According to the latest edition of the Ag Barometer Austral, prepared by the Agribusiness and Food Center of Universidad Austral, rural producers' confidence in the Javier Milei government has reached its highest level since 2019.
The overall index stood at 159 points, which represents a 28% jump compared with the previous measurement.
The survey is conducted among 400 agricultural producers with a gross production value equal to or greater than U$S 200,000.
This figure represents the historical maximum of the series, managing to break through the barrier of 158 points that had been recorded in July 2019, weeks before the shock that the unfavorable PASO primary result for Mauricio Macri's reelection aspirations caused in the markets.
The current rebound is supported by a substantial improvement in present conditions (+43%) and in future expectations (+23%).
Improvement in present conditions for the agricultural sector
"We are facing a very significant change in producers' mood. The improvement in present conditions is especially meaningful because it indicates that optimism is no longer supported only by the future, but also by the perception of the present", stated Ag Barometer Austral director Carlos Steiger.
The report reveals that the "appetite" for growth has returned to producers' decisions.
The Investment Expectations Index for fixed assets experienced a 53% increase, reaching 111 points.
This is the second-best historical mark, only surpassed by the records from early 2022. Today, 55% of respondents state that it is a good time to sink capital into the business.
Investments in the agricultural sector
- Land purchases: 29%
- Tractors: 27%
- Breeding cattle: 20%
- Fattening cattle: 19%
However, there are 38% of producers who view the context favorably but prefer to wait.
The obstacle is not a lack of confidence in the model, but the cost of money.
