In this context, the Argentine Agrarian Federation (FAA) raised its concern about the situation of small and medium producers due to the drought and the consequences of frost and hail. “The producers of a large part of the country are juggling alone to face a very serious drought that punishes the Pampa Húmeda as well as the regional economies, just as others face the consequences of frost or hail,” said the entity. it’s a statement.
According to the Agrarian Federation, they continue “with a devalued Emergency Fund, with a ridiculous amount, which is not enough to respond to the needs of all those affected.” “The 500 million pesos are not updated, nor is progress being made with the approach of a comprehensive and profound policy, capable of dealing with so many inclemencies, which are more and more profound and repeated. There is no debate about multi-risk insurance, nor specific approaches are proposed for so much damage,” he added.
For the FAA, it is “answer time” and he raised the need to “stop charging profit advances that will not exist, to think about how to help so many producers who today do not know how they will face the payment of their credits; or to how they will continue to produce”.
“We growers are still waiting for solutions; time has run out and we don’t want to nor can we continue fighting nature alone, so that later politics will continue to pay for their eternal party with the meager results of our production and our enormous effort,” he concluded.
The president of the Rural Society, Nicolás Pino, had proposed something similar weeks ago, who expressly asked the Government to stop charging the advance payment of the Income Tax to those producers who today are suffering the effects of the drought in their fields.
The scenario is even more complex with regard to the export market and the latent possibility that there may be a lack of wheat in the domestic market. Weeks ago, the Secretary of Agriculture, Juan José Bahillo, met with various actors in the wheat chain and the exporters were told that the promised shipments would be fulfilled. Of course, the equilibrium volume set at 10 million tons would no longer be viable and therefore exports would remain stuck at just over 8 million tons, which is what the exporters had already declared in practice.
At this time in the agricultural sector there is a very strong rumor that if the drought continues, cutting production yields, the Government will resort to a more drastic intervention in the market. There is concern that the low availability of the cereal increases the internal values of key products such as flour or bread. Something that does not sound so far-fetched because the price of future wheat today is trading above that of merchandise with immediate delivery.
currencies in sight
Logically, the drought is not only complicating the wheat campaign but also delaying the early planting of corn and sunflowers, while the Government already rules out that December and next January will be two very complicated months due to the fall in foreign currency income, it is that for At that time, a greater income of wheat dollars was expected, which will not arrive now. That is why within this week’s meetings new accounts will be worked on the table to continue taking care of the dollars that enter and closely monitor imports. Foreign currency is not left over.
The strong bet continues to be soybean, but the truth is that the water profile of the soil is also a concern for producers before starting planting and, on the other hand, international prices would tend to retract for next year. An explosive combo that at this time occupies and worries the Economic team.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
