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Below is an excerpt from our white paper about the improving agricultural investment climate in Argentina. Don’t hesitate to reach out to us at contact@agdtours.com for more information about how to experience these opportunities for yourself.
Taxes on agricultural commodities are shrinking by the day. Shortly after his election in December 2015, President Maurico Macri ushered in a new more market-friendly administration which immediately began implementing a series of agriculturally beneficial tax reforms. He reduced the export tax on soybeans and its byproducts by 5% and eliminated all export taxes on all other remaining commodities. These commodities with a new zero percent export tax include meat products, grains, fruits, and vegetables. He also eliminated export permit requirements for grains and oilseeds and removed the country’s foreign exchange restrictions, which devalued the Argentine peso by approximately 45%[i]. This action allowed the peso to float freely in relation to the USD, nearly eliminating the “black market” for the USD almost overnight. Many of these changes are expected to significantly improve farmer returns and encourage greater wheat and corn planting for the 2016-17 season and beyond. In March of 2016, the Argentine government suspended the collection of the $160 USD reciprocity fee from US passport holders who visit Argentina for less than 90 days for tourist or business purposes[ii].
Argentina is a home to a thriving agricultural industry, modest land prices, pro-foreigner land ownership practices, and emerging tax reforms for farmers. It’s no wonder why an agricultural investment in Argentina is a viable investment alternative, one the founder of AG DTours and his family have already capitalized on.
AGD Consulting