Illinois farmers examine agriculture in Brazil, Argentina
Grain and livestock farmer Jack McCormick of Ellis Grove recently participated in a 12-day study tour of Brazil and Argentina sponsored by Illinois Farm Bureau.
The trip was co-sponsored by Randolph County Farm Bureau and the regional agriculture supply and marketing cooperative, GROWMARK. Ten farmers from Illinois attended the tour.
The tour group assessed the competitiveness of South American farmers and agriculture regarding production, marketing and trade options, infrastructure, regulatory environment, and trade prospects. The farmers also wanted to determine whether and how U.S. farmers need to improve in those areas here at home and develop messaging to advocate for policies and actions to ensure U.S. competitiveness.
"Farming is as diverse in South America as it is in the U.S., with different sized farms and various crops produced," said McCormick, who grows wheat, soybeans, corn and barley and raises beef cattle in partnership with other family members.
"For farmers in those countries, currency shifts can be a real challenge to their profitability. They have less access to the latest crop and machinery technology. They have very little research for crop and agronomic issues, so they rely on U.S.-based research or invest their own money for research," he added.
Other challenges for farmers in those countries include minimal public investment in both Brazil and Argentina, so the private sector is stepping up to help build roads and grain terminals that farmers need to move their crops to export. Both countries have pledged government support to infrastructure improvements, but their economies have been struggling and they lack the money needed to carry out their plans. They face high transportation costs due to the long distance they must move crops by unpaved roads to the water ports, due to no rail systems.
South American farmers have an advantage over the U.S. in that over the years, they have been able to increase their productivity of crops faster than in the U.S. Also, they have a robust plan to increase their usage of renewable fuels, such as ethanol and biodiesel. Their price of land is lower, which helps them expand their agricultural enterprise. Integrated livestock systems have grown considerably in both countries as their reputations as quality producers grow. Very high per capita meat consumption in South America will mean a bright outlook for livestock farmers.
"Today, U.S. farmers have a competitive edge on infrastructure with our roads, railways, and the river system. But we must reinvest in ours soon or we will lose that advantage," said McCormick, who, in addition to farming, serves as director of Gateway FS and GROWMARK Cooperatives and is an active participant in farm policy and trade efforts for Illinois Farm Bureau. "We also have an advantage in government stability/policy and currency, which makes doing business in Brazil and Argentina much more challenging. We share issues with them such as low prices for the crops we produce, shortages in labor, speed of adoption of new crop technologies, and the enjoyment of producing food for a growing world," he said.
Tour stops included two AG infrastructure and facilities, eight farms, two research organizations, two processors and manufacturers, four farm and AG groups, and four government agencies across ten cities in the two countries.