In search of eliminating withholdings, the field will ask Luis Caputo for a meeting

In search of eliminating withholdings, the field will ask Luis Caputo for a meeting

The Liaison Table will request an audience with the Minister of Economy, Luis Caputo, and the Secretary of Agriculture, Sergio Iraetato address the serious crisis that the agricultural sector is going through. The current situation, marked by low international prices, a historic drought and withholdingshas producers in an unsustainable position, which led rural entities to take urgent measures.

The key meeting to define the request was held at the headquarters of the Argentine Rural Confederations (CRA) at 600 México Street. There, the presidents of the four entities that make up the Liaison Table: Carlos Castagnani (CRA), Nicolás Pino (Argentine Rural Society), Andrea Sarnari (Argentine Agrarian Federation) and Lucas Magnano (Coninagro)decided to move forward with a joint demand for the elimination of Export Duties (DEX) and measures that alleviate the growing costs of the sector.

The CEEA did not rule out – once the meeting with Caputo and Iraeta had occurred – requesting an audience with Javier Milei, however they estimate that a priori “it is essential to know what the real possibilities of removing withholdings are.”

After the meeting, Carlos Castagnani, host and president of CRA, explained that “Due to the current drought, the retentions can no longer hold up. It is urgent that the retentions be eliminated so that the producer can continue to be productive and generate development throughout the country.”

He also explained that “the request for a hearing is because times have accelerated. We represent producers, we convey the discomfort in the sense of the concern they have. If our best partner, the climate, does not accompany us, we are going to ask the other partner (the state) also accompanies us. The ideal would be the elimination of withholdings, but well, that is what the technical team of the Liaison Table will be working to exchange ideas to see how it can be achieved.”

Andrea Sarnari, head of the Argentine Agrarian Federation, highlighted that “there are producers who, due to their scale, in this next campaign, if they are not profitable, are going to disappear, they are going to be bankrupt.”

Meanwhile, Lucas Magnano, president of Coninagro, explained that the hearing is requested because “that is the claim that our producers send us and it is the way, to try to manage and achieve that reduction in withholdings and that reduction and tax relief that is needed. the producer to continue producing.”

The impact of drought and retentions in agriculture

The reality of the Argentine countryside is alarming. According to data from the Rosario Stock Exchange (BCR), corn production fell by four million tons, with a harvest projection that went from 52 to 48 million tons. This means a decrease of 8.5% compared to the previous cycle, caused by the lack of rain, high temperatures and intense winds.

In the province of Buenos Aires, the situation is especially critical. Areas that historically receive 110 mm of rain in December barely recorded 30 mm, which seriously affected yields.

Soybeans, another key crop, face similar problems. The combination of water scarcity, low international prices and 33% withholdings puts producers at a crossroads.

The 2024/25 agricultural campaign has not yet ended, but with this panorama of low prices, high rents and costs that – due to erroneous policies in previous years – were far above the desired levels, the bankruptcy scenario could sentence thousands of producers. rural areas to the disappearance or exit of the business.

The claim of the Liaison Table to the Government

In an official statement, the Liaison Table highlighted the need to implement concrete measures that allow producers to sustain their activity in the face of a multidimensional crisis. Among the main complaints are:

  • Elimination of withholdings: Considered an unsustainable burden in the current context.
  • Immediate tax relief: Tax reduction to address rising production costs.
  • Strat infrastructureandgic: Improvement of rural roads, waterways, ports and railways to optimize logistics
  • Rural connectivity: Investments in the internet to enhance productivity and education.
  • Rural security: Immediate solutions to the increase in criminal acts in agricultural areas

The entities maintain that withholdings directly affect the competitiveness of producers, especially in a scenario where international prices reached historic lows. For this reason, the Liaison Table will seek to ensure that the Government listens to their proposals and adopts decisions that enhance agriculture.

It is important to remember that the agricultural sector not only generates economic development, but also fosters roots in the provinces. However, the combination of climatic, economic and fiscal factors is putting its productive capacity in check.

Rural leaders consider that it is essential that the Government sees the countryside as a strategic ally and not only as a contributing sector. In this sense, Nicolás Pino, president of the Argentine Rural Society, assured that “the sector permanently supports the country, but today it needs support. We want the Government to understand that the countryside cannot continue supporting this fiscal and productive burden. He also specified that “the idea is to make an exchange to demonstrate that from our place we are here to work, to seek a common good for the entire country. And that is what we are going to propose to the Government from now on, because the bases are pressing for a measure in that sense.”

The Board’s position remains firm and lies in insisting once again on the removal of withholdings, which they consider “a bad tax.”. If the desired meeting takes place, the idea would be to “work on each of the crops, determine what the emergencies are so that the Government can honestly say what can be done and that this allows for profitable production.”

The hearing with Caputo and Iraeta could be decisive in determining whether the Executive is willing to work together with rural entities and take measures to reverse this difficult scenario, in which – for now – no protest measures are being evaluated.

Source: Ambito

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