Agricultural Policies in Argentina

Page 1

agriculture policy brief

Agricultural Policies in Argentina

March 2019

rgentinian agro-food production and exports have grown remarkably in recent decades, A driven by technology and innovation led by a dynamic private sector in the Pampas region. gricultural policies have been taxing producers but supporting general services that enhance A innovation and productivity, such as research, extension and animal and plant health. ackling macroeconomic imbalances is the main priority; in the long term, export taxes should T be phased out and policy should focus more on environmental sustainability and agricultural innovation across regions.

What’s the issue? Well-endowed with natural resources and human capital, Argentina is a major player in many agricultural world markets, with large net exports of soybeans, wheat, corn, sunflower, sorghum, rice, beef and milk. In the Pampas region, the sector has experienced a major structural transformation, largely driven by the adoption of new technologies such as no-tillage and genetically modified varieties, and the expansion of the production and export of soybeans. However, innovations have not been even across regions; outside the Pampas, “regional economies”

have experienced low dynamism and limited public investment on agricultural infrastructure, R&D, extension services, and technical assistance. While innovation process and the expansion of the agricultural frontier has opened up new opportunities for the sector, it has also increased pressures on the environment, in particular high deforestation rates and the increase in the use of pesticides.

Level and composition of agricultural support in Argentina, 1997-2017 Market price support (left scale)

Budgetary transfers (left scale)

% Producer Support Estimate (right scale)

MPS and budgetary support, billion USD

% PSE

2

5

4

0

0

0

-2 - 1

-9

-4

-10

-6

-15 - 20

-8

-20

-10

- 26

-12

- 30

-14

-25

- 26

-30

- 27

-35 - 39

-16

-20

-40

- 42

-18

-22

-5

-45 -50

- 51 1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: (OECD, 2018), “Producer and Consumer Estimates”, OECD Agriculture Statistics Database

www.oecd.org/agriculture

tad.contact@oecd.org

@OECDagriculture

2013

2014

2015

2016

2017

-55


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Agricultural Policies in Argentina by OECD - Issuu