The forest incentive policy in Argentina. Case-study: Santiago del Estero

Abstract

The development of planted forests in Argentina was brought about by a range of State-maintained incentive programmes throughout the 1990s. These initiatives sought to relieve pressure on native forests and reduce dependence on imported wood by subsidising actually attained plantations of fast-growing species. In many regions of the country, the policy generated real and effective responses. There are today over a million hectares of forest under cultivation. The benefits of forest incentives went to waste in the province of Santiago del Estero, however, despite its having a large surface apt for forestry uses in both irrigable and dry areas. There appears to be insufficient information and, therefore, scant producer response to the incentives. Also in evidence is a need to update the value of the subsidy in the light of the realities faced by producers in the province. This paper pursues two aims: (a) to analyse the social and economic consequences of the forest incentive policy at the national level, and (b) to evaluate the response of producers in Santiago del Estero to those incentives.