What should Argentine farmers do since the Government is taking 80% of their profits?

Question

Argentine Government, allied to Venezuela, decided to apply a 44% tax to exports trade.

Argentine farmers only recieve now 56% of the FOB price of their grains.

Inputs must be purchased at the international price, though.

This is making agriculture business extremely risky in Argentina, in a moment where commodities prices have internationally skyrocketed.

Farmers also have to still pay Income Tax, GST, PST, Land taxes, etc, etc, etc.

What would American farmers do if any Government decides to do what Argentine Government is doing?

Answer 1

Hey Bumper, It is really tough to hear you all are in that kind of problem. In the US we complain and think we have it bad. We just really don't realize how good we have it. We have a government that encourages agriculture and tries to help even if it gets in the way sometimes. I really don't know what we would do if our government did what yours is doing, but it would be the end of the USA as we know it today. A country that tries to destroy the incentive to it's farmers is a country in decline. I can only hope that Argentine will get a government that cares enough about its people and its farmers in time to help you out of the impossible situation that you are in.

Answer 2

If it can be done without harm to the farmers, stop the exporting. Only grow for the local markets,and self support. Curtail the financial boon to the government via the export fees and import costs. If you do not have to import foodstuffs for your animals and crops, then you are ahead of the game.

Farmers might see a lowering of their profits, but the costs will go down as well.  If the income is reduced, then so will be the income taxes they charge.

The farmers need to really work together on this to be a solid group to speak with the government

Answer 3

The whole concept of the huge amounts of food exported, regardless of the country, should have been scrutinized a long time ago. Food needs to remain local except that which is destined to feed the hungry. Exports are such a resource drain and have such an environmental impact that they need to be limited dramatically. Your South American farmers should feed their people and grow what they need and to h**l with exports. Because of differences in the economies the richer countries extract huge amounts of products at greatly reduced cost even with transportation. The economies of the world use these trade products like so many poker chips and attempt to seek some form of balance in imports and exports. In the end what was a desire to make ones place in the world a richer and more diverse one only benefits the few who have money. Someplace a farmer is used and abused and in another place someone else is not working because cheap food bought abroad leaves no work or meaningless work at the other end. I would rather tend my field than flip hamburgers or stuff little colored wires into the intrinsic mechanisms of decadence.

When the farmer is used and abused they need to change there tactics because the farmer is ultimately the one with the power. Grow locally needed products and keep them local. Find ways to trade those products for services when they are needed. Make sure that they provide the greatest levels of filled needs for their families and attempt to get off "the grid". With what is left, get it on a "local black market". Keep some for the government tax man and they will be left in peace. If taxation is without representation and it is unfair supporting the few in power with no care to the concerns of the people then any and all need to take the power back. Keep striking but also be proactive in how you proceed. You will win.

Answer 4

man it sucks that this is happening! but the only thing that people can do is go for a little visit to the government to do something. The people of Argentina that farm are literally the ones that run the government, people can not survive without food. What the government there is doing is taking prfits away from the people that keep them in business and feed their country. It is a shame that people are so short minded not to realize this. Farmers are an endangered species, and people ought to be worried. Bring up the argument that without the farmers of Argentina, the country would be nowhere because the people would be dead from starvation.

Answer 5

I know next to nothing about agriculture in Argentine or the problems they are having, but for Mike to say, "Take care of your own needs and to h**l with the exports is almost inhumane". They are producing enough food for export to feed over 300 million people that will likely starve to death without it. Not to mention that doing away with exports of agriculture would completely wreak the nations economy, as it would wreck the economy of your own nation if exports were stopped in your own country, Mike. I hope the strike by Argentine will do the job to turn the government leaders over and get someone in office that will help them out.