Yesterday, January 23, 2025, Argentina’s Minister of Economy, announced a temporary reduction in export duties on key agricultural products, including soya, wheat, barley, corn, sorghum, sunflower. Additionally, export duties on regional economies will be permanently eliminated. This measure, effective from January 27 to June 30, 2025, aims to provide relief to the agricultural sector amid challenges such as drought and declining international commodity prices. 

In short, the export duties will be reduced as follows:
– Soya decreases from 33% to 26%
– Soya by-products decreases from 31% to 24,5%
– Wheat, barley, sorghum and corn decrease from 12% to 9,5%
– Sunflower decreases from 7% to 5%

The reduction in export duties is expected to have a significant impact on soybean prices and could accelerate the inflow of foreign currency. Economists estimate that the initial fiscal cost of this reduction is approximately US$1.4 billion, representing about 0.28% of the projected 2025 GDP. For producers, this translates to an additional income of around US$1.75 billion.

While the measure provides some financial relief to producers, there is concern that the temporary nature of the reduction may lead to a surge in soybean sales before the June 30 deadline, potentially causing a drop in prices received by producers. Analysts also note that the impact on other crops like corn and wheat may be more limited.

Overall, this policy change is seen as a positive development for the agricultural sector, offering much-needed support during a challenging period.