Barter operations: a multivariate analysis of its use by soybean producers from the state of Minas Gerais

Abstract

Brazil is the second largest producer of soybeans in the world, in which, in addition to boosting other food industries dependent on this oilseed, it promotes agricultural production in development and technification. The state of Minas Gerais is the seventh largest soybean producing in Brazil and it is responsible for approximately 5% of the total processing of this grain. However, this agricultural activity still lives with risks associated with the production. One of the most important tools for the producer's risk management is the barter, configured as an operation that allows the producer to exchange his future production for inputs, being able to freeze his prices and amortize these values with a fixed volume of production. Although this tool is useful in risk management, there is little information about the knowledge of producers related to this tool and its benefits and possibilities in risk management. In this sense, the present study sought to analyze factors that influence soybean producers in Minas Gerais with regard to barter as a risk management and fundraising tool, based on the application of a questionnaire structured around the variables and specificities of producers in the state. The results obtained show that soybean producers in Minas Gerais, for the most part, do not have a detailed knowledge of the tool and, mainly for this reason, they are afraid of its realization.