New program in Argentina thru ReNAF

[Klause]

Basically like a cash advance here... They advance 50% of your planting costs (submit paperwork showing costs) at seeding time. No dollar limit no interest charges.


Rent/mortgage payments, seed, fertilizer, fuel, chemicals, irrigation costs, and labour are eligible planting costs.


We

[AlbertaFarmer5]

That is not an insignificant subsidy, considering their interest rates:

"The central bank of Argentina raised the benchmark interest rate by 100 bps to 28.75 percent on Tuesday November 7th of 2017 following a 150 bps hike on Tuesday October 24th of 2017. It was the second straight move after a 7-month stand. Policymakers underscored that inflation expectations rose since the previous meeting. Annual nationwide inflation climbed to 23.8 percent in September (vs 22.8 percent in August & 21.4 percent in July) and still runs well above the central bank’s target. The BCRA stated it will continue with an anti-inflationary bias until the 10% ± 2% target for 2018 is met. Interest Rate in Argentina averaged 62.39 percent from 1979 until 2017, reaching an all time high of 1389.88 percent in March of 1990 and a record low of 1.20 percent in March of 2004."

If one could convert that loan into USD, invest it elsewhere, then convert back and pay back after a year of 24% inflation, why would you even farm? And how can the government afford an interest free loan which will be payed back with currency worth 24% less (assuming a full year elapses)?

[Klause]

There's a big boom on equipment sales down there...


Farmers enjoy subsidized interest 7-14% on equipment and inputs...

[AlbertaFarmer5]

Interest rates at one third of inflation sounds pretty hard to turn down. It's possible that used machinery could be worth more than it was new with inflation rates like that.

[Oliver88]

Must be riskier to lend $ there going by the terrible interest rates.

Are farm bankruptcy rates high there?

[the big wheel]

Would be interesting to know their other costs fertilizer,chemicals. Labour. Taxes etc.

[AlbertaFarmer5]

Must be riskier to lend $ there going by the terrible interest rates.

Are farm bankruptcy rates high there?

I think the high rates have more to do with inflation expectations. Need 24% just to get your money back a year later sice the currency is worth that much less by then.

[Klause]

I think the high rates have more to do with inflation expectations. Need 24% just to get your money back a year later sice the currency is worth that much less by then.

Yup... Different world. High interest to combat high inflation. As a ratio not much different than here actually.

5.60 for wheat 9 for beans 4.10 for corn cash prices today.

Durum $9 and oats $2.77

CAD conversions.


Land taxes have gone up a lot this year and there's protests about it... Still lower than ours in Humboldt.


Equipment is half the cost of here... The perks of an indigenous market completely isolated from the west's influence for quite a while.


This pic is shared on my Facebook from an Argentinian farmer.


That is durum wheat close to harvest. Next to grain corn.

When the durum comes off they plant back to beans right away.

The ground is always growing a crop year round with harvests multiple times a year spread out.




This is a brand new fert spreader indigenous built...

$230,000 CAD.