Forestry in Argentina

An estimated 1.115 million hectares were planted as of 2005. There were also 33.2 million hectares (82 million acres) of native forest reserve. Out of this total, 20 million hectares (50 million acres) are high quality land for future development in Argentina. However, this vast amount is not easy to put into production due to its land tenure situation (the proliferation of owners holding areas of 5 to 10 hectares), legislation which protects native forests, and lack of infrastructure. If investors wish to expand their land for cultivation, the opportunity costs are substantial. ==Production and trade==

Argentina's exports of forestry products began in earnest in the 1990s. However, as a producer of primary goods with low value added, the country experienced an overall trade deficit that ran from US$500 million to US$1 billion from 1992 to 2002. With the sharp devaluation of the peso in 2002, exports of Argentine forest product were given a shot in the arm. Argentine goods became more attractive and exports began to increase, especially for high-value-added products. Between 2002 and 2004, exports increased from US$300 million to about US$700 million. ==Government policy==

Argentina currently does not have restrictions limiting the cultivation of forests in private properties. Only native forests are regulated by the government contingent upon the approval of the cultivation project by local government. Law Number 13,272 This law is intended to conserve the forests, prohibit deforestation, and the irrational use of forestry products. It also specifies that any investment project carried out in natural forests needs to be approved by the Argentine government. Law Number 24,856 This law oversees activities such as implementation of projects, restoration, maintenance, protection, and sustainable management of native forests. It also establishes rules for the commercialization of forestry products and non-forestry products from native forests. Law Number 25,089 This law was implemented in January 1999 and is intended to increase land development by the Argentine forestry industry to 3 million hectares of cultivated forest in 10 years. It also establishes an inventory process for planted forests and has provided for the establishment of agreements with international organizations that focus on development and technology transfer for this industry. This law also provides tax benefits and economic support for Argentine and foreign investors. • Tax benefits: • Tax stability for 30 to 50 years for companies with forestry investment projects • Accelerated amortization of income taxes • Accelerated return of value-added tax (21 percent) • Tax breaks on assets, real estate, sales, and gross income from state and municipal governments • Accelerated depreciation of capital goods • Economic Support • The Argentine government will finance up to 100 percent for projects with 700 hectares, 50 percent for forests between 701 and 1,000 hectares, 30 percent for extensions between 1,001 and 2,000 hectare, and 15 percent for more than 2,001 hectares Support for projects focused in plantation of traditional species and enrichment of native forests ==Forestry by region==

Among the most important regions in Argentina for the industry are the provinces of Misiones, Corrientes, Entre Ríos, and Buenos Aires. These four provinces form the country's eastern border with Uruguay and Brazil, and comprise 80% of the total cultivated area. Forests are composed of the following species: • 50% – Pine (Misiones, Corrientes, Entre Ríos, Patagonia, Central and Northwest areas of the country) • 30% – Eucalyptus (Misiones, Corrientes, Entre Ríos, Buenos Aires, La Pampa, Santa Fe, Central and Northwest area of the country) • 16% – Willow and aspen (Buenos Aires, Río Negro, Mendoza, Neuquén) • 4% – Other broad-leaved trees The Argentine forestry sector has strengthened considerably in the last 15 years. The reasons behind this growth include: • Great extensions of undeveloped land for the forestry industry at low prices that do not compete with other industries such as agriculture • The Law 25,080 which provides economic incentives and favorable investment environment for the industry (including fiscal stability) • No restrictions for foreign investment During the 1990s, Argentina was a net importer of forestry products with high value-added (i.e. paper, cardboard, furniture, etc.) and a net exporter of primary and low value added goods (i.e. wood, cellulose pulp). This situation has changed especially after the currency devaluation in 2002 and foreign investment during the 1990s. Now, the country has begun producing a number of high value added products such as fiberboards and finished products such as furniture. Argentina is now in a position to become an important producer of forest products in the future. The industry is focusing on the production of more high value added products, and increasing rates of plantation. == Tree cover extent and loss ==

Global Forest Watch publishes annual estimates of tree cover loss and 2000 tree cover extent derived from time-series analysis of Landsat satellite imagery in the Global Forest Change dataset. In this framework, tree cover refers to vegetation taller than 5 m (including natural forests and tree plantations), and tree cover loss is defined as the complete removal of tree cover canopy for a given year, regardless of cause. For Argentina, country statistics report cumulative tree cover loss of from 2001 to 2024 (about 17.8% of its 2000 tree cover area). For tree cover density greater than 30%, country statistics report a 2000 tree cover extent of . The charts and table below display this data. In simple terms, the annual loss number is the area where tree cover disappeared in that year, and the extent number shows what remains of the 2000 tree cover baseline after subtracting cumulative loss. Forest regrowth is not included in the dataset. ==REDD+ forest reference emission level and monitoring==

Argentina has submitted a subnational forest reference emission level (FREL) under the UNFCCC REDD+ framework, which was assessed through a UNFCCC technical assessment in 2019. On the UNFCCC REDD+ Web Platform, Argentina is listed as having reported a national strategy, a safeguards information summary and a national forest monitoring system, and as having an assessed reference level. In its 2019 submission (as modified during the technical assessment), Argentina constructed a FREL covering the REDD+ activity “reducing emissions from deforestation” for four forest regions (Parque Chaqueño, Selva Misionera, Selva Tucumano Boliviana (Yungas) and parts of Espinal) as an interim step toward a future national FREL. The assessed benchmark is an average of historical gross emissions for the 2002–2013 reference period and corresponds to 101,141,848 t CO2 eq per year, without an adjustment for national circumstances. Argentina’s results reported for 2014–2018 on the REDD+ Web Platform are associated with the same assessed reference level and relate to reducing emissions from deforestation in these four regions. The technical assessment reports that activity data were derived from Argentina’s National Native Forest Monitoring System and associated deforestation mapping, distinguishing “forest land” (TF) and “other forest land” (OTF) classes within native forests, and that emission factors for above- and below-ground biomass were largely based on the First National Native Forest Inventory (PINBN). The FREL included CO2 only and excluded deadwood, litter and soil organic carbon (in mineral and organic soils), with the assessment team identifying the treatment of these pools and non-CO2 gases (e.g., from burning) as areas for stepwise improvement; the overall uncertainty of the FREL estimate was reported as about 2%. ==Other issues==

There are both negative and positive factors that currently affect the forestry industry in Argentina that need to be considered by investors. Argentina still has low land prices relative to other countries involved in forestry (e.g., Chile and Brazil). It is estimated that the cost of land varies between . Also, Misiones and Corrientes have estimated cultivation costs of US$800 to US$1,000 and US$400 to US$500 per hectare respectively. The soil, especially in the area of Misiones and Corrientes, is specially suited for forestry, and has one of the highest growth rates for forestry in the world. Another issue is the lack of interest of the SAGPyA (Secretaria de Agricultura, Ganaderia, Pesca y Alimentacion) to promote the forestry industry. Even though there is a law implemented for the promotion of the forestry sector, it is not a priority for the government. In many cases, economic support for cultivation projects has been delayed. For instance, it is not clear if Law 25,008 will be extended in the year 2009 or if it will be modified. In 2006, the Argentine Forestry Association-Mesopotamia (Afome) complained to the Ministry of Economy about how SAGPyA has managed the Law 25,008. Afome blames SAGPyA for not reaching cultivation goals established in 1999 due to delayed promotional payments. == See also ==