By Knowledge of what is happening in other countries is critical for farmers and ranchers in the global economy.
As a part of the South Dakota Ag and Rural Leadership program, five people from the Aberdeen area shared their thoughts about the value of their study trip to Argentina.
Through the experience, they gained perspective about the world, especially since foreign trade is vital to U.S. agriculture. Carson Stange of Stratford, Taylor Sumption of Frederick, and Russell Samson, Kaleb Bowman and Kiera Leddy of Aberdeen were among those who made the trip.
From visits with Argentinian leaders to farm visits, and bus rides to port tours, the group found new ways to view the ag industry.
Samson
“We learned that as producers, whether it’s grain or livestock, they are dealing with many of the same challenges that farmers and ranchers in South Dakota have to contend with,” Samson said. “So much in the ag sector is out of the producers’ control, so they take it upon themselves to think outside the box to make ends meet. They appreciated us being there, and we appreciated them telling us about their operation.”
Sumption said the highlight for him was visiting the farms and meeting the people.
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“I enjoy experiencing agriculture in different parts of the world and visiting Argentina didn’t disappoint. The farmers shared a similar mindset that producers in the U.S. have, just with differing obstacles to overcome,” he said.
The group learned about innovations and challenges facing their counterparts in the southern hemisphere. Acting Ambassador Abigail Dressel at the American Embassy in Buenos Aires told the group the biggest challenges facing farmers in Argentina are high export taxes, poor transportation routes and minimal communication abilities.
One challenge facing Argentina is high inflation, which in recent years has been as high as 200% annually. Top exports from the U.S. to Argentina are distilled spirits, seed stock and essential oils, which are used to flavor foods.
The uncertainty affects farmers as they plan for their future, according to Samson.
“We were told by multiple people involved in agriculture that Argentina has the ability to grow if the country finds some stability. There is significant uncertainty both politically and economically, so farmers and ranchers have a difficult time planning more than a year or two in advance. Because of high taxes, five- or 10-year plans are uncommon for operations,” he said.
Field tours were part of a recent South Dakota Ag and Rural Leadership visit to Argentina. Five local residents were part of the trip. Courtesy photo.
Argentinians are market influencers
This trip provided Stange with a better perspective of world trade, especially learning of the challenges the Argentinians face. That prompted reflection on agricultural hurdles and the need for continuous improvement.
“The sheer volume of soybeans grown there and the implications of a yield change for U.S. soy growers were eye-opening,” he said. “It confirms the need for crop diversity in my operation. They are market influencers, so it makes me think how I can protect my revenue if they have a record crop of corn and soybeans, and it challenges our prices.”
A visit to the Association of Cooperatives Argentina grain shipping facility in Jesus Maria revealed the struggles farmers have to get their products to markets. The facility can hold up to 200,000 metric tons at a time, which can load about four barges. While the industry employs cutting-edge agriculture technology, the infrastructure holds back progress.
Leddy
“The grain is brought in by truck and then leaves on a barge. There’s a pretty big movement to privatize the rail system because the government recognizes they don’t have the money to upgrade it. They don’t have the management to maintain it and operate it correctly,” Leddy said. “That’s going to be a really big push for them in the next five to 10 years. That should help the producer get more return out of their crop because trucking is much more expensive. Many roads were in poor shape.
“I didn’t realize how closely we were related in our grain production – crops, equipment, technology, handling and marketing were all close to what we’re doing here. The challenges were something that connected us,” she said.
Bowman also found the trip informative.
“I understand better today what and why limits their grain and meat production. Their limitations aren’t land, technology or labor, but infrastructure and logistics. If they figure out how to more efficiently transport from the interior of their country to their ports, they could become an even greater player in the world market than they already are today,” he said.
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Argentina’s largest cooperative association’s ethanol plant uses carbon capture to lower carbon scores, Sumption said. Some U.S. producers are resisting that and rely on what is, at least now, superior export infrastructure.
“Our advantage is diminishing around the world,” he said.
He’s concerned American farmers and ranchers will be in trouble if the nation continues to resist the desires of both domestic and foreign trade partners.
Sumption
“For a century we have inflicted our will and pushed our products, relying on being cheaper and more efficient. … Argentina is proof that other countries will adapt to a changing climate to provide a product the buyer desires,” Sumption said.
Stange believes that Argentina’s agriculture sector has untapped potential.
“Just from the little bit we saw, it is apparent there is room for more efficiency. The lack of a railroad system alone leaves a lot on the table. If they get a handle on their infrastructure and export taxes, I think margins could greatly increase for Argentine farmers,” he said.
The U.S. needs to improve, Sumption said.
