Agricultural Policy Monitoring and Evaluation 2024

3. Argentina

Main findings

Support to agriculture

Argentina’s overall support to the agricultural sector has been negative since the beginning of the 2000s due to export taxes that depress domestic prices received by producers. However, some budgetary payments are provided to producers based on input use, mainly in the form of credit at preferential rates. Occasionally, direct payments are provided as disaster assistance in response to extreme weather events, most frequently for drought.

Support to producers (Producer Support Estimate, PSE) averaged -13.7% of gross farm receipts in 2021‑23, compared to -5.1% two decades earlier (2020-22). Fluctuations in support are driven by changes in market price support due to changing export tax rates and macroeconomic conditions such as the steep depreciation of the Argentine peso since 2018 and periods of high inflation. The ratio of producer to border price (National Protection Coefficient, NPC) reached 0.9 in 2021-23, making producers’ prices on average 10% below world market prices.

During 2021-23, Single Commodity Transfers (SCT) were most negative for milk, poultry meat and soybean. Price support and SCTs were positive only for pig meat and eggs. Mirroring the negative PSE, consumers enjoyed a positive Consumer Support Estimate (CSE) of 9.3% of expenditure at farm-gate prices in 2021-23.

Support to general services (General Service Support Estimate, GSSE) decreased from 0.7% in 2000-02 to 0.4% in 2021-23 relative to the value of agricultural production, well below that of most emerging economies covered in this report. Expenditure on the agricultural innovation system and extension services represents the largest component of GSSE but has been decreasing relative to other GSSE components.

Total budgetary support to farmers and the sector overall was 0.1% of Gross Domestic Product (GDP) in 2021-23, well below the absolute value of negative market price support, making the Total Support Estimate (TSE) negative throughout the period: -0.8% of GDP in 2000-02 and -1.6% in 2021-23.

Key recent policy changes

Argentina abolished the executive power to adjust export taxes, now requiring any adjustments to be decided through the legislative process. Existing export taxes continue to apply.

In 2023 measures were implemented to support agricultural production systems affected by one of the worst droughts in the last century, including feedlot production for beef supply, avian and sheep wool producers, and dairy producers. Compensatory payments aim to mitigate the adverse impacts of low yields and production costs that are exacerbated by macroeconomic instability.

The government enacted a new law promoting organic production in the regional economies and implemented initiatives to raise awareness and provide information about certified organic operators. In addition, reference quality labels were awarded to over 500 food industry products, enhancing the distinction and value of Argentine foods in the domestic and international markets.

Argentina approved the Bioeconomy Action Plan and formed the Argentine Federal Bioeconomy Network to promote sustainable and comprehensive use of biological resources. The initiative Bioenergy Municipalities Programme was created to promote the use of residual dry biomass.

Assessment and recommendations

• Sustainable productivity growth is a critical concern for Argentina given its significant reliance on agricultural production and exports. Over the years, the country has capitalised on its abundant natural resources and embraced technological advancements to enhance productivity. However, Argentina is vulnerable to a wide variety of climate change impacts (including floods and droughts) and faces several environmental challenges (including low nutrient balances, high energy use and GHG emissions, and water deficit regions), and slowing productivity growth.

• Argentina has adopted policy measures to foster sustainable productivity growth under the Bioeconomy strategy. Public research and development (R&D) efforts have contributed significantly to technological progress and productivity growth, while other initiatives have supported environmentally and socially impactful projects, or improved resilience to climate risks. For example, the updated soil carbon mapping and inventories of agricultural greenhouse gas (GHG) emissions generate relevant information, and some programmes facilitate knowledge exchange and collective advancement in sustainable production practices.

• Further investment should be made to provide technical assistance, training, and capacity building for farmers to become more resilient and improve their sustainability performance. The government should encourage farmers to adopt climate-smart practices, crop diversification, and sustainable land-management techniques through targeted support programmes and financial incentives. The recognition of carbon markets as one of the mechanisms to contribute to compliance with environmental commitments in 2023 is of interest for agriculture.

