The situation of the farmers and ranchers Argentines is worrying and, unfortunately, the only thing we can hope for is that it worsens due to the lack of knowledge and sensitivity of the national government.
From the first measures taken in December 2023 to the present The situation of the primary sector has been deteriorating, the 120% devaluation directly increased the costs of the main inputs, the 340% increase in diesel prices in the last year strongly decreased profitability. As well as, the rise in service and freight costs were well above the increase in grains and meat. Thus, we observe that during the current administration costs increased from 120% to 360%.
What happens to the income that the producer receives for his effort and investment? It is very far from accompanying the increase in costs, and the current policy has clearly harmed the economy of companies and producing families.
In the case of grains, the interannual increase was:
- Soybeans 44%
- Wheat 61%
- Corn 80%
- Beef 115%
It is more than clear that the numbers do not close, you do not need to be an expert in the matter or a specialized professional. In any economic activity, if your costs rise more than your income, you go bankrupt. The concept of the grocer’s accounts is no less accurate because it is known: my income must be reasonably greater than the direct and indirect expenses of my activity… well, gentlemen…this is not happening.
To this negative numerical equation, we must add the decrease in the level of moisture reserves in recent weeks in almost the entire productive area, aggravated by a prospect of even longer drought for the coming days. Without a doubt, this climatic situation will impact lower yields and a decrease in the forage supply for livestock farming, further deepening the crisis.
National authorities boast of having eliminated numerous unnecessary and obsolete resolutions, which is mostly a success on the part of the government, but Before hooking the seeder to the tractor, producers do not look at the resolutions of the Secretary of Agriculture, Livestock and Fisheries, they look at the gross margin of each crop and/or activity.– and today – they are all negative except for corn in our own fields with yields of more than 75 quintals. I tell you that 75% of agriculture is done on rented land.
Farmers “bury” more than U$22,000 per year in seeds, fuel, phytosanitary products, and fertilizersetc. This is the sector that supports the productive network and the roots of the interior of the country. Given the importance of this, the government must take a series of measures for a total or partial removal of withholding rates that have a positive impact and respond to this burdensome situation. Otherwise, we will have fewer farmers, less dollar income, less investment, fewer jobs and more rural uprooting. To put it clearly: EVERYONE LOSES
Source: Ambito
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