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Bahillo promises climate insurance for the countryside – Without defined Section

Like all his predecessors in office, whether they were from “Cambiemos” or the “Frente de Todos”, Bahillo also promised to work on climate risk insurance and considered it a priority for the organization he heads to provide “predictable and clear rules of the game” to agricultural activities.

-In what state of situation is the sector and what lines of management is the Secretariat going to undertake?
-I believe that the first thing that the primary sector must have so that it can express its full productive potential are predictable and clear rules of the game. The sector has a series of demands that we are trying to satisfy. We can even agree on the substance of the issue that must be resolved over time, but it seems to me that what the sector demands most is predictability, that there be measures that improve the situation of the sector’s projection and not measures that, between what a producer who makes the decision to plant corn with a certain level of tax pressure or certain rules of the game, are modified between planting and harvest to the detriment of the producer.

That is the first basic rule that we want to enforce; The sector also needs the development of policies that allow it to serve not only the internal market, but also the external one. Also a look at the value chain, in which, we understand, each link must have economic sustainability.

If the market corrects and makes the chain sustainable, that is welcome, but if the market does not correct and appropriates a sector unduly or exceeds the profitability of sustainability that one of the links must have, we have to be there to correct that situation.

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-What balance do you make of almost two months of management in Agriculture and what are the objectives for the coming months?
-The balance is good to very good. We were able to respond to some questions that are issues that the sectors or entities have been raising, such as cutting biodiesel, a significant improvement in income for soybean producers by liquidating, and we have generated some actions to promote the export of beef .

For the next 60 or 90 days, we have several issues on the agenda: first, to generate an incentive program for small and medium-sized producers, as indicated in article 9 of the Export Increase Program decree, as well as for regional economies.
We are already working on what would be some of the measures. We are in the stage of evaluation, analysis and exchange, and then the Minister (of Economy, Sergio Massa) or the President (Alberto Fernández) will decide definitively what the measure is and when it is taken.

Also, as indicated by Massa, develop insurance that brings peace of mind and predictability to producers. An insurance against climatic events, because today the Emergency Law that we have is insufficient to respond to the problems posed by drought or floods.

In addition, moving forward in the creation of the agro-bio-industrial law and with the Federal Agricultural Council (CAF) we are going to start working on a regulatory framework of good agricultural practices, so that there is legislation that is as harmonized and homogeneous as possible.

-On September 30 the Export Increase Program (PIE) ends?
-Ends.

What will the day after be like? Can a measure be expected?
-No marketing measures. I think that later it will be left to the rules of the market. There is going to be a good stock for milling and to meet the needs of the industrial part, which was going through a certain tightness during August.

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With this volume of merchandise, in October it is possible, in some way, to restrict supply and, given the restriction, the question of the market comes into play. That way, the price would again be between $50,000 and $55,000 per ton, but if necessary it could be a little more.

The peace of mind that we have and that we must closely monitor is that none of the chains and none of the productive sectors lack supplies, and I believe that this is not going to happen.

-With the creation of the “soybean dollar” there were different claims from other agricultural activities asking for an improvement in the exchange rate or a single exchange rate. Do you have any tool in mind to address these claims?
-It is our responsibility to think of permanent measures to improve the competitiveness of each of the regional economies. What we are doing from the Undersecretary of Regional Economies is an economy-by-economy analysis, taking the 15 largest and analyzing together with them and with provincial officials, what would be the measures that would improve competitiveness, which do not necessarily have to happen for an improvement in the exchange rate, because the improvement in the exchange rate had to do with what soybeans are, because they have 33 percent withholdings and because it does not impact local prices.

We are analyzing different measures that have to do with evaluating the compensation that refunds of contributions may have, the export rates that regional economies have, incentives for the development of new markets, permanent financial attention to enter a certain market in accordance with the cyclical issue that you have or biological, or some temporary assistance for working capital so that they can choose a better opportunity to sell.

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-How did they make the decisions of the Central Bank?
I already said what I said and I’m not going to change it. My function is to work to persuade and convince that some decision that I understand, at least for the responsibility that I have, is not the most appropriate and try to convince and persuade those who have another responsibility, such as that of the Central Bank, who understands that the measure is opportune for monetary policies, but I understand that it is not opportune in terms of production.

Source: Télam Agency

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