Reflections of the Covid-19 pandemic on the acquisition costs of agricultural inputs: an empirical investigation using the Total Cost Ownership methodology

Abstract:

The Covid19 disease, resulting from contamination by the SARS-CoV-2 virus, impacted on the economy, especially in the agricultural sector, which has become more susceptible to these impacts through the rise in costs that are not easily perceived. This study aims to analyze the impact on input acquisition costs, caused by the Covid-19 pandemic, in small family farms, from the perspective of the Total Cost Ownership (TCO) methodology. The methodology used in this research was a case study in 12 family farms, located in the southern region of Brazil, with data collected from April 2017 to March 2020. Four inputs common to all properties were analyzed. The results showed that there was an increase of 39.47% in the acquisition costs of inputs and a weighted average increase of 34.7%, which had a negative impact on the monetary result of family properties. It was concluded that the properties were affected by the effects of the pandemic with regard to the purchase of inputs, mainly with an increase in acquisition costs, due to the shortage of essential supplies for the basic operations of small rural properties.

Keywords:
economic consequences of the pandemic; rural accounting; total cost of ownership; family farming