The dilemma between own or rented machinery: the case of a modal farm in Northern Alto Paraná-Paraguay

Authors

  • Victor Ramón Enciso Cano Universidad Nacional de Asunción. Facultad de Ciencias Agrarias. San Lorenzo, Paraguay.
  • Wilma Benítez Morán Universidad Nacional de Asunción. Facultad de Ciencias Agrarias. San Lorenzo, Paraguay.
  • Ángel Ramón Peña Cardozo Universidad Nacional de Asunción. Facultad de Ciencias Agrarias. San Lorenzo, Paraguay.

DOI:

https://doi.org/10.18004/investig.agrar.2023.junio.2501723

Keywords:

maquinarias agrícolas, análisis económico, finca modal

Abstract

In Paraguay, there are few economic and financial studies, of public access, related to agricultural machinery as well as its impact on the results of a farm, which can be characterized as a documentary gap. For this reason, queries, from farmers or any other, such as: is it profitable to have your own machines? or, from what area is it profitable to have your own machines? There are no documented answers whose methodologies can be replicated. Faced with this situation, this work proposed to contribute to reducing the documentary gap on the subject. Its general objective was to determine the effect of the purchase of agricultural machinery (seeder, sprayer, and harvester) on the profitability of an agricultural farm. In order to achieve the indicated objective, a case study was used. An economic analysis of a modal farm in the northern region of Alto Paraná was carried out with the following indicators: gross margin, operating result, net income, capital income, profitability, and liquid profit. Three scenarios were built for the analysis: (i) baseline, (ii) the machinery provides services in the modal farm at cost price and the surplus was sold at market prices to third parties, and (iii) all services (finca modal and third parties) were sold at prices that include a profit margin. It was concluded that the provision of services with its own machines increases the profitability of the farm above the baseline.

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References

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Published

2023-09-21

How to Cite

Enciso Cano, V. R., Benítez Morán, W. ., & Peña Cardozo, Ángel R. (2023). The dilemma between own or rented machinery: the case of a modal farm in Northern Alto Paraná-Paraguay. Investigación Agraria, 25(1), 49–56. https://doi.org/10.18004/investig.agrar.2023.junio.2501723
CITATION
DOI: 10.18004/investig.agrar.2023.junio.2501723
Published: 2023-09-21

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RESEARCH NOTES