As I am from Argentina and have lived there, and as an expat living in the United States, I feel compelled to write regarding this article. I'm not saying that farmer's should be loaded with debt, and not taking care of the land we will leave for our children, but I want to update everyone on what is currently occurring in Argentina.
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Note the date of the article. That's not the case now in 2007. Monsanto and Roundup have drastically changed the agricultural scenario in Argentina. Almost all corn and soybeans are Roundup Ready- which implies that the farmers have had to outlay lots of cash to pay Monsanto for the seeds and the machinery that goes along with it. The big increase in agricultural production has been partly due to farming land that had previously been unfarmable due to the genetically modified seeds.
The economic crisis of 2001-2004 in Argentina has also changed the distribution of cash funds. During the economic stability of President Menem's reign, lots of Argentines got into mortgages and car payments for the first time in their lives. When the government seized everyone's savings in dollars (Argentine peso was pegged to the US Dollar one for one), when they realized that they (the government) didn't have enough US Dollars to back up this exchange rate, the economy collapsed and there we're many mortgages and loans that could not be paid. Foreclosures we're rampant. In comparison to US agricultural land, Argentine farm land is still cheap, but for those that earn Argentine pesos, it is very expensive.
The current tax rate, and the current export costs, with oil at $80, is a lot higher than in 1985!
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Posted in Home Improvement Post Date 03/30/2017
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