.S.: 25,481 potential miles Brazil: 31,068 potential miles