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PAM 2020: with an increase of 30.4%, value of agricultural production hits a record R$ 470.5 billion

September 22, 2021 10h00 AM | Last Updated: September 25, 2021 12h30 AM

Value of national agricultural production hit R$ 470.5 billion, 30.4% higher than in 2019. Planted area amounted to 83.4 million hectares, 2.7% more than a year ago. The output of cereals, legumes and oilseeds reached 255.4 million metric tons, having exceeded 2019’s figure by 5.0%. These three variables hit records in the time series of Municipal Agricultural production (PAM), a survey that has investigated the main farm products in all Brazilian municipalities since 1974.

The group of 50 municipalities with the highest agricultural output figures generated R$ 106.9 billion, or 22.7% of the national value of agricultural. Twenty of these municipalities were located in Mato Grosso, six in Bahia and six in Mato Grosso do Sul. Sorriso (MT) remained as the leader, with R$ 5.3 billion, or 1.1% of the national output. São Desidério (BA), with R$ 4.6 billion and Sapezal (MT) with R$ 4.3 billion followed it.

Among crops accounting for main contributions to the record harvest in 2020 is soybean, with an output of 121.8 million metric tons, having generated R$ 169.1 billion, or 35.0% above the output in 2019.

Corn production increased by 2.8%, a new record, having reached 104.0 million metric tons, which generated R$ 73.949 billion, 55.4% more than in 2019. For the first time since 2008, the value of corn production exceeded that of sugarcane (R$ 60.8 billion).

The coffee crop had strong recovery in relation to 2019, with an increase of 54.4% in value of production (R$ 27.3 billion). As the world leader in coffee production, Brazil saw an increase of 22.9%, that by, 3.7 million metric tons in 2020.

20 of the 50 municipalities with the highest value of production are located in Mato Grosso

In 2020, the 50 municipalities with the highest values of agricultural generated R$ 106.9 billion, or 22.7% of the total in the country. Among these, 20 were located in Mato Grosso. Bahia and Mato Grosso do Sul, with six municipalities each, were also relevant.

The municipality with the highest value of agricultural production, once more, was Sorriso (MT): R$ 5.3 billion, or 1.1% of the national total, with an increase of 35.5% against 2019. Sorriso generated R$ 1.9 billion from the production of corn, 58.3% more than in 2019, R$ 2.8 billion from the production of soybeans (29.1% more) and R$ 454.1 million from the production of upland cotton seed.

São Desidério (BA) was in the second position, with R$ 4.6 billion of value of agricultural production, an increase of 44.6% in the year. This municipality accounted for the third highest value of production of soybeans in the country (R$ 2.5 billion), with an increase of 76.2% in the year. Cotton, despite the decrease in output, generated R$ 1.6 billion, second highest figure in terms of value of production for municipalities in the country.

Sapezal (MT) was in the third position in the agricultural production ranking , with a total R$ 4.3 billion and an increase of 26.7% in the year. The main local crops are: cotton, soybeans, corn and beans. Upland cotton amounted to 990.2 thousand metric tons, with an increase of 10.7%, having generated a record value of production of R$ 2.3 billion. The output of soybeans increased by 8.0% and reached 1.3 million metric tons, having placed the municipality in the ninth national position regarding the production of this legume (R$ 1.5 billion).

2020 Harvest Change before 2019
Value of production R$ 470.5 billion 30.4%
Harvested Area 83.1 million hectares 3.1%
Production 255.4 million metric tons 5.0%

The record R$ 470.5 billion of value of production in the 2020 harvest was affected by the growing demand from the foreign market and by a currency favorable to exports, leading to an increase in areas planted with soybeans, corn also bigger investments in agricultural crops. The drought in Rio Grande do Sul, in the beginning of the year, reduced productivity of soybean, corn and wheat crops, among others, but climatic conditions were favorable enough in the rest of the country.

Planted area amounted to 83.4 million hectares, with an increase of 2.7% against 2019. There was an increase of 3.5% in the area planted with soybeans, of 3.2% in the area planted with corn and of 14.9% in the area planted with wheat. The area used for sugarcane planting fell by 0.9%.

