Alto Paraguay (Spanish pronunciation:[ˈaltopaɾaˈɣwaj]; Upper Paraguay) is the least populous as well as a sparsely populated department of Paraguay. The capital is the town of Fuerte Olimpo.
In 1992, the Chaco Department was merged with Alto Paraguay.
Paraguay's largest reserves of undeveloped fertile forest and lowest land prices are found in Alto Paraguay. Agriculture and cattle farming have started to make inroads. The fertility of the Chaco's deep sedimentary soils is generally high, except in the westernmost parts, where there are very sandy soils, and in the eastern plain where there are some seasonal wetlands. Annual rainfall is sufficient in the east (around 1200mm), fair in the center (around 900mm) and scarce in the west (around 700mm). A lack of infrastructure and roads is the primary limitation for farmers in the area.
Current agricultural expansion comes at the expense of the area's native forests. During the two decades between 1990 and 2010, Paraguay had one of the highest deforestation rates worldwide. The World Land Trust estimated 2008 deforestation in the Paraguay Chaco was over 200,000 hectares.
[2]
The department's most important activity is cattle ranching, extensive in the savannas of the east and intensive on the planted pastures of cleared land. Cultivation of sorghum, sugar cane and (in planning stage as of January 2009, for the arid west) jatropha are very recent developments.