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Montevideo, August 18th 2022 - 04:37 UTC

 

 

Cristina Fernandez manages to split the farmers’ united front after years of confrontation

Tuesday, March 17th 2015 - 07:39 UTC
Full article 32 comments
‘This is a program that is the government's decision, but it is also a policy agreed upon point by point with the other side, which is the FAA,” said Cristina Fernandez on national television ‘This is a program that is the government's decision, but it is also a policy agreed upon point by point with the other side, which is the FAA,” said Cristina Fernandez on national television
Under the scheme small farmers will be reimbursed 50% of the huge export tax on oil seeds, grains, beef and dairy produce which are as high as 35% in some cases   Under the scheme small farmers will be reimbursed 50% of the huge export tax on oil seeds, grains, beef and dairy produce which are as high as 35% in some cases

Argentine president Cristina Fernandez, on the campaign trail ahead of October’s national elections, announced on Monday the creation of a new fund which will reduce by up to 50% the 'retention' taxes on exportation rights paid by small and medium agriculture farmers.

 The fund of approx 250m dollars is earmarked for farmers with production capacity of less than 700 tons, which total some 46,000 in Argentina.

‘This is a program that is the government's decision, but it is also a policy agreed upon point by point with the other side, which is the FAA (Argentina Agrarian Federation),“ the head of state emphasized during the live transmission. The president also praised Omar Principe, the new head of the Argentina Agrarian Federation.

”It was a clear, open and honest conversation, overcoming all the preconceptions they had and that I also had, I was told that they are small producers that have nothing to do with the seed magnates, or the massive landowners,” CFK pointed out.

The announcement, particularly the agreement with the FAA, is a huge political victory for Cristina Fernandez since after years of clashing with a united farmers’ front she has finally managed to split them. Farmers’ long strike in 2008 had the Argentine government on its knees and almost forced the resignation of President Cristina Fernandez.

The strike and the continuous dispute with farmers was the result of huge export taxes (up to 35%) imposed by Argentine government and regulating export volumes to privilege the domestic market and ensure resources for an overblown budget. Opposition to the policies managed to unite all farmers’ organizations from the powerful rich to the small producers. Now however, apparently with the promise of cutting retentions by 50% to small farmers, Cristina Fernandez has managed to split the strong front.

Economy minister Axel Kicillof, who joined Cristina in launching the new fund, explained that the smallest farmers would enjoy the most benefit from the scheme, and that refunds on export rights would be made directly in farmers' bank account on the 15th of every month.

“Resources will be distributed between producers of up to 700 tons, who will receive a percentage of each ton produced,” he underlined.

Kicillof added that the 2.5 billion pesos reserved for small farmers represents “half of the retentions they will have to pay this year.”

The minister also explained that the agreement with the FAA was partly provoked by the strengthening US dollar, as well as a downward trend in the price of commodities exported by Argentina, such as soy.

“The products that Argentina exports, corn, wheat, soy, have seen falls of around 30% and this means a troubled situation for the sector,” he indicated.

Top Comments

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  • CabezaDura2

    Its just more smoke, the vast majority of the lower categories 100-200 Ton, that will get $450 no longer exist, and the higher categories will only get paid about 4,5 US$ per Ton, its f- all. Besides why not simply lift the taxes from 35% to 15% all together?? The reason is simple, the State keeps control on the money.

    Mar 17th, 2015 - 10:56 am 0
  • ChrisR

    The picture says it all about TDC: TMBOA (now with a flourishing gut on her, too much time in the wheelchair) clapping herself over some minor change that will achieve very little; the grinning child to her left continues to ruin the country with his wacky 'economic' ideals and of course Bogbrush ‘Anibal the Cannibal’ © ChrisR 2015 is now exactly positioned to further increase the K's drug empire having been deeply involved with it under Boss Eye.

    The trolls of course keep repeating the old mantra that when the Brits were involved the 'people' had nothing. Mmmm! Of course the 'people' have everything now, don't they: stinking slums without running water, plenty of running sewage in the streets and being preyed upon by all the crooks from the government, the policia and their own people.

    It is clearly a K's paradise, long may it continue.

    Mar 17th, 2015 - 11:24 am 0
  • Chicureo

    ChrisR
    “Bogbrush ‘Anibal the Cannibal’ © ”...???

    I think the Peronists have panicked because the Radical party and the PR have formed an electoral alliance. CFK will be announcing all kinds of populist concessions for future votes.

    Mar 17th, 2015 - 12:56 pm 0
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