Agricultural policies in Argentina.

Description

Foreword Acronyms Executive summary Note Chapter 1. Assessment and policy recommendations 1.1. A history of successful innovation against the odds Argentina is well-endowed with natural resources but has historically suffered from unstable policies that have hindered its economic performance Despite a difficult policy context, the agricultural sector has grown, driven originally by high commodity prices and then by innovation in oilseeds and grains New technological packages and organisational innovations have been massively adopted The business climate is unfavourable, with distorting export taxes and access to finance is difficult Environmental pressures are on the rise Outside the Pampas region, productivity is low and value chains are poorly developed 1.2. Policy assessment Border measures – mainly in in the form of export restrictions – distort the economy, disadvantage farmers and do not benefit final consumers In the historical context of unstable macroeconomic policies, the lack of a framework agriculture law may have also contributed to sectoral policy uncertainty Budgetary payments to farmers are relatively small Agricultural policies in the General Services Support Estimate: Focus on innovation and animal and plant health The successful adoption of technological packages in the Pampas region was mainly driven by private initiatives Argentina has private insurance, futures and contracts to manage certain risks while ex post government disaster assistance is limited Limited access to financial services like credit is a constraint for the sector and cannot be solved by sectoral policies alone Argentinian agriculture has a dual structure, with high productivity value chains for grain and poorly developed value chains for regional economies The deterioration of statistical information is a burden for both the sector and policy design 1.3. Policy challenges and recommendations The overall policy approach to agriculture needs to rebalance the policy package towards policy stability and sustainability Trade policies in the form of export restrictions have created negative price support, uncertainty and distortions Environmental pressures are growing, calling for strengthening the responsibility of producers in reducing negative externalities The Innovation system needs to modernise its institutions, monitor its results, refocus on environmental sustainability and make the IPR of seeds enforceable Market-based risk management tools exist, policies could also focus on improving preparedness and prevention Facilitating innovation and adjustment in the value chains and regions outside the Pampas References Notes Chapter 2. The context of Argentinian agriculture 2.1. An economy marked by the strength of the agricultural exporting sector 2.2. An upper-middle income country with high urban poverty 2.3. Dynamic grain and oilseed production but other sectors lagging 2.4. A changing export profile and participation in value chains 2.5. The farming sector is dominated by big farms in the Pampas region References Notes Chapter 3. Agricultural policy framework and objectives 3.1. A history of back and forths on trade openness 3.2. Institutional arrangements Decentralised agencies Private institutions 3.3. Overview of the main agricultural policy areas Support to producers General services to the sector Consumer measures Biofuel policy References Notes Chapter 4. Benchmarking agricultural policies: PSE results 4.1. Introduction 4.2. Unlike most other countries Argentina has negative producer support 4.3. Most negative producer support is a reflection of highly distorting export taxes 4.4. Support is provided to first buyers of primary agricultural products 4.5. Argentina provides significant support for general services for agriculture 4.6. Support to the agricultural sector as a whole is still negative References Chapter 5. Export taxes generate distortions and negative support to the sector 5.1. Introduction 5.2. Export tax rates have been high and unpredictable 5.3. Export taxes have been a significant source of revenue for the federal government 5.4. Quantitative restrictions on exports created additional disincentives 5.5. Export restrictions distorted production without controlling food inflation 5.6. Import tariffs have played only a secondary role for agricultural commodities 5.7. Overall policy assessment and recommendations References Notes Chapter 6. Innovation success and the need for modernisation 6.1. Introduction 6.2. Impressive productivity performance, but innovation duality 6.3. The rapid adoption of a new technological package for crops 6.4. The changing role of different actors in the national innovation system 6.5. The National Institute of Agricultural Technology (INTA) 6.6. Public and private investment in innovation Characteristics of the general innovation system Public expenditure on agricultural research 6.7. Knowledge flows: Extension and entrepreneurship 6.8. Intellectual Property Rights and international co-operation 6.9. Overall policy assessment and recommendations References Notes Chapter 7. Sustainability of Argentina’s agricultural transformation 7.1. Potential environmental impacts of the technological package for crops Overall assessment Herbicide tolerant GM varieties No-till practices 7.2. Agri-environmental indicators reveal lower environmental pressures than in the OECD Fertiliser and pesticide use is on the rise Deforestation and biodiversity have been affected 7.3. Potentially mild impacts of climate change on agriculture, but higher frequency of extreme events 7.4. Agri-environmental policies 7.5. Policy assessment and recommendations References Notes Chapter 8. Managing agricultural risks in a volatile environment 8.1. Introduction 8.2. Risk assessment 8.3. Farmers’ strategies and retention of risks at farm level 8.4. Risk transfer and pooling through markets and private arrangements 8.5. Coping with catastrophic risks 8.6. Managing plant and animal health 8.7. Assessment and recommendations References Notes Chapter 9. Value chains in Argentina: Apples and pears, and viticulture 9.1. Introduction 9.2. The apple-and-pear value chain Description of the value chain Production Packing/processing and retailing Exports and competitiveness SWOT analysis and challenges of the value chain 9.3. The viticulture value chain Description of the value chain Production Packing/processing and retailing Exports and competitiveness SWOT analysis and challenges for the value chain 9.4. Policy assessment and recommendations on value chains References Notes Annex A. Main agro-industrial organisations in Argentina Annex B. Argentina’s main agricultural products Annex C. OECD indicators of support to agriculture Annex D. Argentina: Estimates of support to agriculture Annex A. Main agro-industrial organisations in Argentina Annex B. Argentina’s main agricultural products Annex C. OECD indicators of support to agriculture Annex D. Argentina: Estimates of support to agriculture