What's The Dealio With The Farmers?

[Joe]

Not at all different, just as reprehensible. But you wouldn't call Sam Walton a seamster, nor should this lot be called farmers.

Compared to the US or Europe, Agribusiness is a lot tougher in Argentina. The government is loading export tariffs on you, giving you unfavorable exchange rates, in order to finance their populist voter buyer programs. Contrast that to agribusiness (or multinational) in the USA where the government is your bitch. Kudos to the successful agribusiness (or really any business) in Argentina.

 

[Matiasba]

What the goverment is doing, among other things, is to oblige the farmers to leave some of the harvest, some of the products they export, to the internal market, so we have not to import (would be insane to import meat or milk or wheat). So they are losing the posibilities to export what the government decree is destined for argentine poeople. Thats why the farmers always want a depressed economy with little to no internal demand, so they can export everything in dollars and not sell it in pesos in the internal market. Thats the model of the country the right wanted, an agroexport country with no internal market. Thats the model of militars dictatorships during the XXth century. Now since the 70s that power went to financial capitals so they dont control politically the country anymore. But they still are an important political and economic actor.

 

[mulderfox]

What the goverment is doing, among other things, is to oblige the farmers to leave some of the harvest, some of the products they export, to the internal market, so we have not to import (would be insane to import meat or milk or wheat). So they are losing the posibilities to export what the government decree is destined for argentine poeople. Thats why the farmers always want a depressed economy with little to no internal demand, so they can export everything in dollars and not sell it in pesos in the internal market. Thats the model of the country the right wanted, an agroexport country with no internal market. Thats the model of militars dictatorships during the XXth century. Now since the 70s that power went to financial capitals so they dont control politically the country anymore. But they still are an important political and economic actor.

that only makes sense if the internal market price is way lower than the international price.

 

[Matiasba]

that only makes sense if the internal market price is way lower than the international price.

Of course, one is in dollars and the local in pesos!

 

[Joe]

I don't know how the farmers here can compete. Soy, corn are all international markets with international competition and international prices. In the USA they get price supports, ethanol subsidies, tax breaks, anything they want. In Europe the farmers get all kinds of subsidies. Here they get a swift kick in the butt.

Capitanich warns sanctions could be imposed against agricultural producers

The government does not rule out fining agricultural producers who refuse to complete liquidation of their gains as they await a much convenient dollar price.

http://www.buenosair...tural-producers

 

[Dublin2BuenosAires]

In the EU the amount of farm subsidies is incredible. An entire industry is internally propped up by subsidies and stockpiling of excess product. It is a bit much to paint local farmers as villains because they try to sell internationally because the local govt puts an artificial ceiling on the internal market. That artificial ceiling is only necessary because of decades worth of economic mismanagement by peronists. So rather than subsidising to promote fair price to local consumers and product availability they actually restrict income. Thus creating the perfect opportunity for market monopolies, i.e. on the strongest and biggest can survive inside large agri-corps, the likes of montsanto and co become politically necessary to increase yields and stay competitive.

Fairly incredible to then point the finger and accuse them of speculating!

 

[Matiasba]

Thats because in central, industrialised countries, the agro is not the competitive sector, so they get protection. In Argentina the agro is the competitive sector, the one who provides dollars. Yes, we also have some industry, but its not the competitive sector here. In fact, the agro finances the industry. Industry does not provide dollars as the agro.
Thats why they get much more taxes than everybody, because is the other way as in industrilised countries. In fact, the protection they have in industrilized countries is from us. They subsidize the agro so they can compete with agrarian countries, such as Australia, Argentina, etc. Argentine agro does not need subsidios because they are already competitive without help, because of the advantages of the soil, the weather, etc

 

[AmigoArtistico]

Thats because in central, industrialised countries, the agro is not the competitive sector, so they get protection. In Argentina the agro is the competitive sector, the one who provides dollars. Yes, we also have some industry, but its not the competitive sector here. In fact, the agro finances the industry. Industry does not provide dollars as the agro.
Thats why they get much more taxes than everybody, because is the other way as in industrilised countries. In fact, the protection they have in industrilized countries is from us. They subsidize the agro so they can compete with agrarian countries, such as Australia, Argentina, etc. Argentine agro does not need subsidios because they are already competitive without help, because of the advantages of the soil, the weather, etc

It must be awfully painful to put that head of yours in the place where you've always got it.

 

[dennisr]

Have come to the conclusion "playing VICTIM" in Argentina is a national pastime. Big bad world against Argentina.

 

[Matiasba]

It must be awfully painful to put that head of yours in the place where you've always got it.

Im sorry. I dont understand.