Valley wants to promote irrigation in Argentina with more technology and productive efficiency

Nahuel Lo Cane He took office just four months ago as general manager of Valmont Industries in Argentina, but his career in agriculture has spanned thirty years between inputs, seeds and agribusiness in Argentina, Brazil and the United States. “I worked in the industry for nearly three decades and lived in Indianapolis and Iowa for five years. I returned to the country in 2019 where I held various roles,” he recalls.

The suggestion of canyon – he says – it seduced him from the first minute: “I loved the concept of irrigation, the possibility of increasing productivity and the impact it has not only on agriculture, but on entire regions.”

According to the FAO Argentina has the capacity to irrigate 8.5 million hectares. However, only about 2.5 million are irrigated today, 1.5 million of which are still using the traditional gravity system. The rest, about a million, is split between sprinkler systems and drip irrigation.

The problem, explains Lo Cane, is the low rate at which irrigated area is added to production. “There are about 30,000 hectares per year, which represents an annual growth of almost 4.5%,” he said.

For Valley, the challenge is this Break this inertia. “The opportunity is to accelerate the conversion of rainfed areas into irrigated areas,” he explained.

Lo Cane recognizes this Macroeconomic conditions remain the biggest obstacle for scalable investments. “The first calculation a producer makes is how many years it will take to recoup the investment. If raw material prices do not keep up and there are also retentions, the repayment period is extended,” he explained.

In other countries, a team’s return can be achieved in three or four years. Today in Argentina this period increases to eight. Added to this are the cost of financing: “Country risk has fallen sharply after the elections, but interest rates remain high. With reasonable interest rates and reasonable prices, demand would skyrocket.”

Lo Cane argued that corn is the crop where irrigation shows its economic impact most clearly. “The crop where the impact of irrigation on both productivity and profitability is most evident is corn.”he explained, explaining that in areas with 800 or 900 millimeters annually, the production gap is around 3,000 kilos per hectare. In these environments, a producer who normally achieves between 9,000 and 10,000 kilos can easily achieve that 13,000 kilos under irrigation.

The managing director pointed this out in drier regions the jump is even largerbecause the production area is much lower. “In areas of 600 millimeters you still get that 13,000 kilos, but the base is 7,000 kilos. The drier it is, the bigger the difference in productivity,” he explained. He also pointed out that there are significant increases in wheat and soybeans – between 1,500 and 2,000 kilos – although the key profitability remains in corn.

Lo Cane highlighted that in many areas producers usually avoid corn in the rotation due to climate risk or soil quality, but irrigation is changing the scenario. As he explained, this technology “Ensures complete rotation and consistency in production” This reduces uncertainty and enables long-term planning, even during dry campaigns.

However, he warned that including irrigation would require an increase in management intensity. “It forces you to drive the field like a Formula 1.”described and listed the requirements: maximum density, maximum fertilization, best hybrids and constant monitoring of the plot. For Lo Cane, irrigation means “Go to other production levels” and introduce a more sophisticated and professional leadership culture.

In Argentina, Valley remains the dominant player in the market. Since the advent of modern irrigation in the country, the market share has fluctuated between 65% and 70%. Lo Cane emphasizes that Valley’s strength lies not only in the team itself: “Behind the Pivot there is a lot of technology and a very robust distribution system, the installation, maintenance and support of which are difficult to replicate.”

The company started this year AgSense 365a platform that integrates climatic, agronomic and operational information from the pivot. “From the office, you can operate the equipment, receive notifications, analyze irrigation needs and even reduce safety risks. We bring all the information together to improve the efficiency of water use and costs,” he explained.

The relationship with the producer is long-term, he added: “A team lasts 30, 40 years. It’s a decades-long relationship. The usual thing is that someone who already has irrigation will buy new equipment to expand it and not sell used ones.”

In this context 2025 Valley will end with similar sales to 2024, although below what was projected. “Before the election there was a very big brake: interest rates were rising and decisions were slowing down,” explained Lo Cane.

However, the post-election recovery is underway: “The demand is now high and we are optimizing everything to arrive at Expoagro with a strong offer. We believe 2026 will begin with much more vigor.”

Lo Cane warned that gravity water use remains dominant in many regions of the country because there are no incentives to improve water efficiency. “In Argentina today there is no ‘punishment’ for inefficient water use”he emphasized, explaining that many producers assume that accessing the resource through the Earth’s mantle does not incur additional costs.

As he described, In other countries the opposite happens: “Water consumption is associated with costs and the state imposes a high tax that forces producers to be more efficient.”

In this context, he stated that the Printing systemslike scatter, allow a much more rational use the resource. Lo Cane explained that when a grower seeks true efficiency, he “automatically resorts to technologies like pivot irrigation” because they are “much more efficient than surface irrigation or gravity irrigation.” For Valley, the technological gap in water management continues to be one of the country’s great opportunities.

In any case, the executive acknowledged that there was still no sufficiently strong economic stimulus to accelerate the transition. “There is no clear incentive for the manufacturer to change the system,” he admitted. However, he assured that demonstrating this with these technologies is a central part of the company’s work “Efficiency and environmental compatibility are significantly improved”an argument that – as he said – is becoming increasingly important in investment decisions.

“We are in the right business, in the right country.”

Lo Cane leaves a clear message to the producers: “If there is one sector worth investing in in Argentina, it is agriculture.. The potential is enormous. We’ve been betting for 50, 60, 80 years and this is another time to bet.”

And he comes to the conclusion: “The technology is there, the knowledge is there and the Argentine manufacturer has the drive to innovate that drives forward.” Irrigation is one of the great opportunities for the country’s future“.