The vision of rural Argentina is intersected by many myths, from “it does not generate added value”, or “cows are mainly responsible for climate change”, or “deductions serve to control prices and generate exceptional income”. The book More areas, less mythology. Concepts to understand its role in Argentina It seeks to bring the countryside closer to the city, understand how it works and highlight its enormous contribution to the economy and society. It is published in digital form by the Inter-American Institute for Cooperation on Agriculture (IICA) and is available for download at this link: https://repositorio.iica.int/bitstreams/47ca9b49-88b6-42b9-a172-87a7c5c292b0/download
Contrary to the idea of it “The countryside does not generate job opportunities or added value.” It generates 4.2 million jobs (22.4% of private sector employment), contributes 15.7% of GDP considering production chains, and exports six out of every ten dollars. The Argentine countryside has undergone a technological transformation since the 1990s: the rapid adoption of direct farming, genetically modified crops and precision agriculture has made it more diverse. outdoor green industry, Far from just an “essential” activity. Technology and productive reorganization in networks of contractors and suppliers allowed grain production to double between 2000 and 2019.
One major myth is that livestock farming is mainly responsible for climate change. However, most carbon dioxide emissions2 (90% worldwide) comes from the use of fossil fuels. Livestock in Argentina rely mainly on extensive pastoral systems. The methane emitted by cows comes from carbon captured by plants through photosynthesis, meaning cattle are recycling carbon already in the atmosphere. This field fixes carbon through photosynthesis and provides environmental services.
There also remains Misinformation about genetically modified crops and the use of glyphosate. The herbicide becomes ineffective upon contact with soil and has no residual effect. The European Union approves its use and insists that “there is no scientific or legal justification for the ban.” In the United States, Environmental Protection Agency (EPA) It has determined that there are no risks to human health when glyphosate is used as directed. The adoption of direct seeding and GMOs has allowed for less use of agrochemicals and fossil fuels and higher carbon sequestration in the soil.
Another common myth is that farming brings extraordinary income.. At the global level, the sector faces global price fluctuations and climate risks. In Argentina, tax pressures are higher than in the rest of the economy, mainly due to export duties. While the agricultural sector is subsidized in other countries, Argentina has the “most negative subsidy” in the world (-27.5% of agricultural income in 2021). Export duties constitute distorting taxes that affect the profitability of the product and discourage investments. It is almost non-existent in other countries and has limited growth in Argentine exports. They have been maintained for about 25 years, even in drought-affected campaigns and in times of low international prices. The idea of lowering prices in order to “attend to Argentina’s table” led to the imposition of export bans and duties, which ultimately reduced supply and had the opposite effect.
While Brazil has doubled its soybean production in the past decade, Argentina has stagnated due to financial pressures and the exchange rate gap. The cancellation of reservation will have immediate positive effects on production, employment, exports and investment. Policies that extract resources from the sector generate a disincentive for production and export, leading to a defensive, survival-oriented logic. In short, the pressures on agricultural activity limited its growth potential and contribution to exports and slowed the country’s development.
The Argentine countryside contributes to job creation, foreign exchange, regional development, and climate change mitigation. It requires macroeconomic stability, reduced financial pressures, and clear rules and policies that promote investment and production. Many myths have been translated into outdated public policies that don’t work anywhere in the world. Debunking myths and understanding the real importance of this field is the key to understanding that it is a strategic and modern sector and one of the engines of economic development in the new international context. Politics must stop paving the way for it to unleash its full potential.
——–
The author is an economist and international consultant at IICA and the Islamic Development Bank.