The government officially announced this Friday a reduction in export tariffs for the agricultural sector, which will reach the lowest level since 2006. According to Decree 877, which has already come into force, soybeans are taxed at 24%; wheat and barley, 7.5%; corn, 8.5%; and sunflower, 4.5%. The measure was received positively by producers and industry leaders They emphasized the political direction and the fulfillment of promisesalthough they agreed that the economic impact will be limited in the current campaign.
In the main agricultural areas, coarse sowing is practically defined. This was highlighted by Santa Fe producer Carlos Grosso, who pointed out that the decline “There will be no change to the planting plan as everything has already been decided“Grosso estimated that the price improvement the reduction can produce is of the order of 3%, an insufficient impact to change immediate planning. But he stressed the political value of the measure: “The most important thing is the signal.” When what was promised begins to come true, the producer bets on the future: machines, infrastructure, storage. “This mobilizes the entire chain.”
For his part, the producer Martín Pasman, present in several provinces, agreed that the decline coincides with the campaign already defined. “Ten days after planting is completed, there is no room to change anything,” he explained. But like Grosso, he appreciated the government’s direction: “It doesn’t move the needle in the very short term, but it does.” is a great incentive for next year. It gives you desire and optimism.”
Gilberto Galli also welcomes the reduction in withholding tax, but warns that VAT is the main problem for his company. Galli explained that after years of investing, he had accumulated a tax credit of nearly $200,000 that the state was not paying back. “Since VAT is not neutral and is withheld from the sale, it represents a real cost factor. For us.” It would be more important that VAT works properly than reducing withholding tax“, he claimed. For this reason, he assured that the measure will not change his investment decisions or the production strategy, which today is more focused on livestock farming.
However, the cut was also celebrated by Ignacio Rodríguez Rivas, a producer in Buenos Aires and Córdoba, who insisted that “it is always useful to reduce withholding taxes.” required higher speed due to low current margins. For him, the relevance lies in the fact that for the first time “a non-impulsive decision is made that shows a path.” The manufacturer forecasts domestic prices for the future They should benefit from the improvement, which equates to about $8 per ton for soybeans and $2 for corn and wheat.
In southeast Buenos Aires, Fernando Zani became more drastic: “The loss is the beginning of something, but today it doesn’t add up.” In his opinion, the structural problem is different: “What is important is to decouple the dollar and reduce the tax burden. Given the current points of indifference, sowing is only profitable if it adds value.”
In the same region, Hernán Lanusse said the decline came too late: “We finished sowing 10 or 20 days ago.” However, he recognized concrete effects for those who rented fields: the price improvement would reduce the amount of grain needed to pay the rent.
Finally, Marcos Nazar from Bolívar defined the withdrawal as a movement that helps the company but does not change it. “Two points don’t move the ammeter in terms of profitability,” he assessed. Nevertheless, he emphasized the value of the message: “It is a change of course, what was promised will be fulfilled.” And It is true that there are no fixed dates, as this avoids speculation and distortion“.
The opinions show a common diagnosis: the reduction in withholding tax does not change the 2024/25 campaign, already defined and affected by low international prices. However, the symbolic, financial and strategic impact appears relevant for future decisions.
As Grosso summarized, in a complex global context, the course chosen by the government can stimulate investments that support a key activity for the Argentine economy. The challenge highlighted by manufacturers is clear: maintain the chosen path and accompany it with the correction of other distortions that continue to affect the competitiveness of the sector.
About The Author
