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The Argentine congress has begun debating solutions to the ongoing agricultural crisis. The leading idea –- to subsidize small farmers in compensation for high export taxes –- would be a politically expedient but economically disastrous solution.

Argentina’s congress began to debate June 30 an export tax that has thrown the country into repeated chaos since it was enacted in March. July 1 press reports indicate that congressional leaders are pushing for a set of subsidies to small farmers in an attempt to offset the damaging impact of the export taxes on agricultural goods — the export taxes have led to crippling national strikes. The farmers have accused the government of using the proposal to split the farmers camp, but the greater danger is that such a policy will further damage an already-stuttering economy.

Politically, splitting the farmers by offering handouts to poor, small-scale farmers while taxing large, richer farmers would be an astute move by the Argentine government. If the government can rupture the political cohesion of the farmers’ organizations, it may be able to prevent wide-scale strikes and demonstrations. However, any political peace would only mask deeper economic damage.