Argentina’s Change of Course

Dec 20, 2023

Argentina is expected to be the world’s largest exporter of soybean meal for the current marketing year, the third largest corn exporter, the fourth largest soybean exporter, and the sixth largest wheat exporter. Argentina also exports sizable amounts of beef. Argentina is a player in global markets despite the significant domestic economic challenges it faces. The country is debt ridden, suffers from high inflation (more than 142 percent in October), plagued with poverty, and has negative foreign currency reserves. Moreover, the Argentinian government imposes export taxes of 33 percent on soybeans, 31 percent on other soybean products, and 12 percent on corn and wheat.

Into this economic malaise enters Javier Milei, a libertarian and self-described “anarcho-capitalist” who won the Argentinian presidency. Milei, an economist and former TV pundit, has proposed several “radical” policies to right the Argentinian economic ship. The most radical of these proposals is the “dollarization” of the economy. Argentina would ditch its currency (peso) and conduct all business in U.S. dollars. Milei also said he would repeal the taxation of agricultural exports. Already within the first week of taking office, the economic team installed by Milei has implemented several changes including the devaluation of the peso by 50 percent, slashing government spending and subsidies, and indicating export taxes on some grains would be raised, although no specifics were provided on which grains would be subject to the higher tax.

What might these policy turns mean for U.S. agricultural producers? U.S. commodity prices and competitiveness in global markets is sensitive to changes in competitors’ currencies. As such, the devaluation of the Argentinian peso would tend to be bearish for U.S. prices. Milei’s goal to repeal the export taxes on grains and oilseeds could stimulate crop production and pressure U.S. prices as well. Reuters reported that the last time Argentina scrapped its export taxes, eight years ago, wheat production in the country climbed 52 percent.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.