Argentina cuts grain export taxes to bolster farm sector
Milei government trims levies as growers welcome renewed relief
10 December 2025
2 minute read
By: Argentina will lower export taxes on grains including soybeans and corn, the economy minister said on Tuesday, a move that was welcomed by the South American nation's powerful farming sector, which has been a core support base for President Javier Milei, reported Reuters.
Since campaigning for the presidency, Milei has told Argentine exporters that he wants to cut taxes but warned that he must do it in stages to avoid a too rapid fall in tax income.
The levy on soybean exports will be cut to 24% from 26%, Economy Minister Luis Caputo said in a post on X, while soybean byproducts will be taxed at 22.5%, down from 24.5%.
At the beginning of Milei's term around two years ago, export levies on soybeans and soybean byproducts were 33% and 31%, respectively.
Argentina is the world's largest exporter of soybean oil and meal, the third-largest corn exporter and an important global wheat supplier.
Export taxes on wheat and barley will be reduced to 7.5% from 9.5%, while those on corn and sorghum are being cut to 8.5% from 9.5%.
"Today we take a new step on the path to tax relief for the agricultural sector, moving forward on a permanent reduction of export duties for grain and byproduct chains," Caputo said.
The measure will take effect once it is published in the country's Official Gazette in the coming days, a source from the Argentine government said.
Gustavo Idigoras, president of the CIARA-CEC grain exporters and processors chamber, told Reuters the decision was "highly valued" by the agricultural sector.
"It is essential to continue making progress in reducing tariffs," he said.
The measure was also welcomed by local farmers' confederation CRA. Its president Carlos Castagnani said it was "a step that begins to restore profitability to the sector".
The Agrarian Federation and CIARA-CEC, which counts agribusiness giants Bunge, Cargill and Louis Dreyfus among its members, also supported the measure, though analysts said its impact on domestic trade could be limited.
"I don't think it will have much impact on the price paid by buyers (exporters)," said independent market analyst Lorena D'Angelo. "It provides clarity for the 2025/26 season, but I don't think there will be a flood of business."
Dante Romano, an agribusiness expert at Rosario's Austral University, said it would likely have a greater impact on Argentina's 2025/26 wheat crop, which is trading at very low prices as farmers expect a large harvest.
Argentine farmers are harvesting their wheat crops and sowing fields with soybeans and corn for the fresh season.
News of the tax cuts pushed down wheat futures prices in Chicago on Tuesday.
