MercoPress. South Atlantic News Agency

Drought could cost Argentina $225 million

Farm land planted with wheat in Argentina could fall by 10% compared to the previous season because of the severe drought, according to industry figures published Tuesday in Buenos Aires.

Land sown with wheat probably will fall to 5.5 million hectares (13.58 million acres), the lowest in the past five years.

Assuming a yield of 4,500 kilos (4.96 tons) per hectare, Argentina could lose some 225 million US dollars during the current season, according to a report released Tuesday by the Buenos Aires Grain Exchange

. The report said the drought experienced in the past few months, which delayed planting could discourage many farmers from changing to soybeans that has become increasingly profitable.

A July 14 survey shows that land planted with wheat was 56.7% of the projected area and 20.6% below the previous growing season.

The Buenos Aires Grain Exchange report said Argentina's 2004-2005 soybean harvest was a record 38.8 million tons, 22% above the previous season.