Argentina Crop Updates 2022- Part 1

Argentina Crop Updates 2022- Part 1 (5)

Argentina is a significant exporter of wheat, soybean, and meat and is a major wine and wool producer, though most of its wine is for domestic use. Despite being a significant source of export revenue, agriculture makes up a small amount of the country’s GDP and employs a tiny portion of the workforce.

Current Status of Argentina Crops and Farmers’ Stand in the Market

According to studies, 30 million acres of Argentina land represent crop cultivation. Today, the three main crops which make up 82% of the total crop area are soybean, wheat, and maize, and the country is one of the biggest producers and exporters of these crops.

With total annual rainfall ranging from 600 mm to 1400 mm across the crop-producing regions, Argentina has a climate conducive to developing rain-fed crops. Despite the possibility of more irrigation, minimal land is already irrigated.

In the southern Pampas of Buenos Aires and La Pampa, where cattle are raised, the principal crop is wheat, Argentina’s largest crop by harvested land area. The notable main crops in the north are wheat and corn.

Argentina’s sugarcane-growing region comprises the northern provinces of Tucumán, Salta, and Jujuy. Citrus orchards were established in those provinces as a buffer against the erratic sugar market.

Salta and Jujuy are the tobacco-growing regions. Between the Bermejo and Dulce rivers is where cotton is grown best, and it is utilized majorly by the textile sector.

How Argentina Weather Affects Farmers and Crops

Wheat planting in Argentina is routinely planned, as are other crops. In the Pampas, the most significant agricultural region in the nation, wheat has recently been given a higher part in crop rotations.

According to studies earlier this year, Argentina’s crop season wheat planting may surpass the 6.75 million hectares of wheat grown in 2021.

Additionally, the planting in 2022 might surpass the previous decade’s most excellent planting. Given the resources available, an increase in wheat area in Argentina is conceivable, but it will rely on the relative importance of the various factors affecting farmers’ planting decisions.

Argentina exports 60–65%of its wheat production, and 5% of the total value of Argentine exports is made up of wheat. The Argentine trade balance depends heavily on wheat exports and other agricultural commodities.

With the participation of exporters, flour mills, and grain elevators and under the government’s watch, the Argentine wheat export market is a private self-regulatory system.

According to a weather report by the Buenos Aires grains market before planting, which had begun in May, the 2022-2023 wheat harvest in the essential agricultural belt growing region was projected to benefit from a strong rain forecast and cool temperatures during the austral autumn in Argentina.

The Argentine wheat planting area for 2022–2023 is expected to be 6.5 million hectares, down 200,000 hectares from the previous season, which produced a record harvest of 21.8 million tons.

Argentina’s leading agricultural region is Buenos Aires, and the province’s southeast is where most of the nation’s wheat is grown. However, the Buenos Aires exchange also cautioned that producing regions far from the Atlantic and the Parana River basin, particularly in the southwest of Buenos Aires, could experience dryness.

Because of the La Nina climate trend, which lowers rainfall in Argentina’s major agricultural regions, soybeans and corn suffered considerable losses in the current 2021-22 cycle.

According to the forecast, La Nina will transition into a neutral cold state throughout the upcoming grain season, which for Argentina often translates to increased regularity for rainfall patterns.

The amount of land planted for wheat is declining due to the current dry circumstances in Argentina’s Northern provinces. The crop’s yield development may hamper if La Nina persists during the crucial months of September and October.

Argentina produces and exports the most wheat in South America, contributing around 8% of all wheat exports worldwide. The region previously experienced significant soybean losses in 2020–2021 due to La Nina.

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