Leading Argentine small farmers group supports increase in export taxes
The National Agrarian Forum (FAN), whose members employ 54% of all farm labor in Argentina, issued a resolution today in support of agricultural export tax hikes announced Saturday by President Alberto Fernández.
The additional 5.3% withholding on grain and soy exports, and 4% on most other farm and seafood exports, is expected to raise an additional $2 billion in annual federal tax revenue for Argentina - currently reeling from a debt crisis inherited from the right-wing Mauricio Macri administration that left office on December 10.
"The National Agrarian Forum supports redistributive measures such as export withholdings," the FAN resolution stated, "especially in times of a Social and Food Emergency."
Consumer prices quadrupled during Macri's four-year term - causing a 23% fall in real pay and a doubling in hunger to 8.9%.
Over 2,000 small farmers went out of business amid soaring costs and interest rates.
FAN distanced themselves from larger landowners in the Argentine Rural Society (SRA)-led Mesa de Enlace roundtable - which expressed opposition to the tax hike while remaining "open to dialogue."
The new policy, according to President Fernández, "restores rates to those applied by Macri" last year - in the early months of the debt crisis.
Two agricultures
"There isn't one agriculture," the FAN recalled.
"On one hand, there is concentrated agriculture that gains through financial speculation and devaluation, which evicts rural and indigenous families, and is not concerned with the destruction of native forests or pesticide contamination."
"On the other hand, we in cooperative agriculture have been harmed by devaluation."
FAN and the Mesa de Enlace agree on segmented withholding, which would reduce withholding for smaller and less profitable farm exporters.
At: https://translate.google.com/translate?hl=en&tab=wT&sl=auto&tl=en&u=http%3A%2F%2Fwww.biodiversidadla.org%2FNoticias%2FRetenciones-el-campo-que-si-las-apoya
Leaders of the Mesa de Enlace (Liaison Roundtable), representing larger landowners, following a meeting with Argentine Agriculture Minister Luis Basterra.
The National Agrarian Forum, representing smaller farmers - over half the total - distanced itself from the roundtable by backing higher export taxes - but has expressed the need for "segmented withholding" proportional to profitability.
"Let those who have more, pay more."
