More Rain, Greater Efficiency Yield Bumper Corn Crop in Argentina

Heavy rains, biotechnology and greater efficiency will mean a record corn harvest in Buenos Aires.

After a dismal 2008 marred by drought and dramatically reduced output, corn farmers in Buenos Aires finally have something to celebrate. Bloomberg reports today that “Argentina, the world’s second-largest corn exporter, may increase output by more than 42 percent this year from previous estimates as spring rains boost yields to a record.”

While officials were forecasting 12 million tons of corn production as recently as December, that estimate has grown to 17 million tons, of which 9 million tons (52%) would be available for export.

Given Argentina’s location in the Southern Hemisphere and reverse growing season, corn farmers have a unique, wait-and-see advantage, according to the USDA’s Economic Research Service: “Farmers (in Argentina) plant their corn after the size of the U.S. crop is known, providing a quick, market-oriented supply response to short U.S. crops.”

The local harvest begins next month, and ample rains combined with greater efficiency in planting and harvesting are both key factors in this year’s record production. When times got tough, many Argentine farmers (like the one in this Monsanto video) turned to biotechnology to improve crop yields.

While Argentina remains the world’s second-largest exporter of corn, the USDA notes “Brazil, Ukraine, Romania, and South Africa have had significant corn exports when crops were large or international prices attractive. (Bloomberg Article)

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