Argentina Agricultural Prices

Approve the reform sent to the Congress, small and medium farmers will not withstand this tax increase and disappear phagocytosed by seeding pools, which are those who would benefit by this conflict. This play of constriction to the Argentina rural production is very serious, especially in this international time which we live: increases disproportionately in food prices when the world cries out for greater agricultural production that will lower prices and stabilize them. New threats to the prices of commodities in addition to local conflict: closures of exports in several countries to prevent the spread of domestic prices; something absolutely improper since they only manage to distort relative prices and increasing them: the producer who sees that the price of their product has a regulated price, will tilt to stop producing it and pass to another that does not have it, generating shortages and unavoidable increase in the price. On the other hand, natural disasters: heavy rains that have caused flooding in areas of strong agricultural production in the United States, such as the States of Iowa and Illinois, will come back to this later. And all this generating higher expectations of price increases, impacting on speculators in commodity markets, which inflate a bubble that already had been dangerously brewing, this being today the sector chosen by investors after firing of mortgage markets, construction and real estate in the United States. We predeciamos in Argentina and the policy of the photoshop in August 2007, that today is happening in the country: from the 1970s occurring in Argentina crisis every 6-7 years. Being that the last one was in 2001; We would be coming to another if it comes to follow the story. Even though the macroeconomic conditions are stronger in the past, these conditions are losing solidity month to month; It is hoped a quick twist of rudder or before the end of 2008 the consequences can be serious. .

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