The Determinants of Buying Behavior of Farmers in the State of Mato Grosso Brazil: A Multicase Study with Large Commercial

l Producers of Grains
Leonardo Silva Antolinia, Roberto Fava Scare a and Rafael Augusto Rodrigues Business Management Bachelor, FEA-RP/USP University of So Paulo - School of Business and Economics - Ribeiro Preto, So Paulo, Brazil PhD Professor, FEA-RP/USP University of So Paulo - School of Business and Economics - Ribeiro Preto, So Paulo, Brazil Agronomic Engineer, ESALQ/USP University of So Paulo - Luiz de Queiroz College of Agriculture, Piracicaba, So Paulo, Brazil

Abstract In this paper we developed familiarity with the nature of farms business model and its influence on buying behavior of Large Commercial Producers of grains in the State of Mato Grosso, Brazil. We also characterized the studied producers and the farms, business and risk management, decision making and information sources and its relation with buying of inputs, capital goods and financial services. We also aimed to generate insights about Brazilian producers buying behavior and its relation with brand, price, local supplier and salesperson, by describing three case studies. These results may help suppliers market to producers and future quantitative researches. Keywords: buying behavior of farmers, large commercial producers, grains, Mato Grosso, Brazil.
a

Corresponding Authors

Tel. +55 16 3456 5555 Email: leonardo.antolini@gmail.com; Email R. Fava Scare: rfava@usp.br

Introduction
Brazil is one of the largest producers and exporters of agricultural commodities in the world and in recent years only a few countries had a growth in global agribusiness as expressive as it did. Nowadays, the country is one of the largest producers of food in the world, along with the United States, Argentina and East Europe. Brazil is the largest producer and exporter of coffee, sugar, ethanol and fruit juices. Additionally, it leads the sales ranking of soybean, beef, chicken, tobacco, leather and leather footwear. Projections indicate that the country will be, in a short time, the main production pole of cotton, sugar cane biofuels and vegetable oils (Mapa, 2010). This growth creates great market changes: in the last years, Brazilian agriculture sector became rapidly a strong buyer of inputs, capital goods, financial services and technology. The incorporation of new advances such as transgenics, precision agriculture, increased use of fertilizer, crop protection and the Internet, as well as increasing globalization, cost and price pressures, rational resource utilization and the consolidation of suppliers and arriving of new entrants, introduce changes in the business environment. Moreover, there are changes in the farm structure, such as size, risk management and commercialization, education and attitude of those responsible for the decision making process. These elements affect the business model and the producer buying behavior and may influence in how suppliers market to producers. Farm input market providers can assume a highly influential role not only in supplying the needed materials to produce feed, food and biomass, but also in providing the financial services and scientific expertise to manage the production process more effectively and efficiently (Burgert, 2011). These elements have increased the need for understanding farmers buying behavior in Brazil and its relation with changes in business environment. Although private organizations conduct studies on buying behavior of Brazilian farmers, as the Brazilian Association of Rural Marketing and Agribusiness (ABMR&A; www.abmra.org.br) and the Kleffmann Group (www.kleffmann.com/opencms/opencms/pt/), only a few academic studies can be found (Rossi, Neves and Tornavoi, 2003; Haberli Jr, 2006; Silva, Scare and Casanova, 2008; Scare et al. 2011; Scare, Antolini and Mirandola, 2012). The understanding of the relation of these factors and how they impact on buying behavior of farmers is essential for the success of the marketing and relationship strategies for input suppliers. In our literature review we also considered international studies specifically in the U.S, Argentina, the Netherlands and Canada. We identified 6 main elements affecting buying behavior of farmers, based on Funk and Tarte (1978), Kool (1994), Gloy and Akridge (1999), Alexander et al. (2008) and Feeney et al. (2010): Producer and Farm Characteristics, Risk and Business Management, Decision Making and Information Sources, Products, Suppliers and External Ambient. These researches are mainly quantitative but they provided solid elements that were operationalized in our case study protocol. Also our contacts in The Center for Food and Agricultural Business at Purdue University and the Center for Food and Agricultural Business at Universidad Austral were very important for the development of this initial research in Brazil. This new information about buying behavior of Brazilian farmers may help input suppliers market to producers and future quantitative researches with Large Commercial Producers in Brazil.