The10 crops with highest value of production concentrated 85.7% of the total value generated by agricultural activity. In 2020, the value generated by soybeans increased by 35.0% and amounted to R$ 169.1 billion, thus remaining on top of the ranking. Corn is in the second position for the first time since 2008, better than sugarcane. And rice, as a result of the rise of prices, moved to the sixth position in terms of value of production. Beans rose to the eighth position, having surpassed banana. Coffee is the fourth product in terms of value of production. The table below shows the 15 main crops, in increasing order of value of production:

Area planted or directed to planting, harvested area, amount produced, average yield, value of production, change of production andn of value of production (VP) against the previous year,
by main products - Brazil - 2020
Main products Amount produced (t) Value
(1 000 R$)
Change in the year (%) participation in the national VP (%) Municipality with highest VP Participation of VP in the product (%)
Production Value of production
Total ...  470 481 746 ... 30.4 100.0   100.0
Soybeans  121 797 712  169 100 228 6.5 35.0 35.9 Sorriso (MT) 1.7
Corn  103 963 620  73 949 252 2.8 55.4 15.7 Sorriso (MT) 2.5
Sugarcane (1)  757 116 855  60 800 886 0.5 11.3 12.9 Morro Agudo (SP) 1.3
Coffee  3 700 231  27 254 184 22.9 54.4 5.8 Patrocínio (MG) 2.4
Cotton  7 070 136  19 127 892 2.6 19.5 4.1 Sapezal (MT) 12.2
Rice  11 091 011  11 631 701 7.0 32.7 2.5 Uruguaiana (RS) 5.0
Orange  16 707 897  10 898 251 -2.2 14.3 2.3 Casa Branca (SP) 4.5
Cassava  18 205 120  10 887 678 3.5 23.0 2.3 Porto Velho (RO) 2.6
Beans  3 035 290  10 776 474 4.4 44.2 2.3 Paracatu (MG) 3.2
Banana  6 637 308  8 638 598 -2.8 14.5 1.8 Bom Jesus da Lapa (BA) 3.1
Wheat  6 347 987  6 777 285 13.5 67.0 1.4 Tibagi (PR) 1.9
Tobacco   702 208  6 048 966 -8.8 -9.9 1.3 São João do Triunfo (PR) 3.5
Tomato  3 753 595  6 045 302 -4.3 6.7 1.3 Itapeva (SP) 7.9
Potato  3 767 769  5 483 311 1.5 0.5 1.2 Mucugê (BA) 8.8
Acai berry  1 478 168  4 754 806 5.6 56.9 1.0 Igarapé-Miri (PA) 33.1
Other ...  38 306 932 .. 17.6 8.1  
Source: IBGE, Diretoria de Pesquisas, Coordenação de Agropecuária, Produção Agrícola Municipal 2020.
(1) Planted area refers to the area directed to harvests in the year.

In the last 25 yearsthe average yield of soybeans increased by almost 50%, having changed from 2,199 kilograms per hectare in 1995 to 3,275 kg/ha in 2020. The output of corn increased 387.0% in the period, reaching the second highest value of production among agricultural products, as a result of an increase in average yield, which more than tripled and hit 5,695 kg/ha in 2020.

Sugarcane, despite the reduction (0.9%) in harvested area in 2020, has more than doubled its planting area in the last 25 years, having allowed an increase of 188.2% in the volume produced. The bigger demand for flex-fuel cars and the bigger participation of Brazil in the world market of sugar exerted significant influence on the growth of this crop.

Value generated by grain harvest hits new record, R$ 295.7 billion

The harvest of cereals, legumes and oilseeds in 2020 (255.4 million metric tons) was the biggest in the entire time series of PAM, which started in 1974. Favorable climatic conditions, which led to the increase of average yield for most crops, together with the expansion of planting areas, led to this new figure: 5.0% above the volume harvested in 2019, which had been a record itself.

The main items accounting for this increase were soybeans, with 7.5 million metric tons more; corn, with 2.8 million metric tons, and rice, with an increase of 722.4 thousand metric tons. Only sunflower, oat, barley and rye recorded decreases in output.

The value generated from the production of grains increased by 39.3% and hit a new record of R$ 295.7 billion, mainly due to the high prices of the main agricultural commodities in the international market. Soybeans made up 57.2% of the total value of production in this group.

Mato Grosso was the main producer of cereals, legumes and oilseeds in the country, followed by Paraná, Goiás and Rio Grande do Sul.

Soybeans – The production of soybeans in Brazil, a country that has led world production since 2019, hit a new record in 2020: 121.8 million metric tons, 6.5% above the previous year, having amounted to R$ 169.1 billion, 35.0% more than in 2019.