“There are significant investments taking place in infrastructure to help Argentina increase its export ability. One obstacle for its producers is the government’s export tax on grains. Argentine producers mentioned the use of no-till and carbon scoring frequently, and the newer ship-loading facility we toured could track every truckload to its destination,” he said.
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Visiting with a group of farmers involved in the Argentine Association of Regional Agricultural Experimentation Consortiums, the South Dakota group learned how the nonprofit organization organizes small groups of local farmers. They meet to try to help each other maximize profit by sharing information.
“I think the part that affected my leadership journey the most was seeing how similar their agriculture was in some ways, but how different it was as well. It reminded me that there is more than one way to do things. It was also impactful learning about the ways they work collectively to succeed in a tight margin environment that they have,” Stange said.
The level of collaboration among Argentine producers was inspiring, Sumption said.
“The culture of Argentina‘s growers reminds me of what I’ve learned about U.S. producers in the initial beginnings of our cooperatives and initial growth of the U.S.’s ag economy in the early to mid-1900s,” he said.
Argentinian government wants to change
Leddy said Argentina wants to improve.
“If you’re following along with Argentina politics, they have a new president with a desire for improvement, even reaching out to programs like the John Maxwell leadership program. You rarely see that with a government. They recognize that their country has a problem, and there’s hunger for change,” she said.
Argentinian ag producers take on a surprising amount of risk, Samson said.
“There are no government subsidies, which makes crop insurance unaffordable or nonexistent. From what we were told, some had hail insurance, but the majority of farmers do not carry any kind of crop protection,” he said.
One producer told Samson that ag land prices range from $4,000 to $8,000 per acre.
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In Argentina, a big farm is around 1,000 acres, whereas most of the farms Kiera works with as a lawyer have at least 10,000 acres.
“The government taxes all their crops that are exported out of Argentina, which is almost all of them. There is a lot of focus on world trade and how tariffs will impact the market. There are lots of layers to the onion with no simple solution. Both sides want to protect their market, but they also want to get the top dollar for their product,” she said.
On person said at least 90% of Argentina’s commodities depend on trucking, Leddy said. She’s sure the nation’s ag sector will keep growing.
Five local residents recently visited Argentina to learn more about agriculture in the South American nation. The study trip was part of a South Dakota Ag and Rural Leadership. Courtesy photo.
Slower pace of life
One thing that surprised Carson the most was the slower pace of life.
“Everything seemed slow and steady, but productive…” he said. “When we visited the farms, I noticed their equipment was quite modern, but they had a lot less and smaller equipment than we do. They have much longer growing seasons and can keep that smaller equipment moving for greater lengths of time than we can.”
Argentinian farmers start their days later and end them earlier, Leddy said.
Bowman
“They take time out of their days to socialize with their friends. So it was a good reminder for me that you don’t always have to be going and doing things,” she said.
The relaxed demeanor surprised Bowman.
“I felt like they had excess labor, which showed up in different places, whether at restaurants or farms. There is plenty of labor to meet their needs,” he said.
Andes Mountains and other takeaways from Argentina
“One item that was not on my list of things to see in my lifetime was the Andes Mountains,” Samson said. “We spent a day traveling through them. We talked with farmers through a translator, but if it weren’t for that, you’d think we were in the middle of South Dakota. They have a love for the land like we do here and are doing their best to provide for their families and to set up the next generation for success.”
Samson said the South Dakota Ag and Rural Leadership Argentina visit was filled with unique opportunities and was the trip of a lifetime.
Leddy agrees.
“I would definitely go back. I’d like to maybe wait 10, 15 years just to see the progress that the country is going to go through, to see that growth,” she said.
Stange
“I love where we live and wonder why anybody would ever need to travel farther than Sioux Falls or Rapid City, but after traveling 6,000 miles to the other side of the world, it changed my perspective,” Stange said.
“I think the biggest takeaway was feeling connected,” he said. “We all have the same objectives in life. We all want the timely rains and high-yielding crops so that we can keep tending to the land and providing for our families.”
Seeing the Andes Mountains and Mendoza wine region was especially enjoyable, Stange said.
Graduation for the 30 members of class on March 29 concluded the program. Applications for the next class, which starts in December, are due by May 2. To apply or for more information, visit sdagleadership.com.
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Jennifer Henrie, South Dakota Ag and Rural Leadership program director, said the value of the program’s international travel cannot be overstated.
“We spend so much time learning about our state and country that the international seminar gives us a chance to put our markets in perspective on the global stage. The seminar’s theme was perspective, best achieved by comparing two systems from a distance,” she said.
One common takeaway is that farmers across the world can relate to each other, Henrie said.
Connie Sieh Groop is an experienced journalist and writer who has focused on all aspects of the agriculture industry during her career. She and her husband actively farm, growing corn and soybeans near Frederick.