Argentina to invest $7 billion in agricultural irrigation

Date:04-10-2014

The Government of Argentina, one of the major food exporters, said recently that it will invest approximately $7 billion in doubling the area of irrigated agriculture, which would then create 4.3 million hectares by 2030.

The plan aims to increase productivity of 2.2 million hectares that currently have no irrigation by 50 percent, after several droughts in recent years have affected the production potential of the country, the world's largest exporter of oil and soybean meal and the third of corn.

"The approach we propose, changes the strategic way how we see water. The goal is to duplicate the irrigated surface of our country, which implies the incorporation of technology, knowledge and use of knowledge and experience necessary" said Agriculture Minister Carlos Casamiquela in a statement.

The total number of hectares under irrigation in the current season is 2.1 million, which represents 6.1 percent of 34.2 million acres used for agriculture in the 2013/2014 season.

4.3 million Irrigated hectares referred to in planning for 2030; represent 12.5 percent of the planted area in the season, which was caused by a prolonged drought in December and January, which reduced the yield of corn sown early.

In 2008/09, a severe drought dramatically reduced crops of soybeans and corn, the two main agricultural products from Argentina.

The Ministry of agriculture will invest more than 56 billion pesos ($7 billion) in the project, of which the central agricultural region would receive around $3.6 billion, according to a recent statement.

The northern provinces of Argentina, usually the most affected by the water shortage, but hold a smaller share of agricultural production, would obtain an approximate investment of $3.2 billion.

"143,000 hectares will be incorporated to the annual production matrix and the estimated annual production is that there will be an increase in the production of at least 50 percent in areas with design on the pampas region (the richest agricultural area)", according to the Ministry of Agriculture.

The announcement comes at a time when farmers begin to harvest the first batches of soybeans and corn of the 2013/2014 harvest. The Government said recently that the dry weather in the coming days would favor the harvest of both products and prevent further damage caused by disease.

The rains, which started from the second half of January - after a very dry and warm early summer - and continued this month, resulted in excess water in different agricultural areas, damaging the rural activity, which favored the development of fungal diseases.

The Rosario Board of trade – which operates the leading grain market of the country - estimated that the soybean crop will reach the record 54.7 million tons and cereal, with 22.7 million tons.