Following the government’s announcement of the launch of the new soybean dollar, which will go live next Monday and be priced at $230, the Argentine Agricultural Federation expressed its disagreement with the new measure implemented and considered it to be “a patch”.

It was through a statement released on Friday that the rural producers’ organization complained about the news, claiming that the new regulations “hurt them”.

Likewise, they stressed their concern about the effects this could cause and called for the implementation of a global agricultural policy.

“From the Argentine Agrarian Federation we reiterate that this is not the way forward and that continuing to multiply exchange rates threatens the sector and the economy at large. Those patchwork policies are that: patches that imply some advantage for the few and complicate the majority”They started by saying in the document.

And they added: “According to the experience that we noted in the announcement of the first edition of this program, which unfortunately then became a reality, we see that it only served to continue to focus, benefiting actors who are not the producers, let alone those small and medium-sized than directly we have no more soybeans to sell“.

In this sense, they shared the experience obtained after the last implementation of the “soy dollar” last September, which they defined as “negative”.

“The previous time had a very strong and negative impact on the price of rents, inputs from regional economies, as well as inputs from poultry, beef and pork, and dairy, so not only producers do not benefit from anything , but we directly harm ourselves,” the FAA said.

Then they once again expressed their discontent with the Government for the announcement of this program which, according to Minister Sergio Massa, “seeks to encourage producers to liquidate the harvest they have withheld” and will last until December 31st.

“The country’s foreign exchange income needs cannot always be met by the sector itselfnor can it always benefit them and harm minor actors. The effect of concentration of the economy produced by this measure is very worrying, which means that more and more small and medium-sized producers continue to leave the production circuit and the rural network”, say the producers in the note.

And they concluded with a request to the national authorities: “It is necessary for Argentina to have a comprehensive agricultural policy that meets the needs of all producers, contains regional economies and contemplates the dramatic situation we are suffering due to drought, frost and other storms, this is the real and urgent agenda of the producers”.

What will the new soybean dollar starting this Monday look like?

Driven by the need to strengthen the Central Bank’s reserves and thus achieve the objectives agreed with the IMF, the economic team launched a new version of the “soy dollar” program which it applied last September. It will now trade at $230 and look to secure a $3,000 million sale.

The new soybean dollar will take effect from next Monday, November 28, and will have a price thirty pesos higher than the first version, which reached 200 dollars.

An order will be issued Monday with a new value for the dollar of soybeans of $230. “It’s good to give certainties to the producer,” Massa said.

The new price of $230 updates the value of the soybean dollar based on the jump the wholesale dollar has made during this period, from $150 to $165. So, at this level, producers receive a dollar more than 39% compared to that received by the rest of the exporters.

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