Argentine Farmers Call for Immediate Removal of Wheat Export Tax Amid Economic Strain

In a appeal to the Argentine government, agricultural producers are urgently demanding the elimination of a 12% export tax on wheat, which they argue barely covers production costs for the 2024/25 growing season. According to the Buenos Aires Cereal Exchange, the projected planting area for wheat is set to decline below the five-year average due to low profitability, highlighting significant concerns among farmers.

The sowing of wheat, scheduled to start in late May, is expected to cover around 5.9 million hectares, a reduction attributed to the discouraging economic environment fostered by current fiscal policies. “We urge the authorities to urgently review these policies and work towards measures that foster a conducive environment for the development of wheat production, beginning with the abolition of export duties,” stated the Rural Confederations of Argentina (CRA) in a press release.

CRA, one of Argentina’s four major agricultural associations, emphasizes that agricultural exports are a crucial source of foreign currency for the nation, making the agricultural sector a key political and economic player. President Javier Milei, who took office in early December, had campaigned on promises to deregulate agricultural trade.

However, contrary to expectations, Milei not only retained the grain export taxes but also proposed a bill shortly after taking office that would increase the wheat export tax to 15%. This proposal was met with strong opposition and was ultimately rejected by the Lower House of Congress in February following significant backlash from the agricultural community.