Dec 02, 2009
Losses Due To Severe Storms Continues To Rise In Rio Grande do Sul
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The losses keep mounting in the state of Rio Grande do Sul after the area was hit again by heavy storms earlier this week. For the last two months, violent thunderstorms have repeatedly ripped across the state causing widespread destruction. The hardest hit area of the state is the northwest quarter where much of the soybeans and corn is grown. State officials estimate the total damage from the storms at R$ 4.5 billion. This includes losses to private structures, public structures, public utilities, and agricultural losses as well. Ninety eight municipalities have declared emergencies with 17,000 people being displaced, 16,000 houses have suffered damage, 300 houses have been destroyed, 30 public buildings have been damaged (mostly schools), tens of thousands are without electricity, and the flood waters have washed away rural roads, highways and bridges.
As far as agriculture is concerned, these storms have affected the wheat, rice, soybean, and corn crops grown in the state. Normally, farmers in the state would be wrapping up the wheat harvest by now, but unfortunately 30% of the crop remains to be harvested. The yield and the quality of the wheat continues to be compromised by the wet weather. Any remaining wheat in the field will be very poor quality and probably will be only suitable for livestock feed.
Thirty percent of the rice crop in the state remains to be planted, but the optimum planting window for rice closed about 10 days ago. If farmers still want to plant rice, it must be early maturing rice that has a lower yield potential. Additionally, some of the rice that had been planted will need to be replanted if the fields dry out in time. Estimates are that at least 10% of the estimated rice crop has already been lost.
Only about 40% of the soybeans in Rio Grande do Sul have been planted compared to a normal of approximately 65%. A significant portion of the soybeans in the state are double cropped after wheat, but if they cannot harvest the wheat, they cannot plant the soybeans. November would be the ideal month for planting soybeans in the state and soybean yields start to decline if the planting is delayed until December. Over half of the soybean crop in the state will be planted much later than normal this year.
When commercial soybean production started in Brazil in the 1960s, the state of Rio Grande do Sul was the number one soybean producing state in Brazil. Over the decades, soybean production moved north in Brazil and now Rio Grande do Sul has slipped to third place behind Mato Grosso and Parana. Farmers in Rio Grande do Sul plant 17% of Brazil's soybean acreage so this state needs to be monitored closely for any further delays in soybean planting.