Ag losses likely to top US$1B after Chile rains

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Published: September 12, 2023

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File photo of Cape Horn, the southernmost point of Chile.

Reuters — Heavy rains in Chile’s central south farming region in mid-August may have caused at least US$1 billion in losses, according to estimates by authorities and the industry.

Extreme weather conditions led the government to declare a state of catastrophe last week as dangerous rains pounded isolated communities and killed at least three people.

The government of President Gabriel Boric issued an agricultural emergency for 100 municipalities, approving some $8.3 million worth of aid to replace irrigation infrastructure, canal systems and other measures for farmers, who called for more help.

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“There is damage to small, medium and large farmers, producers that supply the local market and also a lot of orchards that are dedicated to export,” the president of the National Agricultural Society, Antonio Walker, said at a press conference after meeting with Chilean agriculture minister Esteban Valenzuela Aug. 28.

Aside from damage to irrigation systems and riverside areas, there were also losses of fruit and vegetable orchards and fodder for animals, Valenzuela told reporters.

Besides being a top exporter of copper, the South American nation is also a strong agricultural and forestry exporter, with shipments of fresh fruit and nuts, pulp, wine and wood.

Walker said urgent measures were needed before the arrival of the southern spring in September, when certain crops are irrigated.

Farmers also now fear that the El Niño weather phenomenon, which has brought heavy rains to central Chile after years of water scarcity, could cause further instability in the coming spring months.

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