Argentine farmers back conservatives in election, hoping for freer
markets
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[August 12, 2023]
By Maximilian Heath and Miguel Lo Bianco
SAN VICENTE, Argentina (Reuters) - In Argentina's grains fields and
cattle ranches, farmers are hoping upcoming elections will bring
political change and an end to years of economic uncertainty, ushering
in freer markets with fewer currency controls and export limits.
The South American country will vote in open primary elections on Sunday
that will give an indication of how general elections in October will
go. The ruling Peronist coalition is facing a strong challenge by the
conservative opposition.
The government, battling an acute shortage of dollars, annual inflation
scraping 116%, and a fast declining currency, has imposed strict capital
controls, limited some exports, and hiked interest rates to 97%. That
has made business difficult in one of the world's top soyoil and meal
exporters and No. 3 corn exporter.
"It's been a tough time for the farm sector and we hope there will be a
change to boost production," Horacio Deciancio, 71, a rancher and head
of farming town San Vicente's local agricultural group, told Reuters
from his fields, surrounded by cows.
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Like many farmers he opposes the Peronists, who the industry has long
clashed with over taxes and export controls, and favored the main
opposition bloc Together for Change, which has a slight lead in opinion
polls.
"At least what they are talking about in the political campaign would
improve conditions for the sector," he said.
Competing to lead the Together for Change coalition are Buenos Aires
city mayor Horacio Larreta and ex-security minister Patricia Bullrich,
taking on the Peronist front-runner Sergio Massa, the current Minister
of Economy.
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Larreta and Bullrich have both pledged to remove taxes and limits on
exports of agricultural products, as well as eliminate caps on exchange
and capital markets, diverging only on how fast those controls could be
unwound.
"I think Larreta could be a good candidate for what he's promising,"
said Juan Carlos Ardohain in a field he rents in San Vicente for cattle.
Currency exchange instability in recent years had inflated his costs, he
said.
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![](../images/081223PIX/news_y36.jpg)
Cattle run in front of Juan Carlos
Ardohain, 49, on a farm he rents in San Vicente, on the outskirts of
Buenos Aires, Argentina August 10, 2023. REUTERS/Tomas Cuesta
![](http://archives.lincolndailynews.com/2023/Aug/12/images/ads/current/graue_lda_GREYTRUCKpreowned_070323.jpg)
Argentina's currency controls, which tightly limit access to
dollars, have stoked a flourishing black market for foreign currency
where greenbacks command over twice the official price, distorting
import and export markets.
Many farmers, or "chacareros", from the wide Pampean plains, the
engine room of Argentina's economy, say they will get behind the
conservative opposition as they did in 2015, when they helped propel
former President Mauricio Macri to power.
"What we need are free markets," Ricardo Firpo, an agricultural
producer from the breadbasket province of Santa Fe, said at the
annual fair of the Argentine Rural Society (SRA) in capital Buenos
Aires.
"We need to be able to export what is needed, to work freely, to be
able to bring in and withdraw foreign currency, a single exchange
rate, lower interest rates," he said.
At a recent event, the head of the powerful SRA chamber sat next to
Larreta in a show of support and warned that the farming sector was
in jeopardy due to what he called mismanagement of the economy by
the Peronist administration.
The government blames the country's economic woes on issues they
inherited, as well as the impact of the Ukraine war and a record
drought. Massa has promised to steady the economy, but his policies
have not directly addressed the farming sector, with whom the
Peronists have long had a mutual antagonism.
"We think the farm sector can give much more than it is doing now,"
farmer Deciancio said.
"But if they put their foot on our head, as is happening now, the
sector will not be able to come up to breathe."
(Reporting by Maximilian Heath and Miguel Lo Bianco; Editing by Adam
Jourdan and Rosalba O'Brien)
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