The agricultural sector is reshaping its expectations, but is still seeking lower tax pressure.

The return of export duties to the values ​​they had until last year is just around the corner. Javier Milei's government confirmed—through the president himself—that export duties on soybeans, soybean derivatives, and other crops will return to their original values ​​after a temporary reduction that ends in July. The pressure of the calendar, coupled with the new exchange rate regime that eliminated the "blended" dollar but also liquidated parallel dollar quotes, appears to be having an impact on the business decisions of producers and exporters.

In April, agricultural sales grew by more than 30% compared to the previous month, and it is estimated that more than US$2.5 billion was collected in the state coffers.

The CEO of Grupo Cresud, one of the leading agricultural holding companies, spoke about the current situation and future prospects. At the Córdoba Stock Exchange, Alejandro Elsztain reflected on the fact that, for many years, Argentina spent more than it could afford, and now, with Milei, we are spending what we have. "I believe a new cycle is beginning, and society is understanding it. The world is talking about the Milei effect," he said.

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Along these lines, he emphasized that "the exchange rate controls are even worse than the withholding taxes. Our producers earned almost four times less than American producers. Today we're alive; we've lost a lot of ground in the world, but we're surviving. Producers are subsidized around the world, but in Argentina it's a hunt." For the businessman, the agricultural sector is undergoing a reconversion with industrial models, a framework that offers genuine growth opportunities: "Argentina has a soybean production rate unmatched by any other country. This is an industrial country that is reconnecting with the world. The agricultural sector is going to become a factory; that is the agricultural sector of the future in Argentina. Let's prepare for an agricultural sector we haven't seen in a long time," he asserted.

If there is an adjustment, let it be from the State

On a more local level, there was also news this week, as the Jesús María Rural Society, one of the most influential bodies in the agricultural policy framework, renewed its leadership. Eduardo Riera was re-elected for a new term.

What are your expectations for this new administration? The expectations are really good, in the sense that many things were being done and are beginning to bear fruit. The first projects are starting to arrive, especially for the Northwest Arc, an area that was largely neglected and where there is a huge lack of infrastructure, connectivity, and electricity projects. Well, having been able to agree with the provincial government to begin the projects is very important. We are working with a credible agenda.

- At the time, the dialogue with the Province wasn't the best; they were even excluded from some meetings and decisions. How is that dialogue going today? - Look, regarding the Provincial government, yes, it's fine; there's a much more mature dialogue in this line of work. We no longer belong to Cartez at this time; all these rural associations in this area have withdrawn, meaning we don't belong. We're working on some specific issues. We're working on the formation of our own second-level association, which is the institutional objective.

-But with the Province, is there another dialogue? -Yes, for the past three months, well, it's not just a dialogue, it's important work, serious work. For example, we meet every three weeks with the Minister of Infrastructure. There was a before and after January, and a significant roundtable discussion began, with projects beginning for the area.

-Looking at the macro level, what is the business climate like for producers after the lifting of the currency controls and the new exchange rate scheme? -Well, I think it's a rather complicated situation for production in general. But the overall scenario that has changed is that now, I'm not just talking about producers, but now you can't cover up inefficiency with inflation. We have to work to be more efficient in what each of us produces. And there's the issue of withholdings, which is a key issue for the Jesús María Rural Society. We're the only ones who went to court and filed an injunction that went through the ranks. Our claim is clear because withholdings must be zero.

-Is there any expectation that the legal action will be successful? -And look, it's been going through various stages and is now at the highest resolution stage, but as of today, we have no news.

The government wants to further improve the fiscal surplus. If there's less room for further cuts, the only option is to increase revenue or basically raise taxes. Are you worried about greater fiscal pressure? What I have to wait for, what we all hope for, at least, is the president's commitment that all the taxes, all the things that are putting pressure on us, will be eliminated as quickly as possible. Let's hope that comes true. That's the only thing I can tell you. And if they want to improve the surplus, they'll have to adjust; obviously, there are still many issues to be addressed on the government side.

-This new term of yours lasts two years. Will you see a reduction in withholding taxes during these two years? -No, I don't know. We're hopeful. I don't know if they'll lower it to zero, but, well, I hope this will go down and that they'll keep their word, as they've pledged.

-Does it bother you that the Rural Department is being referred to as an opposition entity? Because they've been critical of the Nation, but also of the Province. -It's up to us to defend the interests of producers; we're going to defend the interests of producers. And we're going to do what the producer's agenda dictates. Because, just as we talked about not having withholdings, there shouldn't be a Check Tax either. There are many things to do to reduce the tax burden. Our sector is one of the engines of the economy, and it's clear that if you take even a little pressure off it, it explodes.