• The December 2023 shift of responsibility for export taxes to the legislature creates a more predictable framework to foster long term investment and reduce food insecurity. More actions are needed to implement a balanced and transparent approach to export taxes that considers the economic viability and competitiveness of agriculture as part of an economy-wide tax-system review relying on alternative sources of fiscal revenue rather than on export taxes.

• More generally, agricultural policy could be better anchored in a broad and long-term policy framework, moving towards more neutral, stable, predictable and targeted policies. Avoiding delays in policy implementation will help farmers to plan their economic activities more efficiently.

• More investment in irrigation infrastructure and improved water-management systems is needed to address persistent drought and cover water-deficit regions. Promoting drought-tolerant crops and sustainable farming practices can also enhance resilience in the face of changing climate patterns.

• Financial assistance programmes should be extended to facilitate access to credit with preferential interest rates for small and medium-sized producers. Investing in training programmes, knowledge-sharing platforms, and the development of regional agro-industrial value chains can boost the competitiveness and resilience of these producers.

• To deliver research, extension, and other public goods for agricultural innovation, Argentina should develop systematic monitoring of efforts and results in R&D and innovation and define and implement strategic priorities. Innovation policy should emphasise public goods such as those related to sustainability and improving value chains.

Development of support to agriculture

Figure 3.1. Argentina: Development of support to agriculture

Table 3.1. Argentina: Estimates of support to agriculture

Million USD

	2000-02	2021-23	2021	2022	2023p
Total value of production (at farm gate)	16 296	84 733	55 065	73 484	125 648
of which: share of MPS commodities (%)	82.55	83.93	86.48	84.75	80.57
Total value of consumption (at farm gate)	7 417	58 353	37 860	50 809	86 391
Producer Support Estimate (PSE)	-837	-11 738	-15 181	-13 715	-6 317
Support based on commodity output	-871	-11 882	-15 296	-13 872	-6 479
Market price support¹	-934	-11 933	-15 320	-13 936	-6 542
Positive market price support	47	386	424	426	308
Negative market price support	-981	-12 319	-15 743	-14 362	-6 850
Payments based on output	62	50	24	64	63
Payments based on input use	34	142	111	155	160
Based on variable input use	2	15	11	11	24
with input constraints	0	0	0	0	0
Based on fixed capital formation	23	100	79	116	104
with input constraints	0	0	0	0	0
Based on on-farm services	8	27	21	28	33
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	2	3	2	2
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	2	3	2	2
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	-9.15	-9.79	-27.50	-18.61	-5.02
Producer NPC (coeff.)	0.91	0.90	0.77	0.83	0.95
Producer NAC (coeff.)	0.92	0.91	0.78	0.84	0.95
General Services Support Estimate (GSSE)	116	394	266	406	511
Agricultural knowledge and innovation system	66	202	120	179	306
Inspection and control	33	131	113	151	129
Development and maintenance of infrastructure	17	40	31	33	54
Marketing and promotion	0	22	1	42	21
Cost of public stockholding	0	0	0	0	0
Miscellaneous	0	0	0	0	0
Percentage GSSE (% of TSE)	.	.	.	.	.
Consumer Support Estimate (CSE)	216	8 511	11 638	11 494	2 400
Transfers to producers from consumers	254	9 261	12 677	12 077	3 028
Other transfers from consumers	-6	144	14	421	-2
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	-32	-894	-1 053	-1 003	-626
Percentage CSE (%)	6.34	9.27	30.74	22.62	2.78
Consumer NPC (coeff.)	0.93	0.91	0.75	0.80	0.97
Consumer NAC (coeff.)	0.94	0.92	0.76	0.82	0.97
Total Support Estimate (TSE)	-722	-11 344	-14 916	-13 309	-5 806
Transfers from consumers	-248	-9 405	-12 691	-12 497	-3 026
Transfers from taxpayers	-467	-2 083	-2 239	-1 232	-2 778
Budget revenues	-6	144	14	421	-2
Percentage TSE (% of GDP)	0.78	-1.57	-3.06	-2.10	0.94
Total Budgetary Support Estimate (TBSE)	212	589	404	627	736
Percentage TBSE (% of GDP)	0.10	0.11	0.08	0.10	0.12
GDP deflator (2000-02 = 100)	100	20 741	9 551	16 187	36 483
Exchange rate (national currency per USD)	1.70	173.95	95.08	130.66	296.11

