River cleaning: Maintenance and adjustments work performed in the river El Dorado are now almost completed (90%). Our aim was to redirect over a 4 km distance the course of the river and to clean the channel (digging more deeply and making it wider) in order to allow the river flow and to avoid water entering in the farm.

We got also permission to build a kind of external protection wall along the river so that in the event of a flood, the farm will not be affected. You can see some pictures below of the soil movements performed. In the highest parts, the protection wall reaches 5 meters in height.

Cattle operation and pastures: We have around 2,400 heads at the farm. Like our farm in Corrientes, dryness which affects the whole region is impacting the animals at various levels (well-being, production, diet, fertility, etc) as well as pastures available. Some heifer calves, weakened by the situation, need already to be supplied with corn and pellets as pastures are not dense enough to address their needs especially in terms of protein).Grassing area has reducing given the lack of water and the flood situation we faced earlier did allow us to sow pasture on cleaned fields (only wild vegetation has grow).

Fire: In the evening of October 15, after a hot (37°C) and windy day, a fire has started in the natural forest reserve on the outside edge of the farm (along the river). Fortunately, the gauchos could detect it on time and stopped it before entering in the productive areas of the farm (ie cattle area). Only some external fences where affected, and we have repaired them by using some wood of the natural forest reserve.

Since the beginning of the year, Fires in Argentina have raged around 7,700 km² (it’s more than a quarter of the entire country of Belgium).

Set against a backdrop of swelling tension in exchange markets and fast growing poverty, the Argentine government needs to reach asap an agreement with the IMF to refinance its $44-billion credit line.

Argentina reached already in August a deal with foreign creditors to restructure $66 billion in debt after months of negotiations, and needs now to agree with the IMF on new terms on the repayment of a $44 billion loan agreed in 2018. On his side, the IMF sounds a warning over rising global debt levels and proposed reforms to the debt-restructuring process for countries that struggle to meet their obligations. In this frame, the IMF will carry out a mission on Argentina’s debt restructuring to reach an agreement over a new credit programme. Government officials say they simply want to refinance the $44 billion and that they are not seeking for additional funding.

The Central Bank’s monetary policy and currency controls will be a focal point in the government’s negotiations with the IMF for a new financing programme. To this aim, the Central Bank announced it will end a policy of “uniform devaluation” and allow greater volatility. During the 1^st week of October, Argentina announced also a slew of new measures such as cutting taxes on certain crop exports temporarily as the Central Bank was losing reserves at a faster pace in recent days, in part stemming from savers withdrawing dollar deposits. Individual demand for dollars intensified after the government tightened capital controls September 15, and the dollar reached 141 per peso on the black market. Those measures do not seem to cope for now with the larger issues Argentina is dogging.

The Central Bank has tightened conditions for the purchase of foreign currency, to prevent hoarding, preserve reserves and discourage demand for US dollars.

On Tuesday 15, the president of the Central Bank of Argentina (BCRA) announced a host of new measures , including a 35% tax on dollar purchases by retail savers, which will apply on top of the previous 30% so-called ‘solidarity tax.’ The extra levy will also affect credit card purchases in dollars. The monthly cap amount of USD 200 per citizen to buy foreign currencies, put in place by Macri’s administration, remains still in place.

As mentioned in the Article from La Nacion dated 15/09/20, if you spend USD 1,000 with your credit card, you will not be able to buy the monthly USD quota during 5 months. Should you have a TV or music subscription, this amount will be decreased from your cap amount (assuming a USD 20/month for a subscription, you will be able to purchase after all taxation USD 130).

This measure seeks to reduce the gap between the official exchange rate and the black market, which has soared to more than 70%. Today, the black market is at ARS 133 per USD and it raises the question of which rate to expect in near future…Argentines have been buying dollars at a record pace as the peso loses value almost every day, pushed by some anti-business government decisions, an economy in free fall due to the pandemic and lack of saving options.

Maintenance work of the river El Dorado has started after having been delayed due to circulation restrictions. Earlier in February, our farm was affected by torrential rains and we notice so as our neighbours that water was unusually slow to evacuate as the problem was emphasised by the illegal internal protection walls build by some farmers upper the river which affected and changed water course.

Therefore, with the support of local autorities, our  objective is to redirect the course of the river and to clean the channel (digging more deeply and making it wider) to allow the river flow and thus avoid water entering in the farm. Once this first stage will be reached, we will have to drain some plots where water is still steady.

In the afternoon of August 25, a fire has again started along the national road N°118 ,which borders Tata Cua forest, in our other neighbour’s farm called Vacca Moretti. Unfortunately, the departure of this fire could not be detected fast enough by our neighbor and the fire quickly spread to our forest, pushed by hot air (34°C registered on this day) and wind.

The fire reached then plots of our forest planted with eucalyptus. The youngest eucalyptus trees have exacerbated the fire. Their sap is flammable, and so is their bark, which flies off when burned, igniting new fires in the pine trees sections of our forest.