Objectives
The objective of this paper is to develop familiarity with the nature of farms business model and its influence on buying behavior of grain producers in the State of Mato Grosso - Brazil, as well as guidelines for future studies, using the multiple cases study method. The specific objectives are characterize the studied producers and the farms, business and risk management, decision making and information sources and its relation with buying of inputs, capital goods and financial services. We also aimed to generate insights about Brazilian producers buying behavior and its relation with brand, price, local supplier and salesperson.

Procedures
We conducted a field study with multiple case studies. We studied 3 Large Commercial Producers of grains from the three main production regions of Mato Grosso: Chapada dos Parecis, BR-163 and Araguaia Valley, respectively, from the cities of Diamantino, Lucas do Rio Verde and Querncia. The Figure 1 shows the location of the three cities in the State of Mato Grosso. The darker areas represent the three cities territories.
Figure 1. Locations of Diamantino, Lucas do Rio Verde and Querncia. State of Mato Grosso, Brazil.

The face-to-face interviews had on average 1 hour and 30 minutes duration each and were realized on September 2012, in locus. All information is relative to 2011 and 2012 crop period. The case study protocol was build based on our literature review and considered Producer and Farm Characteristics, Risk and Business Management, Decision Making, Products, Suppliers and the External Ambient.

Results
To present the results in a simple way we used the same structure of our case study protocol. The results of each interview will be presented singly. We did not identify these producers, so we used the names of the cities of their farms to identify them in this work.

Producer at Diamantino Producer and Farm Characteristics This producer is a man of 50 years old, graduated in agronomy and the only responsible for planning and management activities, purchase of inputs and sale of production, being the primary decision marker of the farm. He lives in the city of Cuiab, the capital of Mato Grosso, at a distance of 188 kilometers from his farm. He is in farming for 17 years and agriculture represents 100% of his earnings. The production of his farm is based on soybean and sorghum in an area of 3,700 hectares. The 2011 gross sales of his farm were between US$ 2.000.000 and US$ 3.000.000, which classify him as large commercial producer, specifically in the State of Mato Grosso. This producer has low levels of productivity (2.820 kg/ha for soybeans and 1.500 kg/ha for sorghum), low use of technology and 100% of rented lands. This production structure creates limitations for the purchase of inputs that can increase productivity and sustainability in the long term because there is a risk of land contract breaking which makes his investments nontransferable to other lands. He prefers not to invest in land productivity, competing in a low cost strategy. For example, the productivity of sorghum, described by him as low, is due to the use of only a few types of inputs (herbicides and seeds) which reduces production costs but also productivity. These factors make the production profitable in the short term, but they are prejudicial in the long term. Risk and Business Management Another factor that affects the buying behavior of this producer is crop succession and crop rotation. In 2010 he tried to plant corn in the second crop but he failed due to the planting window was no advantageous for him, which made him consider the second crop as risky due to corn price variations in that period. In other words, he did not buy inputs for corn production. Besides, not performing crop rotation is risky to business and land sustainability. This feature can also be explained by land leasing and the risk of non-renewal of the contracted area. This producer realizes barter operations with local suppliers to finance production, exchanging part of the production for inputs, before harvest. He also does forward contracts. These operations reduce the risk of future price variations. When buying equipment and machines, he uses government funding and private banks. It was recognized by this producer that the barter operation makes him more loyal to the local supplier reducing his information search of inputs, affecting negatively his profitability and investment level. It is noteworthy that the barter operation is held by this producer due to his credit restrictions from banks and other financial agents making barter operations one of the few sources of production financing. This producer takes part of an association and a cooperative. These memberships are important for him because it provides improvements in producer and workers capabilities, they represent the grain producers politically and they are a source of technical information. A buying pool is organized by this cooperative and this group of producers also affects buying behavior of each other.

