After falling in 2017, the value of the agricultural production of the country grew 8.3% in 2018, reaching R$343.5 billion and hitting a new record in the time series started in 1974. The high was driven, mainly, by soybean, cotton and total coffee commodities, which increased, respectively, 13.6%, 52.3% and 22.0%.

The planted area, however, fell 0.6%, staying at 78.5 million hectares, influenced by the 1.2 million hectares reduction (-6.8%) in the corn crop area, due to scarcity of rainfall in the reaping period. 

The grain bumper crop of 2017 was not surpassed in 2018. Even though there were increments of 29.0% in the production of upland cotton seed, of 43.5% in oats, 2.8% in soybeans and 24.8% in wheat; the 16.0% drop in the corn production - equivalent to 15.6 million metric tons - was determinant to the 4.7 % decrease in the total produced by the group of cereals, legumes and oilseeds, which stood at 227.5 million metric tons. 

Soybeans were responsible for 37.1% of the agricultural production value, leading the rank since 1994, except for the year 1996, when sugarcane got the first place. The other main products were sugar cane (15.2%), corn (11.0%), total coffee (6.6%) and upland cotton seed (3.7%). 

São Paulo is a highlight with the highest production value (15.5% of national participation) followed by Mato Grosso, which increased its percentage from 13.7% to 14.6%. Bahia and Mato Grosso do Sul also increased their percentages in the national participation, reaching 5.7% and 5.6%, respectively. Those states increased, in 2018, their production of soybeans and upland cotton. They are also important corn producers.

As to the municipalities, the highest values were seen in São Desidério (BA), with R$3.6 billion; Sapezal (MT), with R$3.3 billion; and Sorriso (MT), with R$3.3 billion.

The survey of Municipal Agricultural Production (PAM) 2018 brings information by municipalities ranging from planted area, area to be harvested, harvested areas, amount produces, average yield and production values for 64 agricultural products. For furhter information, access the complete publication and the support material.

Soybeans, cotton and coffee hit records in production and in production value

The record of R$343.5 billion in the production value of the 2018 crop was driven by increases in production of three important Brazilian commodities: soybeans, upland cotton and total coffee, which also hit records in both variables.

At the top of the production value ranking, soybeans grew 2.8% in production and 13.6% in production value, totaling 117.9 million metric tons, reaching R$127.5 billion. This rise in soybean prices was influenced by the trade competition between China and the United States and the crop failure in Argentina. Brazil had 34.8 million hectares of soybeans planted in the country, or 4.1% of the national territory. The largest soybean producers were Mato Grosso, with 26.8% of production; Paraná (16.1%) and Rio Grande do Sul (14.8%).

Upland cotton seed had a 29.0% growth in production, with 5.0 million metric tons. The production value reached R$12.8 billion, an increase of 52.3%, driven by the decrease in the world inventory and the high demand. With the price increase, producers expanded the planted area by 23.9%, reaching 1.2 million hectares, the highest since 2012. In the ranking of production value, cotton occupies the 5th position. Regarding cottonseed, Mato Grosso, with 2.0 million metric tons, and Bahia, with 761.1 metric tons, are the main producers in the country, accounting for over 90% of the production.

In a year of positive bienniality (physiological characteristic of the arabica species, which intercaletes years of high production and years of low production), the total coffee had a production of 3.6 million metric tons, 32.5% higher than in the previous year. The value of production rose 22.0%, reaching R$22.6 billion and occupying the 4th position in the ranking of the production value. Of the total produced, 75.0% refers to coffea arabica (2.7 million metric tons), with production value of R$18.1 billion. The main producers of coffea arabica are Minas Gerais, Sao Paulo, Espírito Santo and Bahia. Coffea canephora had a production of 889.8 thousand metric tons, which reached R$4.5 billion, and the main producing states are Espírito Santo, Bahia and Rondônia.

Table 1 - Planted area or area to be harvested, harvested area, amount produced, average yield, production value, production change and value of production over the previous year, by main products - Brazil - 2018

Drought affects corn production and raises its prices

The drought affected the corn production and the 2018 crop was 16.0% lower than that of 2017 - 15.6 million metric tons - to 82.3 million metric tons. With the lowest domestic and international supply, as Argentina was also affected by weather problems, the value of production reached R$37.6 billion, an increase of 14.1%.

Adverse weather conditions caused production losses in Rio Grande do Sul (-24.8%), Paraná (-27.3%), Mato Grosso do Sul (-24.3%), Mato Grosso (-12.6%) ) and Goiás (-10.6%). Among the 10 largest corn producing states, only Bahia and Piauí had production increased, with rises of 18.3% and 5.5%, respectively.

The 20 largest municipalities producing corn are in the Central-West Region and together accounted for 24.1% of all national production. The main producing states are Mato Grosso, Paraná and Goiás.

Grain crop falls 4.7% in 2018

The grain crop of 2017 was not surpassed in 2018. Affected by the reduction in corn production, grain crop fell 4.7% in 2018, staying at 227.5 million metric tons. The value of production for this group, however, was a record, standing at R$198.6 billion.

Out of the winter cereals (oats, rye, barley, wheat and triticale), only triticale had its production reduced. In terms of production value, all cereals increased. The reason for the high prices was the production dropin the main producing countries, especially Russian wheat, due to weather problems.

In Brazil, 5.4 million metric tons of wheat were produced, up 24.8%. The production value was R$3.8 billion, an increase of 61.1% - the highest price paid in the metric ton since the creation of the Plano Real (economic plan).

Paraná hit the record in the production of winter cereals, harvesting 3.3 million metric tons, with a production value of 2.4 billion reais, with wheat being the largest crop of this group in the state.

Tabela 2 - Área plantada. área colhida. quantidade produzida. rendimento médio e valor de produção de cereais. leguminosas e oleaginosas. em ordem decrescente de valor da produção. segundo os principais produtos de valor de produção - Brasil - 2018

Central-West Region, State of São Paulo and Municipality of São Desidério (BA) have the highest production values

With R $ 95.9 billion, the Central-West Region reached the highest value of production. In all major regions, the main product was soybeans, except for the Southeast, where sugarcane is the main crop.

São Paulo is the state with the highest production value, with 15.5% of the national share, followed by Mato Grosso, which increased its percentage from 13.7% to 14.6%, Bahia (5.7%) and Mato Grosso do Sul (5.6%). In 2018, these states had soybean and upland cotton production increased. In addition, they are major producers of corn.

Regarding the municipalities, the highest production value was in São Desidério (BA), which went from the 3rd to the 1st position, with R$3.6 billion. The most important products of the municipality are soybeans, cotton and corn.

Sapezal (MT), with R $ 3.3 billion, remained in second place among the municipalities, with cotton, soybeans and corn being the main products grown.

The municipality of Sorriso (MT), with R $ 3.3 million, fell from the first to the third position, with soybeans, corn and cotton as the main products.