Argentine farmers favoring safe-bet soy over corn as policy outlook darkens

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Argentine farmers favoring safe-bet soy over corn as policy outlook darkens
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Argentine farmers, anxious about an increasingly murky political outlook and eco...

BUENOS AIRES - Argentine farmers, anxious about an increasingly murky political outlook and economic turmoil, are turning toward soy over more expensive corn to cut costs, a shift that could impact next season’s harvest in one of the world’s top grain exporters.

Corn costs around $500 a hectare to produce, around 70% more than soy, local consultants say, because it requires more investment in fertilizers and new seeds each season. Fernandez de Kirchner is highly unpopular with the country’s farmers after bringing in export curbs and taxes on overseas farm sales during her 2007-2015 presidency. The general election is on Oct. 27.

In response, the government has imposed currency controls to stem a decline in the currency and protect dwindling foreign reserves, evoking memories of more interventionist policies under Fernandez de Kirchner.

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