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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.

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