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Argentina are: wheat, maize, soybean, sunflower, fruit and vegetables, milk, beef and veal, pig meat, poultry and eggs.

Source: OECD (2024), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

Unlike most countries covered by this report, Argentina maintains export restrictions that result in domestic prices to be lower than on international markets. Export taxes are by far the most important market intervention and a major source government of revenues. The responsibility of the Ministry of Finance to design and implement these export taxes and adjust their rates by decree was removed by the new administration in December 2023. This means that since early 2024, new trade restrictions are only possible through the legislative process. Existing export taxes on soybeans, soybean products (meal and oil), maize, wheat, other cereals, sunflower grain and oil, maize and wheat flour, several milk products, and beef continue to apply.

Argentina provides a relatively small amount of input subsidies, mostly via preferential credits that finance investment and working capital in the production of a range of commodities. For example, the fund FONDAGRO, established in 2017, finances investment in the sector at preferential interest rates for specific groups with a limited scope. The Ministry of Productive Development provides credit financing for capital investments by micro, small, and medium-sized enterprises in the poultry and pig sectors. Direct payments are provided occasionally as disaster assistance in response to extreme weather events, most frequently for drought.

The Special Tobacco Fund (FET) was created in 1972 to provide additional revenue and support to tobacco producers in certain northern provinces. The fund is financed by a 7% tax on tobacco retail prices and managed by the Ministry of Agriculture, Livestock, and Fisheries. The federal government transfers 80% of collected funds to tobacco-producing provinces based on their share of production. After signing the WTO agreement in 1994, Argentina committed to reducing this support, and FET payments to tobacco producers have declined. The remaining funds are used for technical assistance, investing in local infrastructure, and providing social and health assistance.

Public expenditures in agriculture are mainly for general services to the sector such as the agricultural knowledge and innovation system and inspection control services. INTA is the federal agency responsible for research and promoting technological innovation in agriculture, livestock, and agri-food. The institute conducts scientific and technological research, provides technical assistance and training to farmers and other stakeholders in the agricultural sector, and develops and disseminates knowledge and technologies related to agricultural production, agro-industrial processes, and rural development. INTA also collaborates with national and international organisations, universities, and private companies to promote innovation and competitiveness in the agricultural sector (OECD, 2019[1]; Echeverria, 2021[2]).

SENASA is responsible for ensuring the safety and quality of agricultural and livestock products. It develops and enforces regulations and standards for the production, processing, and transport of agricultural products and it provides certification, inspection, and laboratory services to ensure compliance with these standards. SENASA also works to prevent and control the spread of animal and plant diseases and monitors and controls the use of pesticides and other agricultural chemicals to protect human health and the environment.

The Provincial Agricultural Services Programme (PROSAP) invests mainly in large-scale agricultural infrastructure and provides support services for competitiveness with projects aimed at improving agri-food chains. Rural infrastructure is of vital importance for agricultural production in Argentina given that many rural areas are isolated and low-populated. Therefore, rural roads, for example, are mainly used for the transportation of agricultural production to the ports.

Agri-environmental regulations and policies in Argentina are mostly legislated and implemented at the provincial level. For example, Santa Fe started a Good Agricultural Practices Programme in 2021, and Entre Ríos enacted a Law on Soil Conservation in 2018, which requires mandatory soil conservation for areas with soil degradation. In Buenos Aires, the Buenas Prácticas Agrícolas - Suelos Bonaerenses Programme, which started in 2020, provides training and supports extensive producers of crops to carry out crop rotation, practices reducing water and wind erosion, and plans to reduce pesticide use. Córdoba has a Law on Good Agricultural Practices that sets standards for sustainable agricultural production and compliance with the programme gives farmers access to lump-sum payments.

