Agricultural profitability as a determinant in the production decisions of businesses in the central region of Argentina
DOI:
https://doi.org/10.22231/asyd.v18i3.1495Keywords:
agriculture; gross margin; soyAbstract
The objective of this study is to analyze whether Argentinian farmers from the central region make production decisions considering the calculations of profitability obtained at the time of sowing, or if there are other factors that have an impact such as diversity and alternation of the crops, climate predictions, commercialization problems, expectations of the sectorial policy, technology, and others. The alternatives examined link the production of soy, corn and wheat, which are annual crops, in the provinces of Santa Fe, Córdoba and Buenos Aires, as dependent variable, and the gross margins of soy, corn and wheat in each zone. The period under study covers the years 2011 to 2016. Although profit margins constitute an important element that conditions the production decision, it is clear that other elements are considered at the time of deciding which crop to produce, with the exception of the province of Santa Fe, favored by its lands, climate and logistics, where results evidence a relationship between the crops of higher margin and farmed areas. Future studies can attempt to identify other elements that condition the production and even the degree to which each influences it.
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