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Farmers in Argentina are anticipating political change and an end to economic uncertainty as the country approaches upcoming elections. Hoping for freer markets with fewer currency controls and export limits, farmers are eager to see a shift towards a more favorable business environment.
The ruling Peronist coalition, facing a strong challenge from the conservative opposition, has implemented strict capital controls, limited exports, and raised interest rates in an effort to combat a shortage of dollars, soaring inflation, and a declining currency. These measures have made it challenging for Argentina, one of the top exporters of soyoil, meal, and corn, to conduct business effectively.
Farmers, who have long clashed with the Peronists over taxes and export control, are supporting the main opposition bloc Together for Change, which is currently leading in opinion polls. Many farmers are hopeful that the policies being discussed during the political campaign will improve the conditions for the agricultural sector.
The two contenders for the leadership of the Together for Change coalition are Buenos Aires city mayor Horacio Larreta and former security minister Patricia Bullrich. Both candidates have promised to remove taxes and limits on agricultural exports, as well as eliminate restrictions on the exchange and capital markets. Their only divergence lies in the pace at which these controls should be lifted.
The currency controls in Argentina, which severely limit access to dollars, have led to a thriving black market for foreign currency, with the unofficial exchange rate being more than double the official rate. This distortion has affected import and export markets.
Many farmers from the Pampean plains, the engine room of Argentina’s economy, plan to support the conservative opposition, as they did in 2015 when they helped former President Mauricio Macri come to power. Their main demand is for free markets that allow them to export and work freely, have unrestricted access to foreign currency, a single exchange rate, and lower interest rates.
The agricultural sector is seen as critical for stabilizing the economy. Farmers believe that if the government continues to impose burdensome measures on their sector, it will stifle its potential for growth.
As Argentina prepares for the primary elections and the subsequent general elections in October, farmers are hopeful that the outcome will bring the political and economic changes they desire.
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