La. Farmers See More Humble Side of Chilean Agriculture

By Mike Danna
Louisiana Farm Bureau Federation Public Relations Director

There’s a prevailing thought among some U.S. farmers that American agriculture isn’t competitive when it comes to labor.

China has tens of millions of $2 a day farm laborers to work its crops.  In Thailand, India, Vietnam and similar countries it’s the same thing.  But on Thursday AgLeadership Class 12 found that cheap labor has done little to improve Chilean rice production.

With the average Chilean family operating on the equivalent of $15,500 U.S. a year, and farm families on about $8,500 a year, the country’s rice production still finds itself in something of a time warp.  The country’s rice producers know it and are clearly frustrated by it.

The reason is not a lack of cheap labor or land, but a combination of decades’ old technology and an inefficient use of resources, especially water.  In fact, there hasn’t been a new rice variety developed here in Chile’ in the last 25 years.  By contrast, the LSU AgCenter’s Rice Research Station in Crowley has released nearly 60 new varieties in the last 50 years, according to Dr. John Russin, vice chancellor and director of research and extension for the LSU AgCenter.

Chilean rice farmer Ulises Gutierrez, who grows rice on seven hectares, or about 17 acres outside Curico, in central Chile’, was clearly frustrated and a bit envious as he met with Louisiana rice growers in Class 12 Thursday.  He’s been growing rice for two decades. Rice and rice only.  He said a combination of poor weather conditions, limited resources and poor soil quality have kept him from rotating other crops like corn or soybeans on his land.

As Gutierrez told his story, it was clear he wanted us to know he was a good farmer; that he worked hard to provide for his family.  But his yields told an even sadder story.  While Chilean rice researcher Julieta Parada said the country’s rice growers average five tons per hectare, or 55 hundredweights per acre, Gutierrez’s yield last year was just one ton per hectare.  That’s just enough to take to local grocery stores and to provide a steady supply of rice for his family to eat.

Chile’ desperately wants to expand its rice production.  Today the country has only 25,000 hectares in production.  Those 62,000 acres produce only half the rice Chileans consume.  The other 50 percent is imported from Brazil and Argentina.

Like most South American countries rice is a staple at the Chilean dinner table.  But the Chilean rice industry hasn’t been able to overcome a variety of political, economic and environmental challenges that could lead to increased production.  The country is prohibited from growing GMO crops for human consumption and has had to battle environmental groups seeking to limit water and land use.   And while there are no GMO rice varieties, (unlike corn and soybeans), it gives you an idea of some of the hurdles the nation’s farmers are striving to overcome.

“When you see what they’re up against, it’s like they’re farming under the same conditions we were back in the 1950s,” said Matt Raley, retail sales and product manager for Raley Brothers LLC in Winnsboro.

Noble Guedon, who farms 1,800 acres of rice in Concordia Parish, said he found it hard to believe Gutierrez would continue to farm rice with such low yields year after year.  And despite a psychological economy of scale for a grower like Gutierrez, such low yields year in, year out seems like an exercise in futility.

“It’s seems like he’d be better off letting his land go to pasture and putting livestock on it,” Guedon said. “It’s just hard for him to be competitive.  I feel for him because when you think about it, it’s like he’s growing rice as a hobby.  A very expensive, not very productive hobby.”

The head of the Chilean Rice Growers Association told Class 12 that improved research and mechanization, combined with better resource management, are necessary if farmers here are to improve their position in the global marketplace.

“We have traveled to California and looked at their rice production,” said Ernesto Eguiluz.  “We want to come to Louisiana to look at your production methods.”

The AgCenter’s Dr. John Russin extended a personal invitation for Eguiluz to attend the Rice Research Station’s annual rice field day this June.  Russin, who did two tours in Afghanistan as part of USAID’s agricultural development program, said the AgCenter‘s charge to develop and share all aspects of production technologies to enhance growers’ bottom lines.

“It’s part of the AgCenter’s mission to help feed a world population that’s expected to double in the next 50 years,” Russin said.

Until next time…