LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

December 13, 2022

Will New Subsidies Help Argentina's Farmers Recover?

Drought has been ravaging crops this year in Argentina. A soybean harvest in the South American country is pictured. // File Photo: Argentine Government.

Q

A

Patricio DellaGiovanna, affiliate fellow in the agrarian studies program at the Yale MacMillan Center and professor of international relations at the Argentine Catholic University in Buenos Aires: “The situation facing agricultural production in Argentina has been quite complex. To the macroeconomic problems–inflation above 100 percent, restrictions on imports, budget restrictions and a shortage of U.S. dollars—has been added a drought that is unprecedented in recent times. This drought has mainly affected the core area of cereal production in the Pampas region, known as the zona núcleo. This is equivalent to the Corn Belt in the United States. There are few places in the world that have large reserves of ‘black’ soil, that is, with a high humus content. We find the granary of the world in Ukraine, the Midwestern United States and the Pampas region of South America. The main supplier of dollars (genuine resources) of the Argentine economy is…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Ernesto Revilla
Head of Latin American Economics, Citi

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