Decision Making and Sources of Information This producer receives advertisements by television and Internet. He believes partially on such information and also searches the veracity of this information at the local supplier, participating in field days and by interacting with other producers and technical organizations. He also believes that buying inputs is becoming more complex, because there are more options for purchasing inputs, more sales channels (retail, trading, cooperative, direct selling) and products with similar functions. This producer believes that there are differences between information from different local suppliers and relies partially on such information. Generally, his buying of inputs is influenced by technical representatives from a few local suppliers. Products and Suppliers The main expected benefits in purchasing inputs by this producer are quality with competitive price and product line extension. These attributes are associated to a few brand companies, exerting a degree of influence on buying behavior. For him, there are only brand differences in seeds, chemicals and equipment. Fertilizers and financial services brands are considered as more or less the same. In terms of prices, he believes that there are price differences between brands of seeds, chemicals and equipment. He does not consider himself loyal to any local supplier, although he buys only a few of them. The producer only buys products with proven performance by field day, confirmed information and other producers. Regarding to equipment, an extensive dealer network and replacement parts are considered more important than price and brand. For financial services acquired, the producer considers agility, price and volume as factors influencing his decision. Although the producer believes that the local distributors and salesperson influence his decision, he is not loyal to them. Exhibit 1 shows the results of the interview with the producer at Diamantino, State of Mato Grosso, Brazil.

Exhibit 1. Consolidated results of the interview with the producer at Diamantino. State of Mato Grosso, Brazil.
Diamantino Analytical column Main activities on the farm Level Decision Making Age Gender Time in agriculture activity Education Importance of agriculture in producer income Lives in the city? Distance to the farm 2011 Gross Sales Production Area Land structure Main Cultures Productivity Level of technology Irrigation Direct planting Use of transgenics seeds Crop Rotation and Crop Succession Production Financing Equipment Financing Credit Restrictions Production Commercialization Storage Systems Member of an Association and/or Cooperative What is the Influence of productivity on business management? How your farming operation may change over the next five years? Sources of advertising / media Do you trust the information provided by the media? Sources of technical information Decision Making and Sources of Information Do you trust the information provided by sources of technical information? For you, buying inputs is becoming more complex? There are differences between information from different local suppliers? Do you trust the information provided by your local supplier? Regarding to local suppliers, what influence your buying decision? Inputs Expected benefits Equipment Expected benefits Financial Services Expected benefits There are differences between brands of inputs? There are differences between brands equipment? There are differences between brands financial services? There are differences between prices of different brands of inputs? There are differences between prices of different brands of equipment? There are differences between prices of different brands of financial services? Loyalty to the local suppliers Loyalty to salesperson Results Planning and management activities, purchase of inputs and sale of production. Only decision maker 50 years old Male 17 years Agronomic Engineer 100% Yes, Cuiab - MT 180km between US$ 2.000.000 and US$ 3.000.000 3,700 hectares 100% of rented lands. soybeans and sorghum 2.820 kg/ha soybeans and 1.500 kg/ha sorghum low no yes no not frequently Barter operation Government funding and private banks. yes Barter operation and forward contracts no yes "The productivity is linked to income and investment in the farm" "Will increase, investing in machines and human capital" Television and Internet partially local supplier, field days, interaction with other producers and technical organizations. yes yes yes yes Technical representatives from a few local suppliers. quality with competitive price and product line extension Reposition parts and network yes yes no yes yes no no no

