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Field: the drought worsens and the fear is that the chain of payments will be cut

2023-03-07T13:32:09.080Z


With a sharp reduction in the harvest, it is difficult for producers to pay off the debts incurred to pay for inputs.


The figures are updated day by day and this new heat wave only worsens

the forecasts

.

In this edition of Expoagro, which opens its doors this Tuesday in San Nicolás, there is already talk that the drought will deny the

Argentine economy no less than 20,000 million dollars

.

In other words, close to 2 points of GDP.

Dramatic.

And the question everyone is asking is

what will happen to the payment chain.

How the debts contracted at the beginning of the campaign, which turned out worse than the most pessimistic forecasts, will

be settled .

"There are producers who

cannot comply with the grains promised to pay for the inputs that we sold them at the start of the campaign,"

Carlos Achettoni

, from

Coninagro

, told

Clarín .

In the countryside, the raw material that producers extract from the land is a

payment currency, perhaps more valuable than pesos.

That is why there are many debts incurred in wheat, soybeans or corn that cannot be fully paid precisely because crop yields have collapsed.

"Half of the debt is with input suppliers, ranging from seeds to fertilizers and everything you can think of," says the Sales Manager of a multinational.

"We have to sit down and

see how the situation is regularized

. Nobody has the intention of taking a producer off the field, what they want is to help," he adds.

The Secretary of Agriculture, Juan José Bahillo, on Monday at the opening of Expoagro.

In this the banks already play a key role.

Juan Cuattromo

, head of

BaPro

, commented that it is systematized to manage online a special line for producers with land in areas officially declared in emergency.

Banco

Nación

is preparing something similar.

Daniel Funes de Rioja, head of the UIA,

was at the opening dinner that was held on Monday night at the Hotel Colonial de San Nicolás.

He admitted to this newspaper that the situation is very difficult, but he trusts, paradoxically, that the amount of pesos in the economy will cushion the impact.

He says that the fact that

the debt swap in pesos clarifies the outlook for the banks,

fundamental players when it comes to alleviating pressure on producers, can also help.

"Let's hope that the exchange serves to reassure. The economists who speak with the UIA say that the end of the mandate can be reached with the debt in pesos ordered and

with just enough dollars

. "

Likewise, the drop in the amount of grains to be collected, transported and processed is an undeniable problem.

There are

fewer hired trucks, fewer covers to change

, fewer plates of food that are sold in highway soup kitchens, less labor, fewer liters of diesel, less everything.

That does not mean that Expoagro does not maintain that condition of

unique showcase

in which the ecosystem commonly known as "the field" shows how year after year it moves its frontier of productivity and efficiency, making it clear why today it continues to be one of the

main engines of the

Argentine economy.

The headwind that this drought means is another opportunity for him to show that the start is going forward, once again.

Saint Nicholas (special envoy)

look too

In the midst of the heavy losses due to the drought, the Central Bank had to sell US$ 42 million

Climate disaster: Argentina will lose 20,000 million dollars

After wreaking havoc in the productive region, La Niña retreats

Source: clarin

All business articles on 2023-03-07

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