Agricultural sector losses in Buenos Aires province due to floods will amount to $2.4 billion. The floods affecting more than 5 million hectares in the central part of Buenos Aires province will cause losses of $2.4 billion for the agricultural sector. This calculation was made by Ignacio Iturriaga, a producer from the Roque Pérez area, one of the most affected by the excess water that has been prolonging since April of this year. The estimate is based on the fact that these fields will be out of production in the current campaigns. Iturriaga detailed that the flooded area is divided into 2.25 million hectares of agricultural land and 2.25 million hectares of livestock, with direct costs of $466 per hectare in agriculture and $50 per hectare in livestock. He also estimated gross margins of $400 per hectare for agriculture and $180 per hectare for livestock. The producer indicated that he made these calculations based on the direct costs published in 'Agricultural Margins' and the gross margins of corn, soybeans, sunflowers, and livestock. His calculation takes into account two simultaneous effects: on the one hand, $1.161 billion in unrealized investment, and on the other, $1.305 billion in suspended gross margin, leading to a total estimated impact of $2.466 billion. He also extended his analysis: 'What was not invested because it was covered with water is not money that the producer loses: it is money that the gas station owner loses for the diesel that he did not sell, the one who sells inputs, the contractor.'
