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.
Argentine farmers will increase investments in the next corn planting season despite fears about a political comeback for former President Cristina Fernandez, who implemented export taxes and restrictions despised by the sector, according to industry leaders.
Argentina has the potential to increase food sales to the UK by 28% in the short term, from the current US$ 830 million to US$ 1.060bn, according to the president of the powerful farmers' organization, Argentine Rural Society, Luis Miguel Etchevehere, currently in London with a business mission sponsored by the Argentine foreign ministry, the Argentine-British Chamber of Commerce and the embassy in London.
Argentina announced on Wednesday it was lifting currency controls and would allow the peso to float when markets open on Thursday, setting the stage for a devaluation, following pledges by new president Mauricio Macri for reforms to spur economic growth.
Argentina's business friendly president Mauricio Macri, announced on Monday large tax cuts on agricultural exports and emphasizing that the camp was essential to get Argentina back on its feet. Macri, who took office Thursday, had promised to slash the steep taxes on agricultural exports, which triggered major protests by producers against former president Cristina Fernandez administration.
Gustavo Grobocopatel, head of the agro-business Grobo group anticipated that with the measures announced by the team of president elect Mauricio Macri and to be implemented from next 10 December, Argentina's grains and oilseed crop “it going to increase by 40% to 50%”, meaning dollars for industry, jobs and services.