Seeds of Discontent: Argentina’s Farmers Turn Cool on Their Man Macri

Argentine President Mauricio Macri rode to power in 2015 promising to bolster the farming sector and cut back taxes that had stymied exports. The country’s backbone industry welcomed him with open arms after years of export controls aimed at keeping domestic prices low.

The powerful sector is now cooling on the center-right president, frustrated by revived export tariffs and sky-high borrowing rates that have bruised smaller farmers, a concern for Macri ahead of national elections later in the year.

Argentina’s farming sector, which brings in more than half of the export dollars in South America’s second-biggest economy, is a key barometer for Macri, who has sold himself as a champion of business and industry, none more so than the country’s huge soy, wheat and corn farms.

“We publicly supported the administration in the last elections [mid-terms in 2017] as we believed they were managing the policies farmers needed,” said Carlos Iannizzotto, president of the Confederación Intercooperativa Agropecuaria, one of the country’s four major farming bodies. “Today we cannot do the same.”

Reuters spoke to the leaders at all four associations, who collectively make up the influential “Mesa de Enlace” or liaison committee. They cited Macri’s backtracking on cutting taxes on exports and the high cost of credit with interest rates above 60 percent.

The farm lobbies do not directly sway the votes of a huge proportion of voters, analysts and pollsters cautioned, but said that their weakening support was a sharp warning sign for Macri ahead of the October election, which is expected to be closely fought.

Dardo Chiesa, president of a second lobby, the Confederaciones Rurales Argentinas, said farmers had become “disappointed” with Macri’s performance on the economy, with a tumbling peso and inflation running at over 50 percent.

“The first issue in terms of voting this year is the economy, and the reality is that the government’s economic management has not satisfied the sector,” he told Reuters.

‘I wanted change’

Everything had started so well. 

After Macri’s election in 2015 he eliminated export taxes on corn and wheat and lowered those for soy; he also got rid of limits on corn and wheat exports — gaining cheers from farmers.

However, an acute financial crisis last year forced Macri to take a $56.3 billion lifeline from the International Monetary Fund (IMF), in return pledging to balance the country’s deficit — including restarting taxes on exports.

In addition, to deal with inflation and protect the peso currency, the government has hiked interest rates to almost 70 percent, choking off the ability of farmers and other small businesses to obtain funds to expand and buy equipment.

Sales of combine harvesters, tractors and seeding machines plummeted last year, government data showed.

“I voted for Macri because I wanted a change, but Macri has really let us down,” Carlos Boffini, who runs a 400-hectare farm in Colón, in the province of Buenos Aires, told Reuters.

“[Macri] spoke about how the export taxes were unfair. Yet here they are again. He was going to get rid of a lot of things and he did not get rid of anything.”

To be sure, not all farmers are turning away from Macri, who is still viewed by many as the most business-friendly candidate.

Daniel Pelegrina, head of Sociedad Rural Argentina, which generally represents larger farming groups, stopped short of giving his direct support for the president but said the government’s policies were roughly in the right direction.

“Argentina needs to be reintegrated and active globally, it needs to have an export-oriented economy,” he said, adding that there is, however, a need to review the high taxes.

If not Macri, then who?

Macri is facing a split field in the elections that start in October before a potential run-off if there is no clear winner.

Likely rivals include ex-President Cristina Fernandez de Kirchner, whose populist and interventionist policies made her deeply unpopular with farmers. More moderate members of the Peronist opposition include former economy minister Roberto Lavagna and former congressman Sergio Massa.

Carlos Achetone, president of the Federación Agraria Argentina (FAA), the last of the four main agricultural bodies, said many farmers were looking beyond Macri if there was a “third alternative with substance.”

Analysts and farmers, however, said if the election ended up being between Macri and Fernandez — as many polls expect if she runs — then farmers would have little choice about how to vote.

“There is a consensus of not returning to populism. Argentina cannot return to populism,” said Chiesa, referring to Fernandez’s administration which had introduced export quotas on grains and meat to keep domestic prices low for consumers.

Farmer Boffini agreed, adding the sector’s general dislike of the former leader could well be Macri’s saving grace.

“Do you know what Macri’s advantage is? It’s that we don’t like Cristina and so if Cristina shows up and there are no other options, we will simply vote for Macri so that Cristina does not get in,” he said.

напишіть відгук:

Discover more from ЦЕНЗОРА.NET

Subscribe now to keep reading and get access to the full archive.

Continue reading