Argentina launches credit tool for agricultural input purchases

Date:10-21-2024

The Argentine government has launched a new credit instrument to help farmers purchase agricultural inputs and machinery. 

This initiative supports production costs by enabling payments through soybeans or other agricultural products.

The Ministry of Economy has named this agricultural credit tool "Pagaré Valor Producto" (Product Value Promissory Note), a type of promissory note linked to the Rosario Stock Exchange (BCR). 

"This tool will allow agricultural producers to obtain term credit, purchase inputs or machinery by issuing promissory notes expressed in the value of soybeans or other products," said Production Coordination Secretary Juan Pazo during an event at the BCR building.

According to Pazo, work with the National Securities Commission (CNV) is underway to enable trading of these promissory notes within the Argentine Securities Market (MAV). Ministry of Economy representatives explained, "We are receiving and listening to all concerns about input costs across all sectors. "

Government technical experts pointed out that beyond its credit function, the "Pagaré Valor Producto" would also eliminate concerns about commodity prices that producers must address at maturity. They noted that the tool can accommodate payment terms of up to three years.

Juan Pazo maintained that the government's objective is to stay close to regional economies, understand their challenges, and work together to provide concrete solutions. The launch event was attended by BCR chief Miguel Simioni, Industry and Commerce Secretary Pablo Lavigne, and Secretary of SMEs, Entrepreneurs, and Knowledge Economy Marcos Ayerra, among other officials.

The Argentine government used the occasion to detail the economic measures implemented and their impacts. Private sector representatives in attendance presented their demands for improving productivity and competitiveness.

"The recent fiscal measures we are implementing seek not only to stabilize the economy but also to offer a horizon of predictability so the productive sector can plan with greater certainty," stated Federico Furiase, advisor to the Ministry of Economy.

Simioni said these dialogue spaces will "continue to consolidate, as they allow for genuine exchange about the needs of our regional economies."

(Editing by Leonardo Gottems, reporter for AgroPages)