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sandensea

(21,530 posts)
Mon Mar 9, 2020, 06:20 PM Mar 2020

Argentine landowners stage 4-day farm lockout over export tax hike

Argentina's Liaison Coordinator of Agricultural Entities (CEEA), the country's top agricultural lobby, launched a 4-day grain and beef marketing lockout today.

The lockout was ordered in protest over an increase in export duties for soy by 3 points, from 30% to 33%, for farms producing over 1,000 tons.

The new rate - which follows a 5.3-point hike passed by Congress on December 21 - is the legal maximum set by President Alberto Fernández, who took office in December amid the worst debt crisis and recession in two decades.

Over 74% of farms will see no change in export tax rates, which are on a sliding scale from 20% for those producing 65 tons or less, to 30% to those up to 1,000 tons. The nation's 24 other export crops were not affected.

This week's lockout has failed to achieve the near-total compliance seen during the 2008 lockout - mainly because the 3-point tax hike only applies to larger farms, many of which are corporate-owned.

"70% of farmers in the Argentine Agrarian Federation (FAA) are not taking part in the lockout," Nélida Sereno, head of the FAA's Tandíl chapter, noted. Incidents of lockout supporters stopping grain trucks were reported.

The Port of Rosario, the nation's leading shipping point for soy, recorded 4,324 trucks today - about average for a Monday in March, and a 72% jump from last Monday. Cattle transport was likewise higher.

In context

The world's third-largest soy producer, Argentina produced 55 million tons of soybeans last year and exported $17 billion of soy and derivatives - some 26% of total exports.

President Fernández is currently overseeing negotiations over a restructuring of over $70 billion of the country's $195 public foreign debt.

Today's soy export tax hike is projected to raise a net $274 million in added revenue.

Former FAA head Eduardo Buzzi, who helped lead the 2008 lockout, has come out against this week's lockout.

"Any (tax) hike bothers farmers," he noted. "But this has to be viewed in context - with 38% poverty, and large part of society that's been screwed."

At: https://translate.google.com/translate?hl=en&tab=wT1&sl=auto&tl=en&u=https%3A%2F%2Fwww.telam.com.ar%2Fnotas%2F202003%2F438960-paro-campo-mesa-enlace-agro-tractores-retenciones-federacion-agraria.html



The heads of the five groups making up the Mesa de Enlace ("Liaison Roundtable" ) - Argentina's main agricultural lobby - walk past the Agriculture Ministry following tax hike negotiations last week in which they had "ruled out a lockout."

This week's about-face was attributed by some to lawmakers belonging to the right-wing "Let's Change" coalition that was defeated in last October's election.

"There's a sector (among landowners) fanning protest, ignoring political logic and ongoing negotiations," a prominent small farmer, Eduardo Buzzi, lamented. "Some farmers take political opposition as a vocation."
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Argentine landowners stage 4-day farm lockout over export tax hike (Original Post) sandensea Mar 2020 OP
Interesting, so what exactly is a farm lock out? Farmer-Rick Mar 2020 #1
Exactly. sandensea Mar 2020 #2
Oh, good info to know. Thanks Farmer-Rick Mar 2020 #3
You're welcome, Rick. sandensea Mar 2020 #4
Fucking right wing governments get it wrong every single time Warpy Mar 2020 #5
It's a center-left government at the moment. They have their work cut out for them. sandensea Mar 2020 #6
Thank you for the education Warpy Mar 2020 #7
Good analogy. Hadn't thought of that. sandensea Mar 2020 #8

Farmer-Rick

(10,072 posts)
1. Interesting, so what exactly is a farm lock out?
Mon Mar 9, 2020, 06:30 PM
Mar 2020

How does it work? Do farmers stop shipping out or even selling domestically?



sandensea

(21,530 posts)
2. Exactly.
Mon Mar 9, 2020, 06:36 PM
Mar 2020

It's meant to pressure the administration into what they hope is a back-track on the 3-point hike.

The lockout is meant to impact tax revenue - and more importantly, export dollar revenues.

It also, of course, feeds perfectly into right-wing media - which, as you can imagine, have been publicizing the lockout as much as possible.

Faux News has nothing on Argentina's right-wing media in terms of deviousness and sheer viciousness, let me tell you.

sandensea

(21,530 posts)
4. You're welcome, Rick.
Mon Mar 9, 2020, 07:20 PM
Mar 2020

Big landowners in Latin America, as you know, are used to getting their way.

In Argentina's case, agriculture these days is just 7% of GDP - but they still earn over half the export revenues.

Like most countries, Argentina must earn or borrow its hard currency - no $20 trillion ledger entries like the Fed was able to pull in '09 (and thank goodness they could).

Still - it's good that smaller landowners are seeing as the power play it is, and are largely refusing to go along.

Warpy

(110,913 posts)
5. Fucking right wing governments get it wrong every single time
Mon Mar 9, 2020, 08:02 PM
Mar 2020

Fellas, if you want LESS of something, like people dying from cigarettes, you TAX IT.

If you want MORE of something, like food, you SUPPORT it.

sandensea

(21,530 posts)
6. It's a center-left government at the moment. They have their work cut out for them.
Mon Mar 9, 2020, 09:01 PM
Mar 2020

Large landowners in Argentina are what Wall Street executives are here in the U.S.:

Not only some of the richest people in the country; but arguably the ones with more political power than any single group.

Like Obama in some ways, Fernández inherited a massive debt crisis in part because his right-wing predecessor (and Trump pal) Macri cut their taxes so deeply.

And now that Fernández is trying to re-negotiate terms with bondholders, he needs to show he's trying to raise as much revenue as possible.

Landowners were the obvious place to start looking.

Warpy

(110,913 posts)
7. Thank you for the education
Mon Mar 9, 2020, 09:08 PM
Mar 2020

I thought Macri was still clinging on by his fingernails. My attention has been mostly elsewhere of late.

I wish Fernandez the best of luck. Land based wealth is the toughest nut of all to crack. Even a defeated and ruined south had the wherewithal to stop land reform after the Civil War, ushering in sharecropping and Jim Crow to make sure the poorest stayed that way.

Those big land barons won't cut their own financial throats for long.

sandensea

(21,530 posts)
8. Good analogy. Hadn't thought of that.
Mon Mar 9, 2020, 09:20 PM
Mar 2020

Having studied Argentina for years, I can tell you that their landowning class - as a group - is a lot like landowners in the Antebellum South as far as their mentality and world-view.

You know: A little to the right of Attila the Hun, elitist, racist, etc.

Fernández, who defeated Macri last October, is really putting his neck on the line on this one.

Back in the 50's, '60s and '70s, as you may know, presidents who tried what he's trying now, were summarily deposed in military coups.

So he was careful on this one: the tax hike only applies to the 26% highest-earning landowners.

A heavy lift even so - but doable.

Here's hoping Joe Biden (or Bernie!) get to meet him next year.

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