We Grow Fuel Here: Fighting the Oil Slump by Bartering for Grain
- State oil company taps farm boom as profit from energy drops
- Diesel-for-soy swaps part of $1.4 billion in agriculture sales
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Rather than sell his soybeans for pesos that are worth less by the day because of rampant inflation, Argentine farmer Gustavo Tione figured he’d get a better deal trading the crop for something he can actually use: more fuel to run his tractors.
Last month, he exchanged 30 metric tons of soy for about 8,000 liters of diesel from the state-run oil company, YPF SA. Tione got the fuel at a discount and avoided storage fees and sales taxes. But YPF also benefited. With low crude prices eroding profit, the company is using such deals to expand into a vibrant local farm industry and gain access to dollar-based export markets for grain.