Argentina Cuts Taxes on Major Crops to Aid Farmers Amid Drought and Low Prices
Argentina has significantly reduced taxes on its major export crops, including soybeans, corn, and wheat, to support farmers struggling with drought and low global prices.
The government has slashed tariffs on soy meal and oil exports from 31% to 24.5%, unprocessed beans from 33% to 26%, and corn from 12% to 9.5%. Similar cuts were implemented for other crops such as wheat, barley, and sunflowers.
These tax cuts coincide with ongoing negotiations between Argentina's policymakers and the International Monetary Fund (IMF) in Buenos Aires. A key aspect of these discussions involves reforming Argentina's currency policy, which strongly relies on export revenue from agricultural crops.
Politically, President Javier Milei has fulfilled his promise to lower taxes, albeit temporarily until June. The cuts come at an opportune time, aligning with the second-quarter harvest, and aim to enhance Argentina's competitiveness in global markets.