Producer Characteristics

Farm Characteristics

Risk and Business Management

Products and Suppliers

Producer at Lucas do Rio Verde Producer and Farm Characteristics This producer is a man of 55 years old, graduated in agronomy and the only responsible for planning and management activities, purchase of inputs and sale of production, being the primary decision marker of the farm. He lives in the city of Cuiab, the capital of Mato Grosso, at a distance of 360 kilometers from his farm. He is in farming for 26 years and agriculture represents 100% of his earnings. The production of his farm is based on soybean and rice in an area of 1.200 hectares. The 2011 gross sales of his farm were between US$ 2.000.000 and US$ 3.000.000, which classify him as large commercial producer, specifically in the State of Mato Grosso. This producer has high levels of productivity (3.420 kg/ha for soybeans and 6.000kg/ha for rice), high use of technology and 100% of proper lands. This condition creates a high level of investment in the farmlands. This producer hires specialized services of precision agriculture, purchase high technology equipment, utilize pivot irrigation and storage systems. He also has a strategy of crop rotation focusing in the long term business sustainability and goals of productivity. For him, the productivity is linked to choice and rotation of crops, the level of technology adopted and the monitoring of diseases. Risk and Business Management This producer has no credit restrictions and finances the production by his own resources. He does not realize barter operations with local suppliers. He does forward contracts with trading companies, and sells the production part before and part after harvest. This comfortable situation occurs due to the presence of storage systems (silobags) at the property, which allows his choosing the best time to market the production, increasing profitability. This structure reduces the risk of future price variations and gives more profit to the producer. The lack of barter operations in this farm business provides great freedom of choice in the purchase of inputs and the opportunity to buy cheaper products. When buying equipment and machines, he also uses government funding and private banks. This producer also takes part of an association and a cooperative. For him, the association is important because it creates benchmark and management tools, which he uses for better decision making. The cooperative is important for production marketing and it also provides services of grain drying. Decision Making and Sources of Information This producer receives advertisements by Internet and magazines. He does not believe on such information and also searches the veracity of this information through the local supplier technician, field days and product demonstrations, lectures, books and specialized magazines. He also believes that buying inputs is becoming more complex, because there are more options for purchasing inputs, more sales channels, products with similar functions and new products (micronutrients). This producer believes that there are differences between information from different local suppliers and relies partially on such information, but for him, this situation does not affect his buying decision, because he believes that he is responsible to search better information to make decisions. One factor that influences his buying decision is the infrastructure of the local supplier.
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Products and Suppliers The main expected benefit in purchasing inputs by this producer is performance. Regarding to equipment, brand and quality of service are more important than price. For financial services acquired, the producer considers agility, price and volume as factors influencing his decision. These attributes are associated to a few brand companies, exerting a degree of influence on buying behavior. One an exception cited is that the quality of fertilizers and financial services are not related to a specific brand, which does not influence in buying behavior. For him, the only brand differences are in seeds, chemicals and equipment. Fertilizers and financial services brands are considered as more or less the same. He is less loyal to the local supplier than the producer of Diamantino and Querncia. He is free to do transactions with other suppliers because he does not barter operations, i.e., he is not stuck in a package of products from a barter transaction. However, he is more loyal to the salesperson than the other producers, changing his local supplier when the salesperson moved to other company. In terms of prices, he believes that there are price differences between brands of seeds, chemicals and equipment. He is only loyal to the local suppliers of machines. Exhibit 2 shows the results of the interview with the producer at Lucas do Rio Verde, State of Mato Grosso, Brazil.

Exhibit 2. Consolidated results of the interview with the producer at Lucas do Rio Verde. State of Mato Grosso, Brazil
Lucas do Rio Verde Analytical column Main activities on the farm Level Decision Making Age Gender Producer Characteristics Time in agriculture activity Education Importance of agriculture in producer income Lives in the city? Distance property 2011 Gross Sales Production Area Land structure Main Cultures Productivity Farm Characteristics Level of technology Irrigation Direct planting Use of transgenics seeds Crop Rotation and Crop Succession Production Financing equipment Financing Credit Restrictions Production Commercialization Risk and Business Management Storage Systems Member of an Association and/or Cooperative What is the Influence of productivity on business management? Results Planning and management activities, purchase of inputs and sale of production. Only decision maker 55 years old Male 26 years Agronomic Engineer 100% Yes, Cuiab 360km between US$ 2.000.000 and US$3.000.000 1.200 hectares 100% of proper lands. Soybean and rice 3.420 kg/ha soybeans and 6.000kg/ha rice High Yes Yes "Yes, 60% of production" "Yes, it is strategic for the business" Own funding Government funding and private banks. No Forward contracts with trading companies, Spot Market Yes Yes The productivity is linked to choice and rotation of crops, the level of technology adopted and the monitoring of diseases Will increase. The strategy to increase productivity is precision agriculture and crop rotation. Internet and magazines No local supplier technician, field days lectures, specialized magazines, books Yes Yes Yes Yes, but this situation does not affect his buying decision The infrastructure of the local supplier Performance and quality Quality of service Agility and volume yes yes no yes yes no no Yes

