A state policy for the countryside, just around the corner?

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A state policy for the countryside, just around the corner?

The Minister of Agriculture, Julián Domínguez, and one of his predecessors, Ricardo Buryaile, are conciliatory in the midst of the political rift. The image reflects a moment of the meeting they had this week in the Chamber of Deputies, together with pro-government and opposition lawmakers and agro-industrial leaders.

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In the middle of the deep crisis that we Argentines suffer, with almost half of the population with unsatisfied basic needs and almost everything else also impoverished, without fuel to work and transport food, nor a horizon of solutions in sight … It seems that everything expected is worse … We come on an eloquent decaying slip and few can reverse the trend.

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But this week, even in the windy cold, mentioned A light at the end of the tunnel. It was at the meeting of the Agriculture Commission of the Chamber of Deputies, which was attended by the Minister Julian Dominguez -representative of the Government of the area- who wove bridges with opposition lawmakers – Also attended by officials – and rural directors with whom he had already discussed the Agro-industrial promotion law announced by president Alberto Fernández and vice president Cristina Fernández last year.

What is the interesting thing that happened there, in that institution which unfortunately has little credibility? A concordist will was in the air, far from the crevasse usual, to promote this regulation.

“The more difficult the situation, the more urgent the solution,” he reflected pragmatically. Ricardo Buriaile (UCR)the chairman of the convocation commission, and promoter of the possible adhesion of the opposition to the initiative.

The leader of Formosa, former Minister of Agro-industry from 2015 to 2019, said that “We need to create predictability.. There are still discussions to settle, but it is in everyone’s interest to reach an agreement and if this bill is modified to make it feasible, the opposition will accompany it ”.

Domínguez assured that “the best message that Argentina, producers and value chains can receive is that we build consensus to generate investments, jobs and industrialize rurality “.

In this sense, he indicated that the initiative is “a collective construction, born from the private sector and articulated with the public”, which “collects the federal sentiment so that Argentina can promote the value generation strategy “.

From the Argentine Agro-Industrial Council (CAA) he said that the overall aim of the bill is “to promote agro-industrial development, through the increased investment, employment and production“. They specify that the set of measures favors, in 2030, exports of 100,000 million dollars a year and the generation of 270,000 jobs.

“It can have an impact on all agro-industrial activities, and in particular on those of regional economies,” he said. Giuseppe Martinispokesperson for the Council. And he added it sustainable development is soughtbecause Argentina has the potential to consolidate as a leader in international food trade of animal and vegetable origin, animal feed and exporter of biofuels and technologies of the agri-food ecosystem “.

Alfredo Passeyroexecutive director of the Asociación Semilleros Argentinos (ASA) and coordinator in the AAC of this initiative, highlighted: “The project to promote agro-industrial development is a great example of dialogue and joint work between the various representatives of the agri-food sector and the State “.

It should be noted that ruralists of the liaison table and self-convened have questioned the initiative but the majority would not oppose if there were concrete advances that strengthen the country’s development engine.

Incentives, the concept of “carrot” instead of “stick”

It provides for the current bill of “AgrobioIndustriale Promotion”. Advance depreciation and tax breaks for new investments, purchases of seeds and fertilizers, VAT refund for extraordinary investments and changes to the company evaluation system for the payment of Irpef.

Domínguez stressed that the project is “an additional stimulus for livestock”, as it establishes changes in the assessment of the ownership of the income tax. These are “tools that are added to the GanAr Plan”, which launched the agricultural portfolio in coordination with the provinces. “The goal is produce more and better meat. We want more animals per mother, we want more meat per animal. Increases the level of productivity and increases the weight per animal “held.

The pushed by the Central Bank to fixed-term farmers, so that exports are liquidated with the promise that producers will keep their grain prices in dollars. Of the recently completed soybean harvest, half was sold.

Producers may or may not trust this tool, offered per hour only by Banco Nación, but it is clear that it is a incentive and not another form of tax burden. Perhaps we are beginning to understand that “if you tried more carrots instead of sticks”, the field would probably respond with more production.

Necessity illuminates unexpected political scenarios

The background is that we are in a special political moment in which neither the ruling party nor the opposition can do without the camp: this explains, beyond a few sentences for the platform, that Alberto and Cristina Fernández, Julián Domínguez, Daniel Scioli and the leaders most of the opposition visionaries agree on this If rural production is not supported, the “goose that lays the golden eggs” is at risk.which supports the country’s economy and maintains regular levels of activity, especially in the interior.

The prospect raises no doubts. Everyone knows that whoever comes to power next year will depend on the economic dynamism of agribusiness. And they understand it even if they are partial measures and the debate on withholding taxes and the use of these funds is pending in infrastructures in production areas, a fiscal boost to fertilizationfor better use seeds Already investments in livestock in the medium term, among other measures, it would be a breath of fresh air.

It is clear that we are not talking about solving all Argentine problems. But It can be a first step on a long road. with a structural axis of clear and stable rules to advance, perhaps, in a sustained way.

Need has the face of a heretic, it illuminates unexpected scenarios, and this could be one of them.

It is not a question of being naive, much less in the unfathomable complexities of Argentina’s petty politics. But without looking ahead, it is difficult to move forward. Together with the recommended pessimism of intelligenceit is necessary – Antonio Gramsci taught – to put some of the it will be optimism… Worse still, we can’t – strictly speaking, we shouldn’t-, be …

Source: Clarin

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