Second Crop Planting in Diamantino/MT: Comparative Analysis of Economic Viability Between Corn and Sunflower Crops

Abstract

Objective: This study aims to conduct a comparative analysis of economic feasibility between corn and sunflower crops for harvest in Diamantino/MT by applying the multi-index methodology. Theoretical framework: The theoretical framework corresponds to contents related to the analysis of the financial viability of projects and investments, as well as materials related to the planting of ratoon crops, to the analyzed crops and others that help in understanding the theme.   Method: Four commercialization scenarios were projected, two for each genre studied, at market prices and by minimum prices of the National Supply Company - CONAB. A Minimum Rate of Attractiveness was defined and the multi-index methodology was applied, aiming to evaluate economic viability, allow comparison between the projected scenarios, evaluate the return on investment and the risks.   Results and conclusion: The study, limited to the case studied, demonstrated, from the definition of the Minimum Rate of Attractiveness in 12% p.a., only one of the sunflower scenarios proved to be economically feasible, and then the multi-index methodology was applied, which showed that the project would generate a return on the added investment of 8.19% and that the project's risks are moderate, and then the planting of sunflower is feasible for the producer. Implications of the research: The main contributions of the study are in the sense of demonstrating a different and more comprehensive methodology than those traditionally used for investment evaluation, and can contribute to researchers, rural producers or even other people who aim to evaluate investments in a certain area using the multi-index methodology.   Originality/value: This study aimed at analyzing a crop that has been adopted as an alternative to corn in the off-season, the sunflower, applying a more comprehensive methodology of economic analysis than the ones traditionally used. By analyzing the financial viability and risk of sunflower planting in the safrinha compared to the main genus cultivated, corn, a projection is presented, for the specific case, of the producer migrating to a new product.