Argentina's 'unprecedented' drought pummels farmers and economy
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[March 10, 2023]
By Lucila Sigal and Eliana Raszewski
BUENOS AIRES (Reuters) - A historic drought ravaging Argentina's crops
is deepening the grain exporting giant's economic crisis, crushing
farmers across the Pampas, heightening default fears and putting at risk
targets agreed with the International Monetary Fund (IMF).
The South American nation, the world's top exporter of processed soy and
No. 3 for corn, is in the grip of it worst drought in over 60 years,
which has led to repeated sharp cuts to soybean and corn harvest
forecasts.
Those were cut again on Thursday by the Buenos Aires grains exchange
after the Rosario exchange slashed its soy production outlook to 27
million tonnes, the lowest since the turn of the century, when far less
of the crop was planted.
"We are facing an unprecedented climatic event," Julio Calzada, head of
economic research the Rosario exchange, told Reuters, adding farmers
were facing losses of $14 billion and 50 million tonnes less of grain
output across soy, corn and wheat.
"It's unprecedented that the three crops fail. We are all waiting for it
to rain," he added.
The drought is a huge blow for Argentina. It comes as the country heads
for crunch general elections in October, is battling 99% inflation and
faces a wall of local and international debt repayments to bondholders
and the IMF.
![](http://archives.lincolndailynews.com/2023/Mar/10/images/ads/current/humanesociety_sda022411.png)
With grains being the country's main export, plans to rebuild depleted
foreign currency reserves are stalling, prompting talks with the IMF to
ease reserve accumulation targets for the year. Analysts have also cut
the GDP outlook.
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![](../images/031023PIX/news_h69.jpg)
A general view of a farm shows dried
corn and cotton that was planted where corn was ruined by the
weather, amid Argentina's worst drought in sixty years, in Tostado,
northern Santa Fe Argentina February 8, 2023. REUTERS/Miguel Lo
Bianco/File Photo
![](http://archives.lincolndailynews.com/2023/Mar/10/images/ads/current/graue_lda_preowned_Buickencore_011323.jpg)
"The situation is dramatic," said Luis Zubizarreta, head of the
commercial ports chamber and soybean industry body. "It impacts the
country's entire economic situation and the income of foreign
currency at a very critical moment for Argentina."
He added the flow of grains at ports was at historically low levels
"because there is no merchandise".
The drought affecting Argentine farmers, which has been exacerbated
by high temperatures linked to climate change, goes back in some
areas to May 2022. The country has suffered at least eight heat
waves in the 2022/23 season.
The grains exchanges have warned that soy and corn forecasts could
fall even further if no rains come. The Rosario exchange's soy
forecast is already at the lowest since the 1999/2000 season and the
expected yield the worst since 1996/97.
"From what we expected at the (start of the campaign) to today's
situation, I don't know if we will produce half of it," said Miguel
Calvo, a soybean farmer in central Cordoba province.
"I thought all evils were over and these last 8-10 days have been
the coup de grace due to the heat and lack of rain."
(Reporting by Lucila Sigal and Eliana Raszewski; Additional
reporting by Maximilian Heath; Writing by Valentine Hilaire; Editing
by Adam Jourdan and Sandra Maler)
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