ANNOUNCEMENT 03 Nov 2020
The government of Argentina launched a new programme to assist small soybean producers from all the country.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Economía y Ministerio de Agricultura, Ganadería y Pesca. Resolución Conjunta 1/2020. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/340000-344999/343896/norma.htm
Ministry of Agriculture, Livestock and Fishingof Argentina. Ministerio de Agricultura, Ganadería y Pesca de Argentina. Noticias. "Agricultura comienza la implementación de las compensaciones económicas para pequeños y medianos productores de soja" del 03/11/2020. Available at: https://www.magyp.gob.ar/sitio/areas/prensa/index.php?accion=noticia&id_info=201103164547
On 2 November 2020, the Ministry of Economy and the Ministry of Agriculture, Livestock and Fishing of Argentina adopted Joint Resolution 1/2020 creating the "Compensation and Stimulus Programme" (i.e. Programa de Compensación y Estímulo in Spanish) that will count with a total budget of ARS 11.55 billion (USD 146.2 million).
The objective of the scheme is to provide financial grants to small soybean producers that invoiced up to ARS 20 million (approx USD 253,200) during the year 2019 holding a declared area devoted to soybean cultivation of up to 400 hectares. Additionally, only farmers inscribed in the Simplified Agricultural Information System can apply to the scheme.
Under the program, beneficiaries will be granted a cash payment. The granted amount will be calculated based on the number of tonnes of soybean sold times the amounts corresponding to how many cultivation hectares they own. In this sense, the support per hectare ranges between ARS 441 and ARS 2,205 depending on the size of the plantation and the region the farm is located.
Notably, despite the differentiation of the amount granted based on the location, the scheme is open to producers from all regions of the country.
The "Compensation and Stimulus Programme" was part of the set of measures announced by the Argentine government on 1 October 2020, when it announced a new set of measure to boost production and exports (see related state act).
Joint Resolution 1/2020 entered into force on 4 November 2020.