Argentina's farmers back Milei's path but demand faster tax cuts, legislative action

Argentina's main rural organizations have voiced their support for President Javier Milei's economic direction, particularly his commitment to reducing export taxes. However, they are pressing for an accelerated timeline and a legislative guarantee for these tax cuts.

During the opening of the Rural Exhibition in Palermo, Milei reiterated his administration's path toward lowering retentions, linking future reductions to fiscal balance and growth in the energy and mining sectors. He stressed that tax cuts are contingent on a sustained fiscal surplus and promised to ease the burden on producers "as soon as possible."

Despite Milei's assurances, leaders from the Argentine Rural Society (SRA), the Argentine Agrarian Federation (FAA), and Confederations of Rural Argentina (CRA) expressed a need for quicker action. Nicolás Pino, president of the SRA, formally requested that the elimination of export duties be enshrined in law, moving it beyond the executive branch's discretionary power.

Andrea Sarnari, president of the FAA, acknowledged that Milei's speech confirmed the government's existing policies but offered no new immediate relief for the agricultural sector. "It was more a recap of policies carried out so far, with a projection of where we are going, which is to continue with the reduction of tax pressure, but without any announcement that could accelerate that process, which is what we need," she stated.

Sarnari echoed Pino's call for legislative action, arguing that the removal of export taxes should be decided by Congress. Both leaders also agreed that state revenues should be reinvested in infrastructure, roads, schools, and services in the interior regions of the country.