Milei signals potential cut to farm export taxes ahead of rural exhibition

Argentine President Javier Milei has once again signaled his intention to eliminate agricultural export taxes, a key promise to the farming sector. Speaking at the 210th anniversary of the Independence Day celebration in Tucumán, Milei reaffirmed that removing these "distortive" taxes remains a top priority, but stressed that the pace of change depends on achieving a balanced public budget.

"The export taxes on agriculture have stripped the productive interior of its potential for decades, and their elimination is one of our main priorities as long as the surplus allows it," the President stated. His comments come as agricultural entities and export chains anticipate official measures, particularly with the upcoming 138th Palermo Rural Exhibition, a traditional venue for government announcements on agricultural policy.

Since taking office, Milei has consistently criticized export duties, labeling them as detrimental. However, he has consistently qualified his promise of elimination, emphasizing a gradual approach contingent on fiscal surplus consolidation, a condition he reiterated in Tucumán. The government has already taken steps, including reducing export taxes on wheat and barley in June and establishing a phased reduction plan for soybeans, corn, sunflower, and sorghum starting next January, extending until December 2028.

These reductions were formalized through Decree 423/2026. The decree differentiates between winter and summer crops. For winter crops like wheat and barley, the immediate reduction lowered the tax rate from 7.5% to 5.5%. For summer crops, a gradual schedule was implemented to ensure lower rates are in effect during the marketing period of the produce. The decree also adjusted taxes on processed products from these chains, with rates ranging from 1% to 3.5%.