Argentina’s farmers devastated by drought
2023.02.16 08:10
Argentina’s farmers devastated by drought
By Ray Johnson
Budrigannews.com – In the midst of the South American nation’s worst drought in sixty years, which has damaged cattle herds and decimated soy, corn, and wheat crops, rancher Andrés Betiger is fighting to save his farm in the Argentine town of Ciguena.
Betiger travels 52 kilometers (32 miles) with a tank and a shaky tractor that frequently breaks down to get water. This is a reflection of how the dry weather since last year has affected farmers, who have delayed planting and even abandoned crops.
“Things are bad, we don’t have much, and we can’t stop things for four or five days. “We are literally hauling water for the animals to drink every day,” Betiger, 41, who is considering declaring bankruptcy, stated.
He added, “It hurts and scares me.” It is already physically and financially unsustainable.
The world’s largest exporter of soy oil and meal, Argentina’s drought has a significant impact on global food markets, forcing farmers to reduce harvest forecasts and reducing grain supply from the No. 3 for corn and a significant supplier of wheat and beef.
Argentina’s ability to accumulate much-needed dollars reserves is harmed as a result, posing a threat to a fragile economic revival and rendering the government unable to meet debt repayments in the face of spiraling inflation and a significant fiscal deficit.
According to Cristian Russo, head of agricultural estimates at the Rosario grains exchange, “in Argentina this drought situation has created a perfect storm.” This month, the Rosario grains exchange decreased its soybean harvest estimate to the lowest level in 14 years.
He added that the impact of the drought, which is linked to the third consecutive La Nina weather pattern, could still get worse, which could result in further reductions in the outlook for soy and corn. The drought had already reduced the wheat harvest by half.
Russo stated, “There are more reasons to be pessimistic and think that the numbers are going to continue to collapse,” adding that the harvest was shaping up to be the worst in twenty years.
“This will be a crisis unlike any other. That suggests that numerous producers will fail.
Gustavo Giailevra lifts the head of a pregnant cow that is lying still in the heat in another dusty Sante Fe field to get it to drink. Although he does not believe she will survive, he wishes for her to die “decently.”
Giailevra, like many other farmers, has seen his livelihood devastated over the past year due to severe droughts. Due to the severe lack of rain, he has lost most of his cotton and corn crops, along with a third of his 900 cattle.
The calves bleat until they die, which you can hear. “It’s terrible,” the 63-year-old told Reuters at his farm, where the water reservoirs he had dug have all dried up, necessitating the truck transportation of any remaining water.
Since many farmers in the area claim to have lost early-sown corn, wheat, and soy, they have planted more drought-resistant cotton in their fields to recoup their losses. Numerous cattle have been lost, posing a threat to the supply of beef and driving up prices.
Although the state’s coffers are empty, the government has implemented tax relief measures for farmers. Reuters talked to farmers who said the measures were just “patches.”
The species that used to live in and around the El Bonete lagoon and the nearby town of Vera have all disappeared. One town was without water from the mains for more than a month.
According to Julio Calzada, head of economic research at the Rosario exchange, the drought could cost producers approximately $10.5 billion in economic losses, primarily as a result of a decline in exports.
He stated, “Argentina would lose about $8 billion worth of exports,” adding that this would result in a loss of approximately $3.5 billion in government revenues, putting pressure on currency reserve levels that were already low.
He stated, “The national economy is dependent on income from rural areas.” The primary issue facing the economy is this drought.
