Argentina’s main farm groups will hold a four-day sales strike this week, officials with local growers groups said on Thursday, to protest a tax hike that soy crushing companies warn will cripple investment in the key sector.
Argentina's Ministry of Agriculture suspended on Wednesday the registration of agricultural exports until further notice, it said in a statement, a move that traders said likely foreshadowed a steep increase in grains export tariffs.
Argentina farmers increased the forward selling of soybeans in the last four months of 2019 in an effort to avoid higher export taxes that are now in effect, according to a Global Agricultural Information Network report from the U.S. Department of Agriculture.
Argentine president Alberto Fernandez together with business people, union leaders and representatives from social groupings launched the social pact, called “Argentine commitment for development and solidarity”, with the purpose of achieving long term consensus that goes beyond a presidential mandate (four years), and includes “shared goals which can be crystallized in different chapters”
Argentine farmers from the central provinces of Cordoba and Santa Fé are back on the roads to protest the latest raft of export duties on agriculture produce and overall increase in taxes established by the recently sworn in administration of President Alberto Fernandez.
Argentine farmers are disappointed with the new taxes on farm produce exports decreed by government, and particularly with president Alberto Fernandez who had promised during the campaign to work with them in developing policies.
Argentine President Alberto Fernández signed a decree whereby export taxes on soy, wheat, corn and beef go up. The decree became available Saturday as it appeared in the Official Gazette and is effective immediately.
Argentine farmers, anxious about an increasingly murky political outlook and economic turmoil, are turning toward soy over more expensive corn to cut costs, a shift that could impact next season’s harvest in one of the world’s top grain exporters.
Argentine farmers are expected to plant 6.5 million hectares of wheat in the 2019/20 season, the government said in a report, citing good rainfall as the reason for the increase from its previous forecast of 6.46 million hectares.
Argentine farmers are finishing this year's wheat sowing, helped by moist soils and cold weather that is prolonging the vegetative stage of crops, raising hopes of high yields and a record harvest, growers and analysts said on Wednesday. Cold Southern Hemisphere winter weather allows seedlings to grow more sprigs per plant. Harvesting starts in November.