Nov 02, 2009
Rural Unrest Returns To The Soybean Fields Of Eastern Paraguay
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
After two recent kidnappings in Paraguay, farmers are concerned that rural unrest may be returning to the soybean fields of eastern Paraguay. In early October, a large landowner was kidnapped by a radical group called Exercito do Povo do Paraguai - EPP (Paraguay's Peoples Army) and last week, a young child of one of Paraguay's largest soybean producers was kidnapped and later released.
The rural workers of Paraguay have been pressing for land reform for many years, but their protests took on a much more violent tone after the 2008 election of Paraguay's president, Fernando Lugo. One of the main campaign themes of President Lugo, a former Catholic Bishop, was "land for landless poor" After assuming office in August of 2008, various landless groups in Paraguay saw their opening and took the rural roads in a violent effort to expel Brazilian soybean farmers.
Brazilians have been raising soybeans in eastern Paraguay for several decades, but these squatter groups feel that the Brazilians purchased their land illegally. For their part, the Brazilians reply that they purchased the land legally and they have clear title to the property. During the 2008-09 planting season, many soybean farms were invaded, machinery was destroyed, and if farmers wanted to move between various farms, they needed to be escorted by armed guards. As a result, the soybean acreage in Paraguay last year was smaller than anticipated and less fertilizers and chemicals were used to produce the crop. A severe drought hit Paraguay in early 2009 and the soybean crop ended up being severely affected.
The current unrest raises concerns once again that the soybean farmers in eastern Paraguay may again be harassed while they attempt to plant their 2009-10-soybean crop. A local co-op reported that farmers are only working during daylight hours for fear of attacks at night. They are also very cautious about moving their machinery between farms and as a result, the 2009-10 Paraguay soybean crop might end up being planted later than what is recommended for maximum yields.
In the bigger picture, Brazilian farmers are wondering if they should continue investing in their Paraguay operations not knowing if they will be able to stay in the country long-term. For his part, President Logo has condemned the kidnappings, but has done little to stop further attacks.