Argentina is seeking to adapt its decades-old rules on patented seed technology to the modern era, a move that would allow them to compete with their powerful rivals in agriculture, Brazil and the United States.
As part of President Javier Milei’s extensive reforms to liberalize the economy, seed companies including Syngenta Group Co Ltd, Corteva Inc, and Bayer AG may be able to charge royalties to farmers. This would attract investments to Argentina and provide the nation with access to the latest genetically modified seeds.
An outdated law from the 1970s protects farmers from having to pay annual fees to seed companies. This has caused them to fall behind while neighboring Brazil has been producing record crops year after year. According to analysts at the Rosario Stock Exchange, without the newest varieties, Argentine soybean yields are approximately 17 percent lower than those of Brazil and the United States.
Pablo Vaquero, a cotton seed distributor, stated that changing the rules would be a significant move. “For years, we have been falling behind Brazil and the United States, and now they surpass us effortlessly,” he added.
Argentina typically is the largest exporter of soybean flour and oil, the third largest exporter of corn, and a major global supplier of wheat. However, its agricultural industry has experienced a steady decline due to high taxes imposed by the government and interference in exports. The majority of farmers voted for the libertarian candidate Milei in an attempt to reverse the situation.
The president’s package includes Argentina joining the latest global agreement since 1991, which provides more comprehensive protection for the intellectual property rights of seed creators. It is expected to face resistance in Congress, where Milei’s party is in the minority.
While the current state of affairs might seem like it saves money for farmers, it has actually placed the crop belt of the Pampa in a kind of “time machine” where they plant outdated varieties that yield less than their foreign competitors.
During a conference on soybeans in September, Juan Jose Blanchard, Latin America’s head at Louis Dreyfus Co, emphasized how seed technology issues have contributed to the decline of the crop industry.
“Do you know how many serious programs currently exist in Argentina to improve the genetics of soybeans?” said Blanchard, an Argentine. “One, two, at most three. In Brazil, there are a minimum of 30. Therefore, if we stay as we are, the gap between Argentina and Brazil in agricultural productivity will widen more and more.”
If the package is approved, the implementation of seed rules would be at the discretion of local legislators and policy makers, said Rodolfo Rossi, a former seed scientist who leads the soybean association Acsoja.
Previous governments attempted unsuccessful efforts to charge farmers for the harvested seeds in one season that were used for planting in the next season.
For a few years starting in 2016, Argentina even allowed Monsanto Co, later acquired by Bayer, to test shipments of soybeans for their Intacta technology and attempt to collect royalties. In 2021, Bayer exited the soybean seed business in Argentina, citing changes in global strategy and a shift of investments in the country towards “profitable” projects.
