Argentina eliminates wheat, corn export tax for small growers

 

 

 

The moves are designed to mollify disgruntled farmers and stimulate increased corn planting.

 

Fernandez said that the tax breaks would see half of the export tax from corn and wheat returned to farmers. Wheat exports are currently taxed at 28 percent, while corn exports are taxed at 25 percent. Soy exports carry the highest export duty of 35 percent.

 

One percent of all wheat growers produce half of all output and 5 percent of all corn farmers grow half of that crop, the president said. This means that the majority of the country's farmers will see benefits from the lifting of export taxes on those crops, she said.

 

Fernandez noted that the move would have an effect on the country's fiscal situation, but was needed to stimulate expanded corn planting among small-scale growers.

 

Fernandez also defended the government policy of imposing export taxes and granting subsidies to meat and dairy producers as necessary to shield local consumers from high international food prices.

 

The measures "are not just for tax revenue, but are a political-economic policy," Fernandez said.