Harvest started with a delay in planting, due to the lack of rain in the ideal period of sowing, but good climatic conditions throughout the development of crops favored this crop, and there was an increment of 2.8% in average yield.

Only Rio Grande do Sul, which was the second main producer of soybean in 2019, recorded significant decrease in productivity (-40.6% in average yield). But these losses were reduced after one more year of increase in Mato Grosso (8.8%, with a total 35.1 million metric tons), the main national producer, and Paraná (27.7%, with a total 20.9 million metric tons and which is now the second biggest producer once more.

Corn – The national production of corn in 2020 hit a record in the time series, and reached 104.0 million metric tons, with an increase of 2.8% against 2019.

Because of rising prices, producers invested in corn and soybean planting in the winter harvest. This way, the constant decrease in the area planted with corn 1st crop was leveled off in 2020, and remained at 4.9 million hectares. In turn, corn -2nd crop, which accounted for 74,4% of the production, recorded an increase of 3.0% in output.

Mato Grosso remained in the first position in terms of production of corn, with 33.7 million metric tons, almost the total harvested in the 2nd crop, and a value of production of R$ 19.1 billion (an increase of 1.6%). Paraná was in the second position, with 15.8 million metric tons and a value of production of R$ 12.6 billion (an increase of 55.8%). Goiás, in the third position, produced 11.8 million metric tons with a figure of R$ 7.6 billion (an increase of 34.1%).

Sorriso (MT) led this crop in the country, with 3.2 million metric tons. Also relevant were Rio Verde (GO), with 2.2 million metric tons and Nova Ubiratã (MT), with 2.1 million metric tons.

Upland cotton seed – In 2020, the production of upland cotton hit a new record (7.1 million metric tons) with an increase of 2.6%. Brazil remains as the fourth main producer of this fiber and the second main exporter, second to the United States. With the rise of prices, value of production increased 19.6% and reached R$19.1 billion. With 89.0% of planted area, Mato Grosso and Bahia lead the production of cotton, with values of production of R$ 12.8 billion (an increase of 23.1%) and R$ 4.4 billion (an increase of 16.3%), respectively.

Rice and beans – In 2020, the prices of this pair varied significantly due to social distancing measures resulting from the Covid-19 pandemic, which generated an increase in consumption and in stocks.

The price of rice had a record increase between the second and third months of the year. The appreciation of the dollar added to it. Production was leveled off, but value of production increased by 32.7%, having generated R$ 11.6 billion. Rio Grande do Sul was responsible for 69.9% of the national production of rice, with 7.8 million metric tons, followed by Santa Catarina, with 1.2 million metric tons.

Beans recorded a rise of prices and generated R$ 10.8 billion in value of production (an increase of 44.2%) from its 3.0 million metric tons (4.4% more than in 2019). Paraná, despite the decrease of 1.8% in production, remains as the main producer of beans in the country, with a total 624.6 thousand metric tons, followed by Minas Gerais, with 553.1 thousand metric tons.

Wheat – The year 2020 was marked by an increase of 15.7% in the area harvested with wheat, which amounted to 2.4 million hectares. As a result, production increased 13.5% and reached 6.3 million metric tons. The value of production increased 67.0%, and hit R$ 6.,8 billion. Paraná, main producer of wheat in the country, recorded an increase of 30.0% in output, a total of 3.1 million metric tons. Rio Grande do Sul (2.1 million metric tons) was in the second position.

Coffee – Brazil remains as the main producer of coffee producer in the world. The year 2020 had positive results, but with no such favorable climate conditions as in 2018, latest year with a full harvest. Production increased 22.9% and reached 3.7 million metric tons, and the value of production grew by 54.4%, amounting to a total of R$ 27.3 billion, thanks to international prices. From the total coffee produced, 76.5%, or 2.8 million metric tons were of the arabica type, with a value of production of R$ 22.6 billion, an increase of 66.3% against 2019.

Minas Gerais was responsible for 72.2% of all the coffea arabica produced in the country, with a total of 2.0 million metric tons and an increase of 38.3% in relation to 2019. The value of production of coffea arabica in the state was R$ 16.5 billion. São Paulo, second biggest producer of coffea arabica, recorded an increase of 18.18% in production, and reached 344.6 thousand metric tons and R$ 2.9 billion.