Jan 14, 2010

Heavy Rains Continue To Take Toll On Small Farmers In Rio Grande do Sul

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Heavy rainfall in Rio Grande do Sul continues to take a toll on the farm families in the state especially producers of rice, tobacco, and edible beans. The Federation of Agricultural Workers in Rio Grande do Sul (Fetag) estimates that over 36,000 small farmers suffered losses to their crops and in some cases their buildings. Fetag estimates that 24,000 of these small farmers raise tobacco. The total losses in the agricultural sector are estimated at R$ 1 billion.

Of the major grain crops, rice has been the crop most severely affected. According to Conab, Rio Grande do Sul accounts for 63% of Brazil's total rice production and the heavy rains during November prevented rice producers from planting all of their intended rice acreage. The rice that was planted was planted much later than normal, which will negatively impact yields, which are expected to fall 950 kg/ha compared to last year. The Rio Grande Institute of Rice estimates that rice production in the state will be down 12% to 15% due to the reduced acreage and lower yields. This would translate to approximately a one million ton reduction compared to the 8.0 million tons produced in 2008-09. Some rice producers are still attempting to plant rice, but are having difficulty finding enough seed of early maturing rice varieties. The late-planted rice also will be harvested later than normal and the rice harvest in the state is expected to extend into the month of May.

The state of Rio Grande do Sul is Brazil's largest tobacco producing state as well and the wet weather severely affected the tobacco crop. The continued high humidity is also affecting the curing of the leaves and some of the tobacco sheds were damaged by the heavy storms. The total production of edible beans in the state is also expected to fall from last year's level.

Farm organizations in the state are petitioning the federal government to help out with direct payments in the hardest hit areas to repair needed infrastructure including roads, bridges, and public buildings. They are also requesting low interest loans for small family farmers who lost a majority of the crop production. Payments on some of the production loans taken out by farmers to plant their 2009-10 crops are set to start at the end of January and farm organizations are requesting that these payments be postponed for at least a year, giving farmers time to recuperate from their losses.

Not all the crops in the state have affected equally. The corn crop in Rio Grande do Sul was generally planted before the onset of the heavy rains and the corn yields are expected to be good. The planting of the soybean crop in the state was delayed due to the rains and farmers did not finish planting all their soybeans until the second half of December. These late-planted soybeans will need an extended rainy season in order to reach their full yield potential.