How your farming operation may change over the next five years? Sources of advertising / media Do you trust the information provided by the media? Sources of technical information Decision Making and Sources of Information Do you trust the information provided by sources of technical information? For you, buying inputs is becoming more complex? There are differences between information from different local suppliers? Do you trust the information provided by your local supplier? Regarding to local suppliers, what influence your buying decision? Inputs Expected benefits Equipment Expected benefits Financial services Expected benefits There are differences between brands of inputs? There are differences between brands equipment? There are differences between brands financial services? There are differences between prices of different brands of inputs? There are differences between prices of different brands of equipment? There are differences between prices of different brands of financial services? Loyalty to the local suppliers Loyalty to the salesperson

Products and Suppliers

Producer at Querncia Producer and Farm Characteristics This producer is a man of 55 years old, graduated in agronomy and the main responsible for planning and management activities, purchase of inputs and sale of production, being the primary decision marker of the farm. However, he shares his decisions with a partner that helps in farm operations. He lives in the city of Rondonpolis, at a distance of 700 kilometers from his farm. He is in farming for 12 years and agriculture represents 80% of his earnings. The reason why his decisions are shared is because of the distance of his residence from the property. In this case, inlocus decision-making is necessary in a higher level than the producer could offer. The production of his farm is based on soybean and corn in an area of 1.750 hectares. The 2011 gross sales of his farm were between US$ 2.000.000 and US$ 3.000.000, which classify him as large commercial producer, specifically in the State of Mato Grosso. This producer has medium levels of productivity (3.330 kg/ha for soybeans and 5.400kg/ha for corn), medium use of technology and 100% of proper lands. This farm business has a curious situation: the choice of crops in the region of this producer is limited by logistical factors (transport and storage), which impede diversification into other crops. He only buys products for soybeans and corn. Risk and Business Management As well as the producer of Diamantino, this producer realizes barter operations with trading companies to finance production, exchanging the production for inputs, before harvest. For him, this option is less profitable, but it is his only alternative to market production, because there are no cooperatives in the region and he does not forward contracts. Another reason to user barter is that he has financial restrictions. When buying equipment and machines, he uses government funding and private banks. As well as the producer of Diamantino, he recognized that the barter operation makes him more loyal to the local supplier reducing his information search of inputs, affecting negatively his profitability and investment level. It is noteworthy that the barter operation is held by this producer due to his credit restrictions from banks and other financial agents being one of the few sources of production financing. This producer also takes part of an association. For him, the association is important because it assists in his risk management, gives support in technical issues, and provides orientation in rural credit and grain classification. Although he is not a member of a cooperative, the producer recognizes its importance in organizing buying pools, marketing large volumes and support with administrative tools. Decision Making and Sources of Information This producer receives advertisements by television, newspaper, Internet and email. He believes partially on such information and also searches technical information via local supplier, specialized consulting, association, product experimentation and field days, research and technical agencies and other producers. Unlike the other two producers, he does not believe that buying inputs is becoming more complex, because there are more research information, greater exchange of experience and evolution of the products available in the market.
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This producer believes that there are differences between information from different local suppliers and relies partially on such information. He believes that this difference influence on his buying behavior. Factors that influence his buying decision are infrastructure, product line extension, commercial attitude, technical assistance and relevant information. Products and Suppliers The main expected benefit in buying inputs by this producer is price. Regarding to equipment, price is more important than performance and convenience. For financial services acquired, the producer considers agility, price and volume as factors influencing his decision. These attributes are associated to a few brand companies, exerting a degree of influence on buying behavior. As well the other two producers, one exception cited is that the quality of fertilizers and financial services are not related to a specific brand, which does not influence in buying behavior. For him, the only brand differences are in seeds, chemicals and equipment. Fertilizers and financial services brands are considered as more or less the same. In terms of prices, he believes that there are price differences between brands of seeds, chemicals and equipment. He is more loyal to the local supplier than the producer of Diamantino and Lucas do Rio Verde, buying only from one local supplier. Exhibit 3 shows the results of the interview with the producer at Querncia, State of Mato Grosso, Brazil.

