Today, we shed light on some worrisome signs for Brazilian farming. Economy Minister Paulo Guedes changes his tone and will ask the IMF for help. And the financial health of Brazilian listed companies.
Lack of rains put farming at risk
As if the Covid-19 pandemic hadn’t given enough reason for concern already, Brazilian farmers have an additional worry: a historic water deficit. A study released yesterday by the National Water Agency analyzed rainfall in cultivated areas between 2012 and 2017 and observed a water deficit of 37 percent — 30 percent during the most critical stages of crop development, and 7 percent close to harvest.
- Ninety percent of Brazil’s agricultural lands use dryland farming — which relies almost exclusively on rainfall and underground water.
Why it matters. Agribusiness accounts for 21 percent of the Brazilian GDP — be that directly or indirectly.
Landmark. According to Thiago Fontenelle, who leads the research, the study places Brazil at the world’s vanguard, as few countries are capable of accurately assessing how much water dryland farming consumes. The research will help calculate water deficits in each region or municipality, allowing authorities to map areas in greater climate risk and elaborate public policies for drought periods.
Crops. Corn...