Mar 2 • 13:02 UTC 🇦🇷 Argentina La Nacion (ES)

Without retentions and with better credits: a report focused on what is needed for the continuity of agricultural businesses

A report highlights the need for the elimination of retentions, crop rotation, and long-term credits to sustain agricultural producers in Argentina.

A recent study conducted for the Sociedad Rural de Gualeguay in Entre Ríos has examined the agricultural sector's challenges over the last twelve campaigns, particularly focusing on the pressing need for structural changes. The study emphasizes that eliminating retentions, promoting crop rotation with grasses, and providing long-term credit options are essential for agricultural producers to start repaying debts that have accumulated since the 2020/21 campaign and worsened during the 2022/23 cycle. Without these changes, the report warns that more agricultural producers may disappear due to financial constraints.

The adviser, Alesio Quattrochi, analyzed seven distinct cases of agricultural producers who are part of the Sociedad Rural, each varying in scale, profile, and risk aversion. However, all of them share a common characteristic: they operate on leased land, which represents 70% of agriculture in Argentina, averaging a rental cost of 10 quintals of soy per hectare. The findings suggest that tailored credit solutions linked to the profitability of agriculture are critical for these producers.

The implications of this report are significant as they highlight systemic issues within the Argentine agricultural sector and call for policy changes that could significantly impact the livelihoods of many farmers. The agriculture sector is crucial for Argentina's economy, and addressing these financial and operational challenges is vital for sustaining production levels and ensuring food security in the region.

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