Rural Association

And not only produces more food but that Brazil has stung in tip in the race for the development of the biofuel production, career in which Argentina is just the line of start. Uruguay is also gaining him the race by the conquest of external to the Argentina market. In Uruguay has been developed a livestock agricultural policy that encourages foreign investment. It is for this reason that one of every three Uruguayan agricultural properties is in the hands of foreigners, according to the Rural Association of Uruguay. Among them there are companies agricultural and PGG Wrightson Ltd., of New Zealand, Adecoagro (backed by George Soros). Agricultural policy generated a strong increase in the value of the land and that’s why many have decided to sell them to foreign investors except Mr Gramont, farmer of 66 years who claimed: I do not sell any of my farms, but I’ve always gone against the current.

This year is expected the sector to grow by more than 4% despite the worst drought in eight years that affected the country. The tax structure for the sector in Uruguay has no great secrets. The country does not apply taxes to agricultural exports, and instead apply a flat tax of 25% on the income of the sector. With its livestock agricultural policy Uruguay has already surpassed Argentina in export volume of beef. Uruguay is beating Argentina increasingly in more subsectors agriculture farmers. Makes a few days ago, Diario Hoy, realized that the Argentine dairy sector account with the same amount of animals that ten years ago, at the time who claimed that: the national Government interventions were key to prevent the dairy development in the country. The newspaper disseminated a report of the Argentina Rural Confederation (CRA), which among other things marked the following about the effects of Government price control with the sector: If you compare the situation of the Argentine producer that produces 3,000 liters with the Uruguayan, lost perceive $95.400.

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