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Exhibit 3. Consolidated results of the interview with the producer at Querncia. State of Mato Grosso, Brazil.
Querncia Analytical column Main activities on the farm Level Decision Making Age Gender Time in agriculture activity Education Importance of agriculture in producer income Lives in the city? Distance property 2011 Gross Sales Production Area Land structure Main Cultures Productivity Level of technology Irrigation Direct planting Use of transgenics seeds Crop Rotation and Crop Succession Production Financing Equipment Financing Credit Restrictions Production Commercialization Storage Systems Member of an Association and/or Cooperative What is the Influence of productivity on business management? Results Planning and management activities, purchase of inputs and sale of production. Main decisor, sharing the decision with a manager 55 years Male 12 years Agronomic Engineer 80% Yes, Rondonpolis 700km between US$ 2.000.000 and US$ 3.000.000 1.750 hectares 100% of proper lands soybeans and corn 3.330 kg/ha soybeans and 5.400kg/ha corn Medium No Yes 90% for corn; 100% for soybeans Yes Barter Operations Government funding and private banks. Yes Via Trading Company No Yes Is directly linked to the ability of investment business. Due to weather issues, the producer lost 10% of productivity compared to previous crops and now have operational problems. Will increase. He bought better equipment and are organizing to return to the default of 60 sacks of soybeans. The difficulty is accessing credit. Television, newspaper, Internet and email Partially Technical information via local supplier, specialized consulting, association field days, technical agencies and other producers. Yes No Yes Yes infrastructure, product line, commercial attitude, technical assistance and relevant information Price Price Agility, price and volume Yes Yes No Yes Yes No Yes No

Producer Characteristics

Farm Characteristics

Risk and Business Management

How your farming operation may change over the next five years? Sources of adverstising / media Do you trust the information provided by the media? Sources of technical information Decision Making and Sources of Information Do you trust the information provided by sources of technical information? For you, buying inputs is becoming more complex? There are differences between information from different local suppliers? Do you trust the information provided by your local supplier? Regarding to local suppliers, what influence your buying decision? Inputs Expected benefits Equipment Expected benefits Financial services Expected benefits There are differences between brands of inputs? There are differences between brands equipments? There are differences between brands financial services? There are differences between prices of different brands of inputs? There are differences between prices of different brands of equipment? There are differences between prices of different brands of financial services? Loyalty to the local suppliers Loyalty to the salesperson

Products and Suppliers

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Influence of the external ambient This study identified the main determinants of buying behavior of three Large Commercial Producers of grains in Mato Grosso, Brazil. These determinants are mostly intrinsic to the business model of the producers and interact in complex ways with the market and competitive ambient, causing producers to have specific and individualized needs. However, many of the variables present in the external ambient were not considered in this work. The general environment and market characteristics (structure, dynamics and transparency) were considered in the work of Kool (1994). In this work, we found that the variables of weather, pests and diseases affect the buying behavior of these producers, as well as the land prices, environmental constraints and regional logistics. We suppose that these variables can be added to those identified by Kool (1994), in order to identify what are their impacts on growth strategies and in farm business management.

