Lower withholdings: from agriculture they highlighted the Government’s announcement although they ask that it be permanent

The most immediate impact will be the reduction in the rates of the main crops. Starting next Monday, soybeans will reduce their retention from 33% to 26%, while derivatives such as oil and flour will go from 31% to 24.5%. On the other hand, wheat, barley, sorghum and corn will decrease from 12% to 9.5%. Even sunflower, which had a load of 7%, will go to 5.5%. These reductions will be in effect until June 30, 2025, providing temporary relief to the sector.

Beyond main crops, the permanent elimination of withholdings for regional economies represents a historic milestone. Products such as sugar, cotton, tobacco, bovine leather, rice and others will benefit from this measure. “It is a sign of justice for those who support a large part of the national economy from within the country,” said Luis Caputo, Minister of Economy.

The Secretary of Agriculture, Sergio Iraeta, reinforced the importance of these measures by pointing out that they come at a critical moment. “The drought and low international prices required an immediate response. Now producers will be able to plan for the long term with better conditions,” he said. Furthermore, he stressed that these decisions not only boost the competitiveness of the sector, but also strengthen regional development.

Repercussions on the agricultural sector

The Government warns that the reduction in withholdings from the countryside not only represents fiscal relief, but also an opportunity to revitalize production and improve the country’s economic projections. According to Caputo, “we are facing a clear signal of support for the sector. “It is the beginning of a change that will allow the countryside to once again be an engine of development.”

From the productive side, Gustavo Idigoras, president of the Chamber of the Oil Industry and the Center of Cereal Exporters (CIARA-CEC) warned Ámbito that “a reduction in withholdings is an extremely positive and important fact and we greatly value the effort.” of the Ministry of Economy in this announcement. Clearly it is a temporary withdrawal, so we have to see the fine print of the withdrawal of rights and how it will be applied and what type of commitments or conditions said decree has. We understand that the decree will come out on Monday, so we are going to wait to see the contents of it to see how the market will react, but naturally we always welcome any reduction in withholdings.”

For Argentine Rural Confederations (CRA), one of the entities that makes up the Liaison Table and that will participate in the meeting scheduled for next February 6 with Minister Caputo, the measure generates certain expectations. Its president Carlos Castagnani told Ámbito that “from our entity we value these measures that seek to alleviate the burden of producers and enhance the competitiveness of the Argentine countryside. Reducing withholdings on soybeans and eliminating them for regional economies is an important step towards a fairer and more efficient system. These decisions show that it is possible to advance policies that encourage production and development in our regions, an essential engine of the national economy.”

An incentive to “speed up” marketing

Beyond the “gesture” involved in making a decision like the one announced by the Government, it is clear that it will seek to balance the needs of the countryside with the economic stability of the country and although the reduction in withholdings is temporary, its impact could extend beyond June 2025, laying the foundations for the productive transformation that the countryside has been demanding for a long time.

In this sense, the entities and the Government are working together ahead of the meeting in the coming days, because in agriculture no one abandons the idea of ​​moving towards the total elimination of export duties on all extensive crops.

That agriculture supports Javier Milei is a reality, however, there are some doubts as to the cause that motivated these announcements. It is known that the Central Bank had to use more than US$ 1,602 million to contain the exchange rate and that with the current values ​​of the North American currency in the field the numbers do not close, with which the currency settlement could be delayed when the marketing of soybeans of the new campaign.

The macroeconomic numbers are very encouraging, but without a doubt it will be essential to have the contribution of agriculture during the first half of the year. With this measure – which has a certain aroma of “soy dollar” – it is clear that the Government will seek to encourage producers to market and as detailed by the secretary of production coordination, Pablo Lavigne, exporters will be forced to liquidate the foreign currency to the 15 business days from the declaration of sale abroad.