Firefighters’ and our farm personal were fighting against the fire during 48 hours, non stop, to contain it. As a result, 630 ha of our tree plantation were affected in various stages. Some equipments have burned like our solar water pump and a lot of fences. Luckily, nobody was injured and thanks to the efforts of the staff, the fire could be contained before reaching silage storage facilities and cattle area.

Preliminary investigations and evidence indicate that the origin of the fires is most likely accidental (discarded cigarette end). We have started to evacuate the spoils and replace destroyed fences.

Pine trees plantations, which account for 77% of the area affected, seem to have been the most resilient to flame as their thick bark does not catch fire or burn easily. It also protects the inside of the trunk, the living tissues that transport water and nutrients, from heat damage. Pine trees also drop lower branches as the trees grow older, which helps prevent fire from climbing up and burning the green needles higher up the tree. Eucalyptus and pine trees utilize also tall crowns in order to keep flammable leaves and dead branches high from the ground and away from fire.

Fire can destroy the cambium (tissue between the wood and the bark that actually grows to form wood in trees) over a part of the tree trunk surface without necessarily killing the tree. The consequences for the tree are then proportional to the height of the charred trunk. Furthermore, both species of our trees affected have a high capacity to regenerate.

We are going to analyse each woodlot with our forest experts to valuate the damage to the trees and actions to be undertaken. We will have to treat the trees against parasites attacks, which rapidly colonize the area covered by the fire, as well as against root pathogens as fire favored them.

source: NASA FIRMS

Wind, drought, high temperatures, an explosive combo: This fire was not an isolate event as 300 others have occurred in our close area (Article from El Litoral dated 11/08/20) and from a national perspective, 11 provinces are currently hit by fires and so far over 120,000 hectares on farmland have burned (Article from Infobae dated 26/08/20).

Situation/weather: As previously indicated, we are concerned about the drought situation we are facing in Corrientes province. We still haven’t recorded any rain and continue to suffer from wide daily fluctuation in temperature with hot extremes (8° C in the morning vs 34°C in the afternoon). According to weather expert, we will face this year “La Niña” climatic phenomenon with its peak in November. This climatic phenomenon is characterized in our region by a heat waves and dry weather. September should be like August and we might only get some rains in October.

Cattle operation and pastures: We have currently above 6,400 heads at the farm. Heat stress can strongly impact the animals at various levels (well-being, production, diet, fertility, etc.). To management this stress, we are adjusting food supply (silage, completed with corn and pellets). Grassing area has reducing given the lack of water and OAT, sowed earlier this year, is also emerging hardly. For Ray-grass, we are in the 1^st grassing stage.

In addition, we are also making sure that the herd has sufficient watering. To regulate its temperature, a cow will increase her breathing rate and sweat a lot. A cow loses 15 to 20 liters of perspiration in winter and above 40 liters by hot temperatures. Cattle daily water needs is equivalent to 8- 10% of their live weight. In average, 50 litres per day but by hot temperatures, they will need above 70 litres per day. Therefore, we should not only take into account availability of pastures but also water.

To address those needs, we have dense infrastructures at the farm: a big natural lagoon, the river Santa Lucia as the riverside is completely clean so that the cattle can go down, drink water, and come back to the plots. We have several drinking troughs all over the farms with pipes connections from main or secondary tanks to those drinking troughs.

We have also water rain collectors such as little lagoons (tajamares or bañados in low lands) and 2 Australian tanks (each with a 400,000 litres capacity) powered by a solar powered pump delivering 30,000 liters of water in 8 hours. We operate 10 wells and transportable water tanks with a capacity of 30,000 liters. For now, all animals are in good shape and we are applying a close control protocol. Here you can see 2 years old heifers which are going to be in service in October.

We recently faced an attempted cattle rustling. Thanks to the vigilance of the staff, it could be aborted and 2 among the 4 robbers have been arrested. All the Province is facing a boom in cattle rustling as the argentine situation is worsening (Article of La Nacion dated 19/08/20). We have emphases our controls so as mutual assistance between neighbors in this area.

On Monday 10, 2 forest fires were triggered overnight along the road N°118 which borders Tata Cua forest and our neighbours’ forest called Ana Cua. You can see on the picture, the fire affecting Ana Cua forest.

Fortunately, our trees were not affected. Our local manager, Ricardo Borda, with the support of all the team there reacted immediately to control it and save as much as possible of wire fences. Our people also provided assistance to our neighbor to prevent the spread of fire to our forest.

The current period is favorable for forest fires, because the combined effects of drought and low water content of plants are added to the traffic of the national road. The origin of the fires is most likely accidental (discarded cigarette end).

We could avoid the worst as bordering roads have been cleaned to prevent fast-spreading fires and thanks to the quick reaction of all the team. Nobody was injured and our insurance should cover the damage caused.