March 13, 2025
With seed, labor and other costs rising in the country, even the stability brought by reduced inflation may not be enough to provide profits for farmers. How will the local industry adapt?
Macroeconomic stability in Argentina has improved, but rising input costs are squeezing farmers' profits.
Some commentators have called Argentina’s escape from financial doom a "miracle" – one performed by Argentina's controversial President, Javier Milei, who was appointed in December 2023. In reality, the recovery process has followed the cold logic of austerity rather than anything mystical, simply cutting public expenditure, regulation, and export taxes to balance the country’s books.
The result has been an upturn in the public purse – monthly inflation is down to just 2.2% compared to 25% in December 2024, and the country has ended its fiscal deficit for the first time in 123 years. Even with climate challenges in the equation, agricultural exports are thriving, but the turnaround may not be all good news for farmers – despite the improved economic outlook overall, their margins may suffer.
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