This week the breakdown in the agricultural sector became evident.
It was after the announcements of the government of the measures for the producers affected by the severe drought.
On Tuesday, one day before what had been established, the Minister of Economy,
Sergio Massa
, met with the representatives of the liaison table.
At the Ministry, in front of the Casa Rosada, the official informed them in detail of the measures that were going to be implemented to alleviate the severity of the drought.
From the Government they estimate that the tax relief measures will reach
54,000 producers, with a total fiscal cost of more than $65,000 million.
Among the most important, the development of revolving funds to reach small producers through agreements with provinces, municipalities and agricultural cooperatives stands out.
There they plan to reach 18,000 producers.
In addition, they agreed to suspend income tax advances for all those producers with difficulties or covered by the emergency.
And in turn, there will be approval of emergency requests pending in the ministry.
Then, already on Thursday, a resolution from the Central Bank was announced that the producers affected by the Agricultural Emergency Law will have more flexible terms until December 31 of this year in the count of the arrears to consider their credit situation.
The new norm adds 45 days to the first three categories of debtors.
Massa met with the liaison table
The officials Juan José Bahillo (Agriculture), Carlos Castagneto (Afip) and Silvina Batakis (Banco Nación), who accompanied Massa in the meeting with the field on Tuesday, considered that
most of the claims of the table of link.
And from the side of the field they considered it so and
were satisfied with Massa's measures
because they ratified that they agreed to almost all the points that the entities had requested in the first meeting held days ago.
“Many of the points that we had requested are there.
Some were left out, such as the withholding of 8% VAT and the resolution of the Central Bank that discriminates against soybean producers who retain more than 5% of their production for soft loans," said Carlos Achetoni, president of the Argentine Agrarian Federation ( FAA).
For Jorge Chemes, main leader of the Argentine Rural Confederations (CRA) "a high percentage that we have requested is understood."
But he did clarify that "I want to see these measures in action" because "you have to see how it works inside, that there are no bureaucratic measures that stop it."
For his part, Elbio Laucirica, head of Coninagro, announced that next week they will meet again with the Government to advance concrete measures for regional economies and livestock that were affected by the lack of rain.
“We got together at a work table and situations were raised due to the particular situation.
Due to the drought, immediate measures were requested,” added Nicolás Pino, president of the Argentine Rural Society (SRA).
All the leaders clarified in the press conference that it was useful for the urgent situation but that structural measures were also needed, such as lowering withholdings and eliminating exchange rate splitting.
But, after knowing the measures of the Government and the opinion of the ruralistas, criticism began from the bases.
They expressed their "fed up" and let it be known that "they are useless."
They also expressed their displeasure with the leaders of the liaison table.
"We do not lend ourselves to the state cotillion distracting the looting of the production that we are witnessing," said a group of producers from the north of the province of Buenos Aires through a statement signed by the rural societies of San Pedro, Rojas, Pergamino , San Antonio de Areco, Captain Sarmiento, Arrecifes, Colón and Baradero.
They consider that the leaders have shown "ineptitude to defend the sector" by validating unconsulted measures that are useless.
What they are asking for is the total removal of withholdings and a "real change that guarantees the freedom of a market that must function as those of all civilized countries do."
Meanwhile, the Association of Producers of the North (Apronor) observed "with surprise and concern the expressions of satisfaction of the CEEA" after learning about the measures for the sector affected by the drought.
For the group they are nothing more than "populist cotillion", but what producers need are three specific measures: elimination of withholdings, unification of the exchange rate and total opening of the markets.
"The rest is chatter," they opined.
According to the latest estimates from the Buenos Aires Grain Exchange, farm exports would fall by a little more than US$ 14,000 million by 2023 and 1.8% of GDP would be lost.
In any case, the last rains of last week cushioned the productive losses that soybeans and corn that had already been planted had been having, and allowed progress in planting in various areas.
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