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Uruguayan economy is largely dependent, directly or indirectly, on agriculture (crops and livestock). Production in Uruguay is based on the highly fertile soils of the Pampas, an ecosystem in which native temperate and subtropical grasslands are used for livestock production or have been converted to improved pastures (grasses/legumes) and to croplands. Interannual and interseasonal climatic fluctuations in Uruguay result in high variability in crop and pasture production with frequent negative consequences on the economy.
Baethgen, W.E. & Gimenez, A. (2001): Applying Seasonal Climate Forecasts and Satellite Information for Improving Decisions in the Agricultural Sector: the 1999-2000 Drought in Uruguay. 2001 Open Meeting of the Human Dimensions of Global Environmental Change Research Community.