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Brazil’s competitive advantage in soybean production is concerning

An assistant professor at Purdue University says Brazil’s competitive advantage in soybean production is concerning for U.S. farmers.

Joana Colussi says the U.S. continues to lose market share at a rapid pace.

“Around 75 percent of exports from Brazil went to China,” she says. “Just in August, 85 percent of their total soybeans sold went to China. This was another record.”

She says Brazilian farmers have seen larger profit margins in recent years. But, “Brazil has huge indirect costs, much higher than the US in fertilizer and pesticides. The cost of credit in Brazil is very high as well. The money from the government that farmers get every year is shrinking. It’s reducing.”

Colussi says with both the U.S. and Brazil set to produce record corn and soybean crops, it could increase the competition to be China’s top customer.

Colussi made her comments during the Federal Reserve Bank of Chicago’s 2025 Midwest Agriculture Conference.