Santa Fe Farmers Seek to Extend Loan Repayment Periods

Farmers in the Santa Fe region are facing increasing financial difficulties and are calling for the extension of loan repayment periods to prevent the liquidation of their cattle assets. The proposal suggests that loans initially set to be repaid within a year should be rescheduled for three to five years, depending on individual repayment capabilities.

The financial challenges stem from a mix of factors, including the seasonal drop in milk production during autumn and winter, rising feed costs, and stagnant milk prices over the past year. Additionally, the macroeconomic environment has altered the financial dynamics of farms, with slowing inflation and lack of long-term refinancing options increasing financial obligations.

One suggested solution involves dairy industries acting as retention agents for loan installments, providing banks with an additional guarantee for repayment, which could facilitate refinancing agreements.

The Ministry of Productive Development is developing new financial tools with more competitive rates, though they have not yet considered extended timeframes. Before negotiating with banks, there is a need to ascertain the number of farmers requiring refinancing and the total debt involved.

Carsfe, the association representing local farmers, is conducting a survey among its members and non-members to gather data on current debt levels. Producers are required to provide their tax identification, financial institution details, and current loan amounts. The survey aims to support a collective proposal to the provincial government and aid in negotiations with banks to ease financial burdens and prevent further decapitalization of dairy farms.