Perspectives on Business and Economics, Vol. 39, 2021 2 Introduction In 2018, Argentina exported over $15 billion in soybean products, more than a quarter of the export earnings for the country as a whole. The soybean industry in Argentina is integral to bolstering the economy, which encourages the Argentine government to prioritize soybean production over social and environmental concerns. The negative consequences of the soaring soybean production include land grabbing, deforestation, and the push of foreign countries and corporations to invest in Argentina. More than half of Argentina’s fertile, crop-growing land, nearly 20 million hectares of land, is now being utilized to produce genetically modified soybeans, making the area one of the largest genetically modified crop regions in the world. As a result of this spread, specifically in the Pampa region, located from the center of Argentina to the northern part of the country, smallholders (peasants and indigenous people who farm small areas of land) have become increasingly dispossessed. These smallholders grow crops for their families and local markets and are unable to afford the costs that are associated with procuring and maintaining genetically modified crops. The Argentine government is reaping the shortterm benefits of the soybean industry without recognizing the current and future costs. The Argentine government has not yet established any effective legislation to protect smallholders from land grabbing, but many nongovernmental organizations (NGOs) have formed over the past few decades to fight for peasant and indigenous rights. Even in cases where legislation exists, it is not effective. For example, while Argentina’s Forest Law was enacted in 2007 to control deforestation, enforcement has not been consistent. Without proper regulation to control land use, deforestation rates will continue to climb, and the larger corporations will continue to drive the smallholders out of business and off their land. As the soybean industry expands, the THE SOCIAL AND ENVIRONMENTAL RAMIFICATIONS OF ARGENTINA’S SOYBEAN INDUSTRY Emma B. Banker Argentina derives significant economic benefits from its booming soybean industry, leading the Argentine government to prioritize support for the industry ahead of social and environmental concerns. Without proper government intervention, negative impacts from soybean industry expansion, including social inequality and deforestation, will be exacerbated and result in unforeseen implications like the rapid approach of climate change. This article explores the most prevalent repercussions and provides possible solutions to mitigate their impacts.
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