Conclusions
In this paper we developed familiarity with the nature of farms business model and its influence on buying behavior of grain producers in the State of Mato Grosso Brazil. Main findings We identified in this study the determinants of buying behavior of three Large Commercial Producers of grains in the Estate of Mato Grosso, Brazil. Our findings are related to the Producer and Farm Characteristics, Risk and Business Management, Decision Making and Information Sources, Products, Suppliers and its impact on buying behavior of studied farmers. We described these features below. Regarding to the Characteristics of the Producer, the main determinants of buying behavior of these three producers are the activities they perform in the business, level of engagement in decision making, education, presence of buying office, age and time in activity. Regarding to the Characteristics of the Farm, the main determinants of buying behavior of these producers are the size of the farming operation, variety of crops, productivity and profitability, land leasing, crop rotation and crop succession. Highlight for land leasing which negatively influences the long-term investments in agricultural business, especially in purchasing of fertilizers and crop succession. Regarding to the Risk and Business Management the main determinants of buying behavior of these producers are risk aversion, sources of financing costs of production and machinery, forms of production commercialization, level of complexity of the purchase, professionalization, presence in cooperatives and associations and credit restrictions. Regarding to the Decision Making and Sources of Information the main determinants of buying behavior of these producers are sources of information (media/advertising and technical), the quality of information and external influence of the local supplier in the buying center. Regarding to the Products the main determinants of buying behavior of these producers are expected benefit, involvement in the purchase and brand influence. Highlight to the lack of perceived difference between brands of fertilizers and financial services.

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Regarding to the Local Suppliers the main determinants of buying behavior of these producers are loyalty to the local supplier and salesperson, the quality of information of the local supplier and salesperson attributes. Although we must not generalize these determinants to other producers and farm business, we built a consolidated determinants buying behavior framework with all of our findings, in a way to simplify the analysis and to provide insights for future researches, as shown in Exhibit 4. Exhibit 4. Consolidated determinants of buying behavior framework of the studied producers.
Producer Characteristics Activities undertaken by the producer Buying office Level of Education Age Level of professionalization Level of involvement in decision Time in activity Distance from the residence to the property Importance of agricultural activity in producer's income Influence of other producers Family succession Farm Characteristics Land Leasing culture produced Productivity and profitability Crop rotation Succession of crops Size of the activity Precision Agriculture Risk and Business Management Risk aversion Sources of funding for purchase of machinery Sources of funding for production costing Form of market production Level of complexity of the purchase Level of professionalization Presence in cooperatives and associations Decision Making and Sources of Information Sources of information Products and Suppliers Expected benefit

Quality of information of involvement in the the local supplier purchase External influence in brand influence buying center loyalty to the local supplier Other producers and salesperson, quality of information of the local supplier salesperson attributes

Age of machinery and Credit constraints equipment Direct Planting Use of Transgenic Use of irrigation Future changes in production Hiring activities of third parties Level of contact with the technical bodies of the sector Warehouse presence on the farm Use of services of local suppliers logistics and storage

Insights for future researches In this paper, we identified and analyzed the determinants of buying behavior of three grains producers in the State of Mato Grosso and its relation with the buying of inputs, capital goods and financial services. These results may help suppliers market to producers and future quantitative researches, a study as well as the Large Commercial Producer Surveys in the U.S and in Argentina, realized by Purdue University and Universidad Austral. Another future quantitative research we suggest is to statistically test the impacts that the determinants that we have found have on buying behavior of a large number of farmers. What are the correlations? Which determinant is the strongest? Are these factors really affecting the buying behavior of all Large Commercial Producers of grains, in the State of Mato Grosso, Brazil? Regarding to other type of farm business (as sugar-cane, orange or livestock production) are they similar? Where is the difference? The most successful companies are those that adapt their strategy to the customer needs proactively. Understanding the customer's needs, values, buying behavior and decision making process are
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central to any marketing strategy. This process becomes the basis for the development of products and services, design, pricing, distribution and effective media. In this sense, input suppliers can be assisted by research of the determinants of buying behavior of farmers as a way to identify, target and assist to deliver a differentiated value proposition to these producers, generating value for the input supplier and rural production segments.

References
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Silva, A. P. S., Scare, R. F., Casanova, A. C. P. Anlise do Processo de Compra do Consumidor Agropecurio. (2008). 47th Congress of the Brazilian Society of Sociology, Rural Economics and Administration (SOBER), Rio Branco, 2008. Strategic Management Advisory Board of the Ministry of Agriculture and Livestock and Supply Mapa (2010) Brazilian Agribusiness Projections Report: 2010/2011 2020/2021.

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