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Argentina Crops Setting Records Under New Rules

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Argentina
Argentina

Argentina is poised to double its corn and wheat crops following the revision of grain export policies. An Argentine agriculture official says the policy changes are expected to spur double the wheat planted area and corn planted area should follow in the next year, telling Bloomberg that “for sure we will have record crops of both cereals from now on.” Export restrictions were implemented in the past decade in a bid to boost government revenue and ensure domestic supplies. Local prices for corn and wheat slumped and farmers reduced wheat plantings, switching to crops that didn’t require export permits and weren’t taxed such as barley.

However, with the election of a new president who is export friendly, the tides have turned, following the lifting of currency controls and easing of export taxes. In the last 10 days, Argentina shipped three times the amount of grains and oilseed abroad that it sold in the entire month of November. It shipped $1.2 billion worth in the last 10 days compared with November exports of $451 million.