When the real drops in relation to the dollar, interest rates for farmers go up even higher. The dependence on foreign inputs also raises the cost of technology. If the real drops, the price of fertilizer, seed and some machinery increases. Either way, we buy it. And yet, even medium-sized farms can be profitable in Mato Grosso.
Diversification is one strategy some medium-sized farms use for success.
Luis Carlos Speradio milks 40 cows, raises hogs for private sale, grows 4,800 acres of soybeans and has 960 acres of cotton. He moved to Mato Grosso from the south 17 years ago, arriving with nothing but an old truck and some dreams. He is proud of what he has achieved. He cannot even decide when to eat his meals. Someone else schedules that for him.