Situation/weather: Hotter and dryer than normal conditions have been experienced during September to November. The irregular rains have resulted in low water levels on the Paraguay River and its tributaries, which have disrupted barge traffic and water pumping for rice producers. We had to face several restrictions periods of water pumping (either whole or partial) from the river imposed by the authorities.

However, thanks to our artificial lake of 480 ha we could mitigate the problem and continue to irrigate the fields for the rice plants under irrigation (stage sowing). Among all our neighbours, we are the only one having this water reserve as you can see on the aerial view of the area. Depending the level of our river, we could also secure an authorization to pump alternately (10 hours a day).

The rainfall in Paraguay has now increased a bit, but all crops farmers are still concerned about the irregular nature of the rains.

Market: The entire region is currently in crisis rather driven by the economic situation or political (Chile, Colombia, Peru, Argentina, Bolivia as well as Brazil). Brazil currency reached in November his historical lowest level against the US dollar. Knowing that around 90% of the Paraguayan rice production goes to Brazil, very low opening prices have to be expected for this season. Paraguayan producers are also worried about the change in administration in Argentina (exports are barged down the Parana Rive to ports in Argentina). The prior administration of Mrs. Kirchner leveed a tax on crops when they transited through Argentina and farmers are concerned that the tax will be reinstated once again under the new administration.

Production: 1,250 ha are under irrigation and the sowing of 350 ha more has been completed. The intense uniform green colour of the crop shows that water is well distributed, and that the nitrogen applied is being well used by the plants. The 1^st plots sowed are now in blooming stage and you can see some aerial application of fertilizer performed in the latest plots sowed.

Rice fields under irrigation

We have registered some small rains over the two first weeks of October which helped the river to recover a bit and served as well for the development of the seeds in the 1^st block sowed end of August (Block G). Meanwhile, as the river is low, we had to adjust optimal irrigation level of the fields already in growing stage by pump water from our reservoir. So, any rainwater helps to refill the reservoir.

The intense uniform green colour of the crop shows that water is well distributed, and that the nitrogen applied is being well used by the plants.

Paddy crop is strongly influenced by water supply and water should be kept standing in the field throughout the growth period. Continuous flooding helps ensure sufficient water (elimination of moisture stress and favourable micro-climate to crop production) with greater availability of nutrients such as phosphorus, iron and manganese and control weeds.

2^nd stage surface (430 ha of paddy rice) will start to be irrigated by mid-October. You can see some emerging seeds taking benefit from the natural irrigation supplied by some rainwater.

Last week of October, we are going to sow another block of around 240 ha. (Block E – stage 3). Then, block D and C are going to be sowed at final stage, subject to water availability (level of the river) as all the other fields will require water at the same time but not with the same distribution, and pumping has a cost. So, we should have a 4 stages sowing.

We have also finished to refresh the master house. The roof was particularly affected by the torrential rains registered in May in the country (please see post Mayo 2019).

After having sowed our 1^st stage surface, we are about the restart sowing of stage 2 (430 ha of paddy rice). Land has been prepared and will be sowed during the 1^st week-end of October.  Our strategy is to sow in stages to reduce our operating risks (weather issues and irrigation restrictions) while we will have a better control of the plots as they are not going to be all in the same stage at the same moment.

The 1^st stage sowing is developing well as you can see (herbicides and nitrogen have been applied) and we are going to start to irrigate those plots in about 7 days.

For now, the river is at a low level and does not permit to pump water. Rains are forecasted and we have also water stored in our reservoir to start irrigation process.

We are currently in the sowing peak and so far, 540 ha have been sowed in very good conditions. We are going to restart to sow by end of September as our objective is to sow in 3 stages the full surface we allocate to paddy rice production this season. This way we can have a harvest in stage and reduce our operating risks (weather issues and irrigation restrictions) while we will have a better control of the plots as they are not going to be all in the same stage at the same moment.

Below you can see the treatment of seeds with insecticides and fungicides applied before being sowed.

For the 1st plots already sowed, herbicides and nitrogen are going to be applied soon. Nitrogen is the most important nutrient for rice productivity as it encourages the vegetative growth of paddy. the seeds are already emerging as you can see.

On August 27, we began with the sowing period with block G (in yellow). Our objective for the cycle is to sow our so called “base” surface of 1,600 ha and the production is dedicated 100% to IRGA 424 cultivation. We choose not to extend our planted surface this cycle given market outlooks, especially for Brazil (Brazil plans to continue to reduce its imports by protecting its internal market; Paraguay production can be viewed as an adjustment variable for Brazil needs).

Timing and good seeds are key in this stage:  We are in the optimal sowing period for our region which will help to produce a fast growing, uniform crop that will have higher yields and better competition against weeds and other pests. The seeds used are all certified one as they lead to lower seeding rates, higher crop emergence, reduced replanting, more uniform plant stands, and more vigorous early crop growth. Vigorous growth in early stages reduces weed problems and increases crop resistance to insect pests and diseases. All of these factors contribute to higher yields and more productivity in the farm.

Land preparations of the fields have been completed. This cycle, we planned to sow over 1,500 ha with rice. Rice cropping requires adequate land preparation. Operations include land clearing, weeding, pre-irrigation, plowing and levelling.

The main objective of land preparation is to create a favourable environment for the rice plants to germinate and grow. Adequate land preparation will help to:

1/ improve soil structure (better ventilation, permeability, and loosening of the root zone) to make root penetration easier, and field topography in order to facilitate irrigation and drainage,

2/ distribute weeds and crop residues evenly over the field and incorporate them into the soil,

3/ obtain good recovery of fertilizer nutrients, and control weeds.

We are also testing new rock protections inside the main drainage. Those protections were built during the maintenance period of the season. Seeds are waiting to be sowed.

The secret agreement signed on May 24, 2019 between Paraguay and Brazil regarding Itaipu hydroelectric power station (one of the most powerful in the world) has hit the conservative government of the Paraguayan Mario Abdo Benitez.

The deal became only public by end of July. In less than 24 hours, the foreign minister and some other Paraguayan senior officials were forced to resign after learning that the terms of renegotiation of the Itaipu plant agreement benefit only Brazil. The deal would increase costs for Paraguay by more than USD 200 million.

Paraguay’s Senate rejected on July 29 the agreement and instructed the Executive Branch to handle all negotiations with Brazil related to Itaipu on the basis of transparency.

Brazil’s president came to rescue his ally: Bolsonaro sees Abdo as an ideological ally and knows any future government of Paraguay is unlikely to be as close to his government as the current one. A Liberal Party interim government would take a harder approach to the Itaipu negotiations and many other bilateral and multilateral issues facing the two countries. Brazil announced on August 1^st the cancellation of the deal and offers a new negotiation as a way to help Abdo to save face.

The Colorado party members withdrew their support for the impeachment motion that failed. President Abdo has been cautioned by the Paraguayan Parliament not to make the same mistakes and a Bicameral Investigative Congressional Commission has also been created to find out exactly what happened and why.