Brazil: Farmers Benefit from Diversification

Brazilian tobacco growers who adhered to the winter crop within the Corn, Bean and Grazing Land after Tobacco Harvest Program benefited from the high value of the grains this year. This is demonstrated by the survey conducted by the Interstate Tobacco Industry Union (SindiTabaco), which promotes the crop diversification program in southern Brazil.

The area devoted to corn, bean and soybean soared 22 percent in the southern region compared with last year, reaching 144,222 hectares. On the other hand, the area devoted to grazing land dropped 27 percent to 25,572 hectares. Due to weather conditions, productivity rates dropped 34 percent on average, resulting in a total crop production volume of 580,442 tons.

The estimated extra revenue amounts to BRL933 million ($174 million), up 47 percent from 2020, when farmers earned BRL634.2 million from the cultivation of grains and grazing land.

“Diversification is always a good option for the farmers, as it makes it possible for them to earn money from different activities,” said Iro Schunke, president of SindiTabaco, in a press note. “In 2021, we observed a preference of the farmers for the cultivation of grains to the detriment of grazing lands, which resulted into higher earnings, and the credit goes to the good moment these commodities are experiencing within Brazilian agribusiness.”