CORRECTED: Argentina’s Ag. Ministry confirms soybean, meal and oil export duties

Argentina’s Agriculture Ministry confirmed it is to increase export duties for soybeans to 33%, but only for farmers producing over 1,000 mt of soybeans.

Those producers harvesting between 500 mt to 1,000 mt will continue to pay the old duty of 30%, while farmers with an output of less than 500 mt in a crop cycle will pay an export duty ranging from 20% to 29%, the ministry said.

The lower level of export duty will be paid by those farmers harvesting less than 100 mt of soybeans.

According to information provided by the government, soybean producers impacted by the increase in export duties represent 26% of the total number of soybean producers and 77% of the country’s total production.

The ministry said soyoil and soymeal shipments will also pay an export duty of 33%, up from previous 30%.

Meanwhile, the government decided to maintain the duty of 12% on corn, wheat and sorghum exports and cut export duties on sunflower exports from 12% to 7%.

The government expects to publish a decree in the country’s Official Gazette in the coming days.

“We applied the concept of social equity: that is, what goes up in export duties to those who are more able to contribute, will benefit other less favoured producers,” Agriculture Minister Luis Basterra said on Twitter.

The announcement was made following a meeting between Basterra and the four main lobby groups – the CRA, FAA, Coninagro and the Rural Society – to discuss changes to the export duty scheme.

The lobby groups said they will analyse the changes in the export duty scheme in order to define the next steps, which could potentially include protests and the suspension of grain sales.

Farming association Carbap vice president Jorge Arocena told Agricensus that the entity rejected the government’s decision to hike export duties on soybean shipments.

“We continue to analyse the situation and we will see what will be our next steps,” he said.

Corrects that the lower tax rate will apply to farmers who produce less than 1,000 mt in the first three paragraphs.