Recently appointed President Javier Milei has passed a “mega decree” that includes the repealing the land foreign ownership rules

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The Government will remove the rule that in 2011 limited the sale of fields to foreigners. This law is amongst the 200 pages of other modified or removed to fire up Argentina’s economy and remove the damage that 70 years of Peronism have done to one of the world’s most important economies.

These points, among others, are contained in the megadecree of necessity and urgency that the Government will announce. This Wednesday, according to reports, President Javier Milei will present the general outlines of the initiative that will have economic deregulations, reduction of state expenses, and changes in legislative work, for example.

As this media learned, the decree of necessity and urgency will advance on mostly outdated laws in agriculture. There are issues related to viticulture, cotton, the National Institute of Yerba Mate (INYM) reform, and land law.

Regarding this last aspect, in 2011, with Kirchnerism in power, Law 26,737, Protection of the National Domain over the Property, Possession or Tenure of Land, was passed. He limited the amount of land a foreigner could acquire to 1,000 hectares in the core zone, and then the different provinces drew up their own equivalences.

At that time, the excuse for passing the law was that the country had a significant territory in foreign hands. It was stated that they could not have more than 15% of the country’s rural lands. However, later, the data reflected something else: that the “foreigned” surface was, with 16,253,279 hectares, 6.09%. That is, over a total rural area of ​​266,707,361 hectares. By 2020, the level of foreignization had fallen to 5%.

Due to this law, an active rural real estate market began to lose its shine and the values ​​of the farms in the best agricultural areas of Argentina, such as in the north of Buenos Aires, began to detach from the prices of the United States. Amid this law plus the exchange rate, while prices stagnated in the US, they continued to rise and even more than double.

It is worth remembering that in 2016, the government of Mauricio Macri made the land law more flexible with a regulatory decree, although maintaining the requirement of a limit of 1,000 hectares for a foreigner who wanted to buy in the country. Acquired rights were recognized so that a foreigner who already had fields could sell and buy back without the limits of 1000 hectares.

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Comments from our readers

  • For David Miazzo, chief economist of the Agricultural Foundation for the Development of Argentina (FADA), although we have to wait to see how the path continues of the megadecree, as the first general reading “any measure that eliminates obstacles, discretions, restrictions, interventions, costs, bureaucracies is very positive.”

    “Very positive, but waiting to see what’s next. And, in a second, more specific reading, it is also very positive that it is requested that any intervention or restrictions on exports have to come out by law. This For decades, it has been one of the main sources of unpredictability for agricultural production and exports, especially for products such as meat, wheat and corn, that exports could be intervened, restricted, prohibited from generating quotas, from a second or third line of the Secretariat or the Ministry of Agriculture with a simple resolution. That cannot and should not be like that,”

  • SANTIAGO J says:

    Por empezar es un error eso de “70 años de peronismo” no entienden nada. Tomando 70 años a hoy, o sea año 1953, Peron gobernó hasta el 55, cuando fue depuesto por un golpe militar, luego estuvo 18 años proscripto, hasta volver en 1973, cuyo gobierno duró hasta 1976, nuevo golpe militar hasta 1983 que asumió Alfonsin (radical) por seis años. Luego estuvo Menem por diez (peronista), De La Rua por 3 años (radical), luego Duhalde, Nestor Kirchner y Cristina Kirchner (12 años aprox), y luego Macri (juntos por el cambio) 4 años y finalmente Alberto 4 años (peronista)
    cuales serian los 70 años de peronismo entonces? lean algun libro de historia al menos!

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