SLC Agrícola to expand 2026/27 crop area to 854,400 ha

SLC Agrícola projects planting 854,400 hectares in the 2026/27 season, an increase of 2.2% compared to the prior cycle. The company released estimates on October 7, 2026, showing that the average production cost per hectare will also rise by 2.2% to BRL 7,217. Second-crop cotton driven by irrigation expansion spurred the land increase, alongside adjustments to the crop mix.

Soybean will maintain the largest share of acreage at 442,100 hectares, up 2.9% to account for 51.7% of total area. Cotton will expand 0.3% to 200,400 hectares, combining a 10.8% decrease in first crop to 92,200 hectares and a 12.2% rise in second crop to 108,200 hectares. Second-crop corn area will fall 2.3% to 154,600 hectares, while other activities will grow 18.4% to 57,300 hectares. Projected yields stand at 4,080 kilograms per hectare for soybeans, up 1.1%, and 7,957 kilograms per hectare for second-crop corn, up 2.8%.

The increase in budgeted production costs stems primarily from higher fertilizer prices in US dollars and projected inflation of 4%. These headwinds were partially offset by lower pesticide prices in dollars and a stronger local currency. SLC adopted an exchange rate of BRL 5.20 per dollar, compared to BRL 5.45 in the previous cycle, with 57% of production costs indexed to the dollar. Second-crop corn faces the steepest cost rise of 3.8% to BRL 4,510 per hectare, followed by soybeans with a 2.1% increase to BRL 5,292. Cotton costs will rise 1.8% to BRL 14,102 for first crop and 1.9% to BRL 13,088 for second crop.

SLC has hedged 52.9% of its 2026/27 soybean crop at an average price of $12.36 per bushel on a FOB port basis, and 62.2% of cotton at 79.14 cents of a dollar per pound. Corn price hedging reached 6.3% of the crop at BRL 53.04 per bag on the farm. Currency protection covers 23.8% of soybeans at BRL 5.3916 per dollar, 23% of cotton at BRL 5.7642, and 6.3% of corn at BRL 5.5083. For 2027, the company also projects the sale of 112,500 head of cattle and the production of 86,280 big bags of seeds.