The 7 rural arguments that convinced Macri not to apply deductions – 03/07/2018

The mention that retentions could be applied again in field exports, after a 60% revival of the dollar as it happened almost always in Argentina, produced the miracle. And the Domain Liaison Committee that brings together the entities of the sector has been reborn with force.

Cred Dardo Chiesa played the hardest statements and then came to the audience with President Macri. It was the second time that they saw it for today 's meeting at 2 pm at Casa Rosada, which everyone described as very relaxed, n' # 39; did not last an hour and in which they were only invited with water.

yes the rural people prepared for this summit and the technicians of the Rural, the ARC, Coninagro and the Agrarian Federation have elaborated a document to convince the President that he repeats or delays the reduction promised to soybeans, the tax coffers " end up losing." They succeeded

Here are their arguments:

• International grain prices are down. If you measure the value of products between 2008 and 2015, the odds for soybeans dropped by 39% soybean oil by 42% and soybean meal by 20%. In the case of corn, the decrease is 43% and in wheat 31% compared to the average price of the same products between 2008 and 2014.

• The $ 28 per dollar still collected did not not reached the historical average of the last 18 years, that is $ 33.70 . The high exchange rate was the one that averaged between 2002 and 2004, at $ 48 per dollar today.

• For agriculture between 43% and 72% of costs are denominated in dollars, depending on the product . In soybean, it is 59%, in 61% corn and wheat, 55%.

• The activity of the field has a multiplier effect that is spreading in the interior. Without retentions, the field reacted. When they were phased out in 2016, production went from 109 to 125 million tonnes. This means 800,000 additional trips by truck. The dollar stock of credit in the sector has increased by 22% since the change of government. It is more financial services carried by the sector, fertilizer consumption rising from 2.4 million tonnes to 3.7 million tonnes (56% more than in 2015).

• The sale of tractors rose from 5,319 to 9,696 units in 2017, 82% more than in 2015. The sale of harvesters rose from 693 to 1455 units in 2017, ie 110% more than in 2015. The sale of vans rose from 64,998 in 2015 to 76,663 in 2017, or 18% more than in 2015.

• All of this largest figure in the world. # 39; business increases the business number of different sectors, resulting in higher perception of general taxes, such as VAT, more gross income, plus income tax, plus internal taxes such as fuel

• Deductions do not unpack food prices. In wheat, the weight of the cereal in a kilo of bread does not reach 11% of the value paid by the consumer. In soybeans, 90% of production is destined for export markets. the case of corn, without retentions, spawned an initial situation of increased production costs of milk, poultry, pigs and feedlots, but the answer to the price was a greater offer cereals in the medium term, which ended by balancing price relationships with historical levels.