Argentina’s Drought Hits Economy Hard, Farmers in Trouble

According to a paper released on Thursday by scientists, Argentina's extremely high temperatures linked to climate change have made the country's record drought, which has affected its agricultural regions since last year, worse.

The World Weather Attribution (WWA) has said that while climate change does not reduce rainfall directly, it creates extremely high temperatures which decreases water availability and exacerbates existing droughts.

The drought in Argentina has had huge consequences on the global food markets. This has forced farmers to cut down on their harvest projections and greatly reduced the grain supply. This in particular has had big repercussions because Argentina is the world’s top exporter of soy oil and meal, the No. 3 for corn, and a major wheat and beef supplier.

While the global market is reeling, Argentina itself has been greatly damaged as well. It has threatened the already delicate economy; making Argentina unable to meet debt repayments, fueling inflation, and sending the country into deep fiscal debt. Argentina is now unable to build up a much-needed reserve of dollars.

“The worsening drought has created a disaster in Argentina,” said Cristian Russo who heads the agricultural estimates at the Rosario grain exchange. The organization cut down its soybean harvest estimate; the lowest that it has been in 14 years.

He further added that the total agricultural estimates and harvest would be the worst that the country has seen in 20 years.

This drought has been linked to a La Nina weather pattern- the third in a row and could still progress to create more severe impacts, he added. The cuts in soy and corn estimates are not final; the worse could still be yet to come. Argentina’s wheat harvest has also witnessed a halving of their wheat harvest due to the drought.

According to a report, Argentinian farmers have delayed planting and even abandoned crops. Andres Betiger, the farmer on the verge of declaring bankruptcy, drives 52 kilometers (32 miles) to fetch water with a tank and a decrepit tractor that frequently breaks down.

"Things are horrible; we don't have enough to stop things for four or five days, and we don't have much. For the animals to drink, we essentially haul water every day,” said Betiger, 41.

Another farmer, Gustavo Giailevra, who has already endured severe droughts, has had a difficult time making a living. Due to the severe lack of rain, he has lost the majority of his cotton and maize harvests in addition to one-third of his 900 head of cattle. The overall loss of cattle in the country has threatened to increase the beef supply and chase the prices upwards.

Farmers are now resorting to planting drought-resistant cotton in place of corn, soy, and wheat to gain back their income.

While the government has attempted to provide relief, by rapidly rolling out tax measures- the depleted economy has limited power. Farmers do not find the relief measures sufficient.

The lagoon of El Bonete in the town of Vera has completely dried up, taking with it the ecology in and around it. Towns have gone for months without the main's water.

Julio Calzada, the head of economic research at the Rosario exchange stated that the loss due to the drought could round up to $10.5 billion; citing a decline in exports.

He added that this would result in an approximate $8 billion loss in exports for Argentina and a loss of $3.5 billion in government revenue, damaging already low levels of currency reserves.

"Income from rural areas is important to the national economy," he remarked. "This (the drought) is the biggest economic issue, we have ever faced.”