Home World Argentina’s farm growth masks inequality, decline of smallholders: Study

Argentina’s farm growth masks inequality, decline of smallholders: Study

by Vishal Kumar
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Buenos Aires, Mar 31: Argentina’s agricultural sector has witnessed substantial growth in output and exports over the past few decades, but the benefits have been unevenly distributed, with small farmers increasingly disappearing and land ownership becoming more concentrated, a recent study has found.

According to the research, the country has strengthened its presence in global agricultural value chains, driven by rising productivity and technological advancements.

However, these gains have largely favoured large agribusiness firms, while smaller producers continue to face mounting challenges to sustain their operations.

The study notes that the adoption of advanced technologies, including biotechnology and precision farming, has improved efficiency across the sector.

At the same time, these developments have raised entry barriers, making it harder for independent and small-scale farmers to compete.

Institutions such as the National Agricultural Technology Institute (INTA) have extended technical support and assistance programmes to farmers.

Despite these efforts, researchers say structural disadvantages faced by smallholders remain largely unaddressed.

“While technological progress has boosted productivity, it has also increased the importance of scale, putting smaller farmers at a disadvantage,” a researcher associated with the study said.

Data cited in the report indicate that agricultural production has expanded significantly over time.

However, nearly two-thirds of small farms have disappeared during the same period, while a small fraction of producers now control a substantial share of farmland.

The study also raises concerns over labour conditions in the sector, noting that agricultural workers remain among the lowest paid despite continued expansion in output.

Analysts say existing policy measures, including cooperatives and technical assistance initiatives, have had limited success in reducing disparities, as they operate within the same economic framework that encourages consolidation.

The report calls for structural reforms aimed at promoting more equitable growth.

Suggested measures include strengthening cooperative ownership models, linking financial support to implementation outcomes, improving labour rights, and enhancing collective bargaining mechanisms.

It further recommends aligning technical assistance with broader interventions such as land reforms to ensure a fairer distribution of benefits.

The findings highlight that while Argentina’s agricultural transformation has delivered strong production gains, it also raises important concerns about inclusivity and long-term sustainability, with experts stressing the need for policies that ensure a more balanced distribution of wealth across the sector.

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