Argentina. Agricultural Investment Trends: Who Holds the Purchasing Power?
Source: dairynews.today
Farmers, dairy producers, and ranchers face different realities when investing in capital goods. The role of financing in their decisions is crucial.
At the Expoagro, held from March 11 to 14, farmers moved to acquire capital goods amid fluctuating weather and economic conditions.
The recent rains have benefited soybean and corn crops, setting optimistic expectations for the harvest.
Nevertheless, the power of purchase has declined for many farmers, requiring more soybeans to buy the same goods compared to last year—up to 20% more for a John Deere S550 harvester, for example.
Financial options offered competitive rates, with pesos interest starting at 15% and dollar loans at 4%. In contrast, the livestock industry shows resilience, with beef prices strong and demand high.
Cattle ranchers have seen improvements in purchasing power for capital goods, needing significantly fewer kilograms of beef compared to the previous year.
The dairy sector also strengthened, owing to higher milk prices and manageable cost increases.
Credit availability and evolving economic landscapes continue to influence purchasing decisions across Argentina's agroindustry.
The recent rains have benefited soybean and corn crops, setting optimistic expectations for the harvest.
Nevertheless, the power of purchase has declined for many farmers, requiring more soybeans to buy the same goods compared to last year—up to 20% more for a John Deere S550 harvester, for example.
Financial options offered competitive rates, with pesos interest starting at 15% and dollar loans at 4%. In contrast, the livestock industry shows resilience, with beef prices strong and demand high.
Cattle ranchers have seen improvements in purchasing power for capital goods, needing significantly fewer kilograms of beef compared to the previous year.
The dairy sector also strengthened, owing to higher milk prices and manageable cost increases.
Credit availability and evolving economic landscapes continue to influence purchasing decisions across Argentina's agroindustry.
