Argentine Farmers Favor Corn Over Soy Amid Taxes and Low Price

Farmers in Argentina, a leading global grain supplier, are likely to prioritize corn over soybeans in the 2025/26 season due to higher export taxes on soy and subdued prices, Nicolás Pino, president of the SRA agricultural association, told Reuters. Argentina, the world’s top exporter of processed soy oil and meal and the third-largest corn exporter, significantly influences global markets. The planting season for corn and soybeans is set to begin in September.

Pino highlighted that higher corn prices and lower domestic taxes compared to soybeans are key factors in farmers’ planning. Export tariffs on soybeans have risen to 33% for beans and 31% for soy oil and meal after a temporary tax cut ended this month, while corn faces a 12% tax. Despite favorable weather forecasts, soy production could surpass this season’s expected 50 million metric tons, and corn may exceed 49 million tons, but the balance is expected to tilt toward corn.

Global prices for both soybeans and corn remain low, intensifying focus on tax burdens and profit margins. Pino noted that with soybeans priced at around $370 per ton globally, combined with high taxes, farmers—especially those renting land (over 60% of the total)—face bankruptcy risks. He urged Argentina’s business-friendly President Javier Milei to eliminate export taxes to boost competitiveness, as higher taxes compared to neighboring Brazil have hindered the sector’s growth for years.

Argentina’s total grain production for the 2024/25 season is projected to reach 136 million tons, according to the Rosario grains exchange. Pino expressed optimism about the government’s intent to reduce taxes but stressed that farmers feel time is running out for these changes. “For us farmers, it sometimes feels like time is slipping away,” he said, emphasizing the need for swift reforms to ensure the sector’s sustainability.

Pino also pointed out that high taxes and low global prices create additional pressure on farmers renting land, potentially leading to reduced soybean planting areas. While the shift toward corn may help diversify farmers’ incomes, without a reduction in tax burdens, Argentina’s agricultural sector risks remaining stagnant, losing its competitive edge on the global market.

Tags: Argentina, corn, soybean