Argentina declares drought crisis

[depakid]

Some 800,000 head of cattle have been lost over the past year.
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Argentina has declared an agricultural emergency as it confronts one of the worst droughts in decades. President Cristina Fernandez said the decree would defer tax payments for thousands of farmers for a year.

Farmers' leaders had been calling for action to tackle the drought, which is estimated to have caused losses of at least $4bn (£2.8bn). Argentina is one of the world's biggest producers of soya, grains and beef but has been hit by falling demand.

Several regions of Argentina, including the provinces of Buenos Aires, Cordoba, La Pampa and Entre Rios, have been hit by the worst drought since at least 1971, according to the country's national weather service. Since March last year, rainfall has been significantly below normal. Among the effects, some 800,000 head of cattle have been lost, while in Entre Rios some 90% of the wheat crop has been ruined.

The worst affected area is the Pampas region, where winds have been whipping up the dry soil and coating huge swathes of barren land. Under the emergency measures, producers who have lost at least half of their harvest or herd will be exempt from paying most taxes for a year.

"It is a great effort by all Argentines, because no other economic sector is receiving these type of benefits," said President Fernandez as she announced the emergency decree.

More: http://news.bbc.co.uk/1/hi/world/americas/7852886.stm

[Tashca]

1. This article is dated 1-27

From what I heard yesterday the Pampas region received significant rainfall the few days previous to yesterday. Some areas received up to 3 inches. It sounded like the worst hit areas were pretty much covered with some precipitation and more was in the forecast. I've been through enough dry weather to know that forecasts don't mean a whole lot until the event happens....if it happens.
I know the world grain markets lowered on the news....I would guess pastures will take much more rain to even begin their regrowth.
This particular drought was just beginning to hit world market prices based on the crop stage. The next month or so will tell the story.