Trade and markets
 

Detail

Area
Argentina
Commodity Group
Oilseeds, oils and meals
Commodity
All
Date
01/03/2015
Policy Category
Production
Policy Instrument
Agricultural policy
Description
Established a fund to support small and medium-sized grain/oilseed farms, with the specific objective of reducing the export tax burden faced by small/medium producers.
Notes
The government decided to set up a fund worth ARS 2.5 billion (USD 283 million) for the specific support of small and medium-size grain and oilseed producers, i.e. those with a total annual production capacity of less than 700 tonnes. Funded by existing taxes on the exports of large farms, the measure is meant to relieve the problems afflicting small farms, caused mainly by the continuous drop in international prices that started in 2013. Reportedly, the new fund, which is expected to be in place in April, will allow to reduce the export tax burden faced by small/medium producers by up to fifty percent. The around 46 000 farms qualifying for the support represent some 70 percent of all farms but only account for 12 percent of the country’s total output of grains and oilseeds, pointing to an skewed distribution of land and revenues in the sector.