We have recently received inquiries from landowners concerned about soybean prices, leading to uncertainty regarding the choice between leasing and direct management. The price of soybeans impacts both management models, as rental income is often calculated in kilograms of soybeans. It’s true that current prices are quite low, resulting in reduced profit margins, prompting some to consider switching from soybeans to alternative crops.
Potential alternatives include maize, sorghum, and sunflower. Sunflower is relatively uncommon in Uruguay and previous experiences have been less than favorable. Additionally, harvesting sunflowers requires a special disk, which can be a limitation. Sorghum is well-established and beneficial for soil health, but it lacks economic appeal. In regards to maize, there are concerns about the increasing presence of the corn leafhopper (chicharrita), which has caused significant issues for farmers in Argentina and Brazil. Managing this pest could require 6 to 7 applications of pesticide during the growth cycle.
After discussions with agronomists, we decided to shift from late maize to early maize, as cooler nights may reduce the risk posed by the corn leafhopper. We will maintain our soybean planting schedule, as it continues to offer the best profit margins compared to alternatives. An advantage of soybeans is the flexibility in selling; farmers typically sell 30% shortly after seeding, another 30% just before harvest, and the remainder post-harvest. However, landowners can choose their selling times based on market prices, which can even be outlined in rental agreements. Price fluctuations during the growing season can be quite significant.
For winter crops, we will explore carinata and camelina due to their favorable prices and shorter growth cycles compared to wheat. These two crops are similar to rapeseed.