Since January 2020, the Argentina Against Hunger social programme has provided financial support for children, pregnant women and disabled people. Support is provided through an electronic food card that can be used in any grocery store. The food card is given to parents of children under the age of six who receive the Universal Allowance per Child (AUH), pregnant women who receive the Universal Pregnancy Allowance (AUE), and people with disabilities who receive the AUH. In 2023, the programme reached over 4.1 million beneficiaries (ANSES, 2024[3]).

The agricultural sector contributes 28% of GHG emissions in Argentina (Ministerio de Ambiente y Desarrollo Sostenible, 2021[4]). Argentina’s second NDC for the 2015 Paris Agreement on Climate Change was submitted in December 2020 and updated in October 2021. Argentina is committed to an economy-wide net emission limit of 349 MtCO₂eq by 2030 – equivalent to a decrease of 19% compared to the peak reached in 2007. In November 2022, Argentina submitted a long-term strategy (LTS) to the UNFCCC that includes a target to reach GHG neutrality by 2050.

Some of the tools that Argentina employs to reach this goal are expansion of renewable energies (at least 30% of the total energy matrix will have to be from renewable sources by 2030), lower subsidies for fossil fuels, expanded protected areas, and improved efficiency in agriculture, industry, transport and construction among others. In addition to its active commitment and participation in the primary multilateral competent fora on climate change, i.e. the UNFCCC, Argentina participates in other initiatives, such as the Global Bioenergy Partnership and the Global Research Alliance on Agricultural Greenhouse Gases (GRA) and the Global Methane Pledge initiative, among others. The National Institute of Agricultural Technology (INTA) plays an important role in research and innovation to reduce GHG emissions from agriculture and has a portfolio of research projects related to climate change mitigation and adaptation.

Innovation for sustainable productivity growth

Argentina is a competitive producer and exporter of agricultural products. The country has profited from the richness of its natural resources, but it has also adopted technologies, which have allowed it to increase productivity (Bisang, Anlló and Campi, 2008[5]). Agricultural productivity in Argentina grew at an average annual rate of 1.49% between 1961 to 2020, accounting for 75% of agricultural output growth (Morgan, Fuglie and Saini, 2023[6]). Between 1961 and 1990, the TFP grew at an annual rate of 2.32%, leading to positive output growth even as input use was shrinking. During this period, new technologies, particularly, new plant varieties, allowed more production without increasing resource use (Fuglie and Echeverria, 2024[7]). Between 1991 and 2020, TFP grew at an annual rate of 0.54%, well below the average productivity observed during the 1990s but following a trend experienced by many other countries during this period. In contrast, Argentina faces several environmental challenges, including low nutrient balances (especially, average nitrogen balance), high shares of agriculture in energy use and GHG emissions, which are well above the OECD average. In addition, Argentine agriculture is vulnerable to a wide variety of climate change impacts, including floods and droughts (World Bank, 2022[8]).

Technological change has contributed to increased input use, for example, direct sowing allowed the more intensive use of agricultural land bringing into production previously marginal pasture and uncultivated areas (Bisang, Anlló and Campi, 2008[5]; Morgan, Fuglie and Saini, 2023[6]). Argentina was also an early adopter of technologies such as genetically modified crop varieties that tolerate herbicides or have insect resistance, together with direct or no-till sowing.

Argentina has adopted the Bioeconomy as the main strategy for productive intensification that promotes biologically based value chains, enhancing the potential of available resources. Based on the generation of new scientific and technological knowledge and its application, the approach focuses on accelerating the use of methods and processes that ensure the traceability, quality, and sustainability of products and the creation of certifications and labels that allow food to position itself with added value for an increasingly demanding market.

