The national government is considering extending the reduction in corn taxes, increasing tensions with soybean producers.

With just six business days until the expiration of the tax benefit, the government has yet to decide whether it will maintain the reduction in corn withholding taxes . The measure, which allowed soybean and corn exports to be declared at reduced rates, is in effect until June 30. Meanwhile, expectations are growing in the agricultural sector regarding a possible extension for the grain, in contrast to the official confirmation that soybeans will return to a 33% withholding tax.

According to rural sector sources, Economy Minister Luis Caputo and his team are considering maintaining the corn tax at the current 9.5%—and not returning to the original 12%—at the direct request of agricultural entities . Although there are no official details, the decision is expected to be announced soon. Pressure for a clear definition intensified with the express request of Nicolás Pino , president of the Argentine Rural Society, who reportedly warned the minister: "Reduce the pressure now."

The possible continuation of the reduction is related to the need to provide relief to producers in the north of the country, who have just begun their corn harvest . The Civil Association of Agricultural and Livestock Producers of the North (Apronor) published a petition demanding the complete elimination of the withholdings, warning of widespread bankruptcy in the sector and the disappearance of agricultural businesses.

The case of soybeans is different: starting July 1, the withholding tax will return to 33%. This was confirmed by the Ministry of Economy, which argues the need to strengthen tax collection within the framework of the zero-deficit program. According to official projections, with an estimated harvest of 35 million tons, the fiscal impact of returning to the original rate could contribute nearly $700 million in additional revenue to the Treasury.

With the June 30 deadline, this month could become a record for foreign currency settlements by the agro-export sector since Javier Milei took office. According to industry operators, a large portion of the soybeans sold so far have yet to be priced, so a significant influx of transactions is expected in the final days of the month.

Once the deadline expires, sales could slow until August or September, when the new agricultural season begins and input purchases and rent payments resume. In this scenario, producers plan to store their grains as a store of value, amid ongoing inflation and a lagging exchange rate.

In parallel, the Ministry of Economy is also considering eliminating the 6.75% withholding tax on steer cuts of beef. This measure, which would benefit the export industry in the face of competition from Brazil and Paraguay, could be President Milei's star announcement at the opening of the Palermo Rural Exposition, scheduled for July 26.

The fiscal impact of this elimination is estimated at between $100 and $120 million annually, but the government believes the cost is marginal compared to the political benefit. However, they fear that easing this tax would boost domestic prices, which would further fuel tensions with consumption.

At the Casa Rosada, the priority remains achieving fiscal balance and building reserves. While revenue from withholding taxes is significant in some areas, in others, their impact is more symbolic than effective. Therefore, each decision is carefully considered against the backdrop of the October legislative elections.

In this context, Caputo reiterated that the decline in soybeans was always temporary. Although some farmers expressed disappointment, the ruling party maintains that Milei's message in Palermo will be met with applause if accompanied by concrete announcements for the agricultural sector. Pino is preparing to deliver the official invitation in the coming days and, according to reports, will take the opportunity to emphasize—once again—that the agricultural sector wants to be part of the recovery, but needs clear rules.