Latin American agricultural production challenges

Agricultural sectors across Latin America are navigating a period of volatility characterized by shifting production projections and rising input costs. In Bolivia, producers are facing pressure from increasing diesel and dollarized costs, with Anapo projecting 1.3 million hectares of soybean for the 2026-2027 summer campaign. Concerns have grown regarding the need for export liberalization and the approval of transgenic events to secure yields and national food security.

In Argentina, the 2025/26 campaign saw a record investment of US$14.7 billion, supported by increased maize acreage. While market tools like futures options have helped manage price risks, legislative tensions remain regarding seed laws. Additionally, producers in the Entre Ríos province are facing new biological threats, as specialists have detected the first generation of the fall armyworm, a pest that poses a significant risk to corn crops due to its rapid lifecycle.

Other regional developments include shifts in crop types in Uruguay and supply shortfalls in Honduras requiring duty-free maize imports. In Guatemala, warnings have been issued regarding potential production drops of up to 30% by 2027, driven by El Niño and rising input costs.