Argentina’s agricultural production aims to achieve sustainable intensification, which is understood as a process of gradual improvement of the ecological efficiency of agricultural systems through innovation to promote greater productivity and profitability, with less environmental impact, to the maintenance and/or improvement of natural resources, reducing dependence on external inputs and favouring equity and social inclusion (Gutiérrez et al., 2020[9]).

Public research, development, and diffusion

An important factor contributing to sustainable productivity growth is the innovation system. Argentina has developed and maintained one of the most prominent public agricultural research systems in Latin America and the Caribbean (Echeverria, 2021[2]). There is evidence of a positive impact of public agricultural research expenditure on agricultural TFP growth in Argentina. At the same time, the private sector has made significant contributions to technological change and innovation in agriculture (Bisang, Anlló and Campi, 2013[10]). Through public-private co-ordination, comprehensive agricultural development policies, programmes and actions direct efforts to make progress towards sustainability, while contributing to the four dimensions of food security (availability, access, utilisation and stability), which implies increasing productivity.

Innovative approaches for adding value and sustainability

Argentina promotes the use of food certifications covering different topics and establishing diverse requirements such as quality standards and reduction of environmental impacts in production processes; safety and health of workers; health and nutritional issues of food; efficient use of energy or replacement with cleaner energy sources; environmental footprints (carbon and water); land use; and relations with the community and respect for human rights.

Argentina's Government, in collaboration with the Ministry of Economy and the Inter-American Development Bank (IDB), has formulated a Sustainable Financing Framework, which aims to facilitate the issuance of bonds or loans to finance programmes and projects with positive environmental and social impacts. Through this initiative, Argentina aims to direct resources towards investments that align with environmental objectives and promote competitiveness within a trajectory of sustainable development.

Fostering an enabling environment for sustainable productivity growth

Argentina has advanced in improving available information, advice and other tools for policy makers and producers to innovate for sustainable productivity growth. Actions to foster an enabling environment include:

• Updated map on the organic carbon reserve: the soil organic carbon (SOC) is crucial for sustainable agriculture as it serves as a primary indicator of soil quality and productivity potential. INTA used data collected from 5 400 soil samples processed between 2015 and 2022 for INTA updating a map of the SOC reserve in Argentine soils. Digital soil mapping techniques were used along with climatic, topographic, soil, and vegetation data to create a predictive model.

• Inventories of agricultural GHG emissions: updated every two years, this is crucial for assessing compliance with Argentina’s Nationally Determined Contribution under the Paris Agreement. The Ministry of Agriculture, Livestock, and Fisheries is involved in calculating emissions for Agriculture, Livestock, Forestry, and Other Land Uses. Efforts aim to enhance the accuracy of the sector’s emission estimates, with ongoing projects that include a comparative analysis of emission methodologies, development of local emission factors for Argentina's sheep farming, assessment of nitrous oxide emission research, and a proposal comparing estimated enteric fermentation emissions with field measurements by Argentine researchers.

• The National Management Plan for Forests with Integrated Livestock aims to promote sustainable use of native forests through forest-livestock management and is led by a National Technical Committee, which has set national guidelines as minimum requirements, adaptable by provincial jurisdictions. To ensure no compromise on ecosystem goods and services, plans must adhere to minimum criteria for Sustainable Management of Native Forests, maintaining exclusive areas for biodiversity conservation, genetic preservation, and wildlife protection while ensuring the forest’s vertical structure’s functionality. Livestock planning should align with system capabilities, incorporating efficient watering point designs, and all plan activities require periodic monitoring.

• The Cambio Rural Programme enables producers to access technical and organisational guidance, training, and exchange experiences with other producers to collectively advance in the transformation process of their production systems.

Fostering resilience for sustainable productivity growth

Argentina has been developing several tools to facing a shock and to foster subsequent recovery in front of the increasing extreme weather events, including:

• The National Agricultural Emergency Law 26.509 establishes a framework for preventing and mitigating agricultural emergencies.

