U.S. trade competitor proposes tax impacting grain
Argentina is proposing a new tax on companies that they say are generating ‘extrodinary income’ because of the conflict in Ukraine.
Ag economist Ben Brown with the University of Missouri says the tax would heavily impact the country’s crop farmers. He tells Brownfield the move could benefit U.S. growers.
“This really plays into not having the grain to the export terminals to be able to export,” he said. “And so, that could open some additional windows for U.S. producers to export some more grain.”
Brown said Argentina’s inflation is in on track to reach 70 percent this year…
“Argentina is trying to find ways to control domestic inflation within their country [and] also help consumers; people that buy and consume grain whether that’s livestock producers to produce meat or whatever,” Brown said.
He said the trade competitor’s spiking inflation is also incentivizing farmers to only sell grain when they need to move money into another asset.
Brown made his comments on Brownfield’s recent Weekly Commodity Market Update.