Comparative analysis of costs and profitability between canola and wheat crops in northwestern Rio Grande do Sul

Abstract

The study evaluated the economic viability of canola (Brassica napus L. var oleífera) cultivation compared to wheat (Triticum aestivum L.) in the Northwest region of Rio Grande do Sul, highlighting the importance of diversification for the financial health of farms. The analysis covered municipalities with a long-standing tradition of wheat farming that have recently experienced significant expansion in canola cultivation. This applied, qualitative-quantitative study was conducted in 2024 using documentary and bibliographic research, drawing on production and economic data from Companhia Nacional de Abastecimento (CONAB) and Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA), as well as technical and scientific references from SciELO. Factors considered included operational production costs, productivity rates, net profit margins, and the social, economic, and climatic factors directly influencing farmers’ decision-making in the region. Canola showed an average yield of 1,800 kg/ha, lower than wheat, which recorded 3,200 kg/ha, but its market value during the period was higher (R$ 2.40/kg), balancing out gross revenue compared to wheat. Lower operating costs resulted in a higher net margin per hectare. Another important aspect is the lower break-even point, meaning the crop required lower yields to cover operating costs, thereby reducing the product’s financial risk. The results indicate that, even though wheat is a key component of the regional production system, canola emerges as a more profitable and sustainable option. Its use as a complementary crop fosters stability, making farming operations diversified and resilient.