• The programme Comprehensive Risk Management Programme in the Rural Agro-industrial System (GIRSAR) aims to strengthen the resilience of the agro-food system, reducing the vulnerability and exposure of producers to climate and market risks, especially among the most vulnerable actors. This risk management strategy focuses on climate and market risks and includes mitigation and emergency response actions.

• The Interinstitutional Protocol for Information Management was created in response to the threat of meteorological and agricultural droughts in Argentina.

• Projects within INTA that focus on designing a national monitoring system to mitigate land degradation.

Recent policy developments

Domestic policy developments in 2023-24

Argentina's domestic policy has been marked by drought conditions, which have persisted since 2019 and resulted in poor agricultural yields and production in several agricultural areas. In the agricultural season 2022-23, many crops suffered losses of more than 50%, although better results are expected for the season 2023-24. Simultaneously, the country showed macroeconomic instability with high inflation, exchange rate volatility, devaluation, and difficulties keeping the necessary foreign currency level, which can increase part the costs of agricultural inputs, reduce export competitiveness and farmers’ income, and increasing uncertainty, all affecting the development of agriculture. Several policy developments are driven by this context.

Production and marketing practices

In March 2023 Argentina adopted a measure to encourage feedlot production to ensure the supply of beef for domestic consumption, optimise its production systems and improve the profitability of the sector. This is in response to lower pasture capacity caused by drought conditions. In this framework, 95 beneficiaries were approved for a total amount of ARS 187 million (USD 633 000).

Similarly, to respond to an increase in the production costs (especially in soybean) of poultry production, the Productive Strengthening Programme for the Avian Sector was implemented in 2023 as an assistance tool to compensate avian producers for this increase. The programme granted 78 poultry producers a total of ARS 1.9 billion (USD 6.5 million). To be eligible for the funding a series of administrative requisites were established, including that producers must have sold chickens during the month of December 2022, when the increase in soybean price took place.1

The Economic Compensation Programme for Small and Medium Sheep Wool Producers in the Patagonian Region (LANAR) was created in 2023 to address low international prices of wool and the drought that affected the Patagonian region that year. It has a total investment of ARS 1.5 billion (USD 5 million) from the Export Increase Fund to finance programmes that stimulate the production and development of small and medium producers and regional economies.

Two programmes for the assistance of dairy producers (Impulso Tambero 1 and 2) in the context of low prices and drought were implemented in 2023, to financially compensate small and medium-sized dairy producers with the aim of increasing milk supply, optimising production systems and improving profitability. The assistance was provided during four consecutive months and consists of ARS 15 per litre for those producing less than 1 500 daily litres and ARS 10 for those producing between 1 501 and 5 000 daily litres.

Following the 2021 strategic plan for the organic sector by 2030, several actions took place in 2023, including a new law promoting organic production in the regional economies, events and contests to promote organic products, and a platform providing information about certified organic operators.

During 2023, 510 new products were awarded Reference Quality Labels for the food industry that promotes distinction and gives value to Argentine foods.2 To date, more than 3 500 products are marketed with this type of label.

Over the course of 2023, in the context of PROCAL that help differentiate products, facilitate access to new markets and contribute to improving competitiveness, three projects reached 350 beneficiary SMEs:

• 50 SMEs implemented quality protocols of the Argentine Foods, A Natural Choice label.

• 250 producers received support in developing technical and legal requirements to register 10 potential geographical indications or designations of origin.

• 50 other companies applied the Guide for Sustainable Agri-Food SMEs.

Training, responses to queries and information material were provided in 2023 to actors in the food sector to help them comply with the Law for the Promotion of Healthy Eating.3 The law made it mandatory to place one or more warning labels for each critical nutrient, as appropriate, as well as cautionary legends, for example, for sweeteners and caffeine. Technical assistance to the sector will continue in 2024 in terms of possibilities for reformulation or substitutes and in terms of food education.

Animal and plant health and safety

In February 2023, Argentina issued a sanitary emