Argentina cuts export taxes on grains and outlines further reductions through 2028

Argentina has reduced export taxes on wheat and barley from 7.5% to 5.5%, effective immediately, while outlining a schedule of additional cuts for soybeans, soy products, corn, sorghum, and sunflower exports beginning in January 2027. The measures were formalized through Decree 423/2026, published in the country’s Official Bulletin on June 3, following President Javier Milei’s announcement in May.

The reduction in the wheat and barley tax comes as Argentine farmers begin planting for the new season. Producers were expected to reduce acreage due to rising production costs, particularly fertilizer costs, and weak grain prices. According to the USDA report, the lower export tax could encourage additional wheat and barley planting and help limit declines in planted area.

The government also announced a phased reduction of export duties on major agricultural commodities through December 2028, subject to economic conditions. Soybean export taxes, currently 24%, are scheduled to decline gradually to 21% by the end of 2027 and 15% by the end of 2028. Corn and sorghum duties are projected to fall from 8.5% to 5.5% over the same period, while sunflower export taxes are expected to decline from 4.5% to 3%. Wheat and barley duties will remain at 5.5% after the latest reduction.

Reducing export taxes has been a central goal of Milei’s administration, which views the levies as a distortion to agricultural markets. The latest measures represent the third round of export tax reductions since Milei took office in December 2023. The country’s agricultural sector welcomed the announcement, saying lower taxes will improve farm profitability by increasing producers’ returns.

Source: USDA Foreign Agricultural Service