MercoPress. South Atlantic News Agency

Argentina promises soft credits for farmers to help address drought consequences

Buzzi said the President should be as concerned about the crisis in the farming sector as she is of the Malvinas Islands

The Argentine government agreed with the main farmers’ organizations to grant credits equivalent to 530 million dollars to help combat the drought that affects a large portion of the country and is extensive to neighbouring countries of the Southern Cone.

This sum is in addition to another 115 million dollars contemplated under a special emergency fund for agriculture, explained Eduardo Buzzi, president of Argentine Agrarian Federation one of the four main groups that held a meeting on Thursday with Agriculture and Livestock minister Norberto Yauhar.

Further meetings are scheduled to continue addressing other issues related to the current lack of rain and the Argentine government strong intervention in the sector strongly resented by farmers who have been to the roads and towns to complain in recent years.

“This is insufficient because losses will be far greater” claimed Buzzi adding that the organizations are also demanding a freeze on taxes and other levies for farmers directly affected by the drought. Most grains and oilseed exports in Argentina pay a levy in the range of 20% to 30%.

Further on Buzzi echoed the speech given by President Cristina Fernández on Wednesday after her thyroidectomy surgery when she admitted that provincial treasuries particularly those from the so called Argentine ‘bread basket’, are suffering the consequences of the current situation.

“The current drought is affecting many provinces of our country. It's a serious thing. Yesterday we all saw how concerned the President is about the Malvinas Islands. I think she should also worry about the crisis the farming sector is going through”.

 Insufficient rainfall which was partially compensated in the last couple of days with some humidity affects the provinces Buenos Aires, Santa Fe, La Pampa, San Juan, Neuquén, Misiones, Cordoba, La Rioja and Entre Ríos, all of which have declared an agriculture emergency.

Argentina which is one of the five world main producers of grains and oilseeds has reviewed downward all of its estimates for the 2011/2012 harvest, which was originally forecasted at a record 106.5 million tons, of which 54.3 million of soybeans and 28 million of corn, two of the crops most suffering the lack of rainfall.

Experts estimate the soybean crop now will be closer to 47.8 million tons and corn, 22.1 million tons.

In 2008, Argentina lost 35.4 million tons of grains and oilseeds because of the worst drought since the beginning of the new millennium and as a direct consequence of the La Niña climatic phenomenon.