Production costs of commodities in the USA

Abstract

This paper analyzes cost developments and values of production of four of the most relevant agricultural commodities grown in the USA (soybean, corn, cotton and wheat) from 1996 to 2012. Data were collected from the United States Department of Agriculture (USDA), which provides historical data series of these crops. In this period, it is possible to identify an intense growth of costs related to seeds and fertilizers, while costs related to pesticides remained practically stable in relation to soybean, corn and cotton. Otherwise, wheat production costs have shown a less pronounced rise concerning seed expenses. Such a difference in seed costs is associated to the introduction of genetically modified organisms in soybean, corn and cotton crops. Regarding these crops, it is evident that seed and fertilizer companies had revenue gains, while farmers’ revenue decreased. The evolution of productivity of these crops remained practically stable throughout this period. These results are relevant to assess the impact of the increasing privatization of seed research both in the USA and in Brazil.