MercoPress. South Atlantic News Agency

Wrong policies will cost Argentine farmers 12.5 billion this year

Lack of rainfall, collapse of commodities prices plus misguided camp policies from the Argentine government will cost farmers a fall in income of 43 billion pesos (equivalent to 12.5 billion US dollars) in 2009 compared to last year, according to the Argentine Rural Confederations, CRA.

Argentine farmers are planning to return to the streets and main routes to complain about their plight and to demand changes in government policies. CRA, the largest and most combative of camp organizations, made mostly of small and medium sized farms, hinted the mobilization could begin as soon as in the second half of February. CRA must coordinate with the other three farmers organizations that last year successfully, but partially, turned the arm of President Cristina Kirchner administration policy regarding grain and oilseeds export taxes. "That sum of money is enough to build 30.000 schools, or 43.000 kilometres of national routes and this loss will have a direct impact on all sectors of the Argentine economy, particularly in the towns and cities of farming areas", warned Nestor Roulet, CRA vice-president. Roulet said that besides the drought, the "Kirchner administration intervention with misguided policies caused farm prices to fall, discouraged farmers to make use of improved technology, and at the end of the day we're going to have 22.4 million tons less of grains". According to CRA this direct impact for the farmer, less tonnage and lower prices (for wheat, corn, soy and sunflower), represents 33 billion pesos (9.7 billion US dollars) less. Similarly there will be less trucking needed as the crop is smaller, and with 2.9 million hectares less the same will happen with harvesting. Regarding cattle breeding this year compared to 2008, income is estimated to drop by 5.23 billion pesos (1.54 billion US dollars). "Half can be attributed to the drought and the rest to the government's policy of freezing livestock prices", adds the report from CRA. With dairy farming the situation is similar: losses for 2009 are estimated in 3.2 billion pesos (just below a billion US dollars), of which 30% lack of rainfall and the rest to the prices' policy from the government. Therefore "total losses for 2009 can be anticipated in approximately 43.8 billion pesos" concludes the report. CRA together with the three other farmers organizations (FAA, Coninagro and Rural Society) will be deciding over the weekend about the next steps to follow. Two of the organizations favour taking to the road, suspending grain and oilseed sales for two three day periods plus tractor marches in towns and cities. However "this time we will not be involved in pickets or blocking traffic. That was last year: now we are struggling over a completely different situation and the fact that the government refuses to talk to us or even listen to us", said Eduardo Buzzi, president of the Argentine Agrarian Federation (small farmers) who last year was one of the heroes (and moderators) of the huge farmers' protest. Tentative dates are February 19 to 21 and March 5, 6, 7 with a huge concentration in Cordoba on March 14th.