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Agricultural Policies in Argentina

image of Agricultural Policies in Argentina

The Food and Agriculture Reviews provide a comprehensive assessment of agricultural policies and calculate a set of policy indicators developed by the OECD. These indicators are regularly used in the analysis of the agriculture and food sector in OECD countries and several emerging economies. This review analyses both the indicators available for Argentina and the main agricultural policy areas, such as trade, innovation, sustainability, risk management and value chains. It also provides a series of policy recommendations.

Argentina’s agricultural sector has undergone a considerable innovation process over the last two decades. This transformation was mostly led by a dynamic and pro-active private sector often subject to policies providing negative support via export restrictions and taxes. The rapid adoption of technologies, such as improved varieties and no-till farming, and organisational innovations have contributed to increasing the Total Factor Productivity of crops. Government focus on providing such general services as research, extension, and animal and plant health has facilitated innovation as has the proactive management of risks by farmers. Nevertheless, environmental pressures are increasing with deforestation and the use of pesticides.

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Managing agricultural risks in a volatile environment

Argentina has few policies oriented to risk management, mainly consisting of support derived from the Agricultural Emergencies Law and the plant and animal health services provided by SENASA. Several provinces have recently provided varying degrees of support to insurance. Disaster risk management policies are focused on ex-post assistance and could gain from refocusing on ex-ante prevention and preparedness. The significant policy and macroeconomic risk in Argentina and the underdevelopment of the financial sector creates a difficult environment for agricultural risk management. However, the focus of government policies on catastrophic risk has facilitated a remarkable development of technological innovations and market and contract strategies that have contributed to the resilience of the sector.

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