Export tax rattles Argentine corn growers

BUENOS AIRES, Argentina (Reuters) — Argentine farmers may delay wheat sales and plant less corn this year under a new export tax system announced last week, growers and analysts said, while soy production was expected to be less affected.

The government slapped a roughly 10 percent tax on corn and wheat exports, which will rise and fall with the exchange rate.

“This will delay sales because farmers will be playing the exchange rate,” said David Hughes, president of the Argentrigo wheat industry organization.

The new farm tax system is included in a package of measures Argentina is proposing to the International Monetary Fund in order to lock in early cash disbursements of its $50 billion standby financial agreement.

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