Paraguay’s Agricultural Landscape: A Shift in Production and Access to Resources
Table of Contents
The Paraguayan agricultural sector is undergoing a significant transformation, with a growing divergence between small, medium, and large producers, according to a new report from the Ministry of Agriculture and Livestock (MAG) based on data from the 2022 National Agricultural Census (CAN). While small producers continue to dominate in sheer numbers, representing 91.5% of all farms, they are reducing their cultivated areas and increasingly diversifying into animal husbandry, facing persistent challenges in accessing the resources needed to compete.
A Divided Agrarian Structure
CAN 2022 identified 291,497 agricultural farms in Paraguay, with the vast majority – 97.1% – concentrated in the Eastern region and the remaining 2.8% located in the Western Chaco region. The country’s agrarian structure is fundamentally divided into three groups: small, medium, and large producers, each with distinct characteristics and levels of access to opportunities.
The Challenges Facing Small Producers
Small producers, comprising 266,928 farms, control just 8.3% of the total agricultural land – 2,545,083 hectares. A key finding of the report is the limited access this segment has to crucial resources. “The stratum of small producers is the one with the least access to productive training, credit, inputs and machinery,” the report indicates, contributing to inadequate soil management and low productivity. This results in insufficient income for many, despite the social, economic, and productive relevance of this category.
Interestingly, a significant proportion of small farms demonstrate land tenure security, with 44.3% holding definitive titles and 30.7% possessing provisional titles. However, this hasn’t translated into improved economic outcomes, as credit remains a significant barrier, further hindering agricultural activity within this segment.
Medium producers: A Growing Force
In contrast to small producers, the medium producer segment – consisting of 17,267 farms in the Eastern region – controls over 2.5 million hectares,a million more than their smaller counterparts. Thes producers are pivotal in agricultural production due to their geographical distribution and greater capacity for land acquisition, technology adoption, and financial investment.
Since 2008, medium producers have expanded their cultivated area by 434,000 hectares, demonstrating improved production conditions. Soybeans are the dominant crop, generating approximately 1.2 million tons of income, followed by tupi pyta zafriña corn, sugarcane, wheat, and safriña soybeans. Livestock activities, especially cattle, pig, and milk production, are also significant income generators, especially in several key departments.
Medium producers also enjoy superior access to credit compared to small producers, with larger farms correlating to greater financial access. While soil management practices like crop rotation and green manure planting are not yet widespread (below 50%), this segment demonstrates a high reliance on agricultural production for income – exceeding 80% across all subcategories – and greater engagement with technical assistance and producer associations, facilitating innovation.
Large Producers: Diversification and Technological Advancement
Large producers, defined as those with over 500 hectares in the Eastern region, represent the smallest group (4,301 farms) but control a significant 8.9 million hectares.These producers are dynamic actors in the paraguayan agrarian structure, possessing considerable resources, technology, and financial stability.
the report notes a trend of diversification among large producers, shifting from a concentration on livestock to expanded agricultural activities, particularly in the Western region. This expansion is accompanied by high levels of mechanization and advanced production technology. They cultivate almost half of their land with soybeans, corn, wheat, and rice, with the remainder dedicated to livestock and forestry. In the Chaco region, these producers manage an expansive 15.8 million hectares.
Compared to 2008, large producers have increased their cattle holdings by 1.8 million heads and expanded crop areas by 3.3 million hectares,with 2.7 million hectares added in the Western region. Access to credit is high, supporting the implementation of technological packages to enhance productivity and income. They are also well-equipped with machinery and equipment to manage large-scale operations.
the MAG report paints a complex picture of Paraguay’s agricultural landscape, highlighting the growing disparities between producer segments and the urgent need for targeted interventions to support small producers and foster a more equitable and sustainable agricultural sector.
