After the initial rejection of the “soy dollar”, the Central and Agriculture met with the leaders of the sector to bring the positions closer

With the “soy dollar” proposal, the government is convinced that it has built a bridge with the countryside. But on the other hand, the agricultural producers they do not perceive incentives to intensify sales of what is left of the last harvest.

In this context, this Wednesday in two hours of meeting to approximate the positions, which were attended, among other officials, by the president of the Central Bank (BCRA), Miguel Angel Pesce, and the Minister of Agriculture, Julián Domínguez. together with 80 agricultural leaders, grain market players and banks.

The meeting was promoted by the MATba-Rofex futures market and focused on operational details of the proposalas the possibility to extend its validity beyond August 31st. Eventually, A Technical table to analyze this and other possible changes.

The official expectation, which led to a surprising change in criteria and motivated this nod to agribusiness, is to obtain $ 2,500 million until August 31st. However, the recipients are not motivated by the offer e the most positive calculations only go up to $ 1,000 million.

Beyond the technical complexity of the measure, the scenario is clear: farmers use their cereals as store of value and they do not want to exchange them for pesos, in the same sense as most Argentines, due to the context of high financial volatility and informal devaluation of the Argentine currency.

In general, manufacturers believe that the 13% improvement in profitability promoted by the instruments suggested by the Central Bank does not guarantee the value of its beans. And they prefer to keep them, as physical goods, to deliver them according to what they need cover costs agronomic – in spring the sowing of corn and soybeans – or for private consumption.

The farmers’ first reaction was rather critical. From the initial confusion, the majority passed through an attitude of indifference, and there were those who expressed anger at the “confusion and insufficiency” of the provision. Even among those who are convinced that the proposal will have no effect, many believe the government does not aspire to get dollars, but rather to position farmers as insensitive to the “needs of the country,” according to the president.

The vice president of Country company, Marcos Pereda, believes that the proposal “represents an improvement, but is very confused about its implementation. We will see how its implementation will evolve”.

From Argentina Agricultural Federation They considered that “this is a cosmetic measure, which clearly responds to the political needs of the government and does not seek to respond to rural demands”.

They pointed out that “the majority of small and medium-sized producers today see how to pay their bills instead of thinking about saving in a financial and exchange circuit that seems more like a scam than measures that give the producer certainty and predictability. Smaller producers are not prepared to play in a timba. What we want is to produce. This pushes us to leave the production circuit ”.

Meanwhile, from Coninagro Doubts have been raised. They believe that “it would be an excellent tool if it were simple, less bureaucratic, contemplating the commercial chain and continuing over time”.

And they promote other alternatives that make it possible to program production activities, for example through access to essential inputs for sowing such as fertilizers, through exchange procedures and tariff reductions in operations, to offer, among others, a stimulus that remains in the time.

Economist David Miazzo, from Agricultural Foundation for Development of Argentina (FADA) it does not foresee a “wave of sales”. He stated that “if a producer sells a truck of soybeans because he has to pay the rent for the field or buy fertilizers, and he doesn’t buy dollars, he continues to receive the same as before. For this reason the little ones, who do not have the change to dollarize, will not be able to take advantage of it ”.

However, although it had no results on its first day, the proposal was not completely rejected. The Central Bank calculates that the concrete improvement ranges from the 152 dollars that a producer could obtain until Monday, operating with the MEP dollar, to the 187 dollars that it assures that it would get with the new measure.

The spokespersons of the BCRA stated that the body “will work to solve the difficulties of implementation, which originate from the participation in the marketing process of cooperatives and collectors”.

Despite the tension, the stage is still open. Although skepticism prevails, the more optimistic confidence that with some technical corrections and better communication could be added the adhesion of more manufacturers. “It is a proposal that does not break the rules of the market and that must be communicated well to take advantage of it,” he said Clarione a participant in that meeting.

For now, the situation has evolved from the accusation of speculators raised by President Alberto Fernández to this attempt to bring the positions closer. The protest of the social organizations announced on Saturday at the Rural Exposition in Palermo would also be suspended or would have less virulence, as security minister Aníbal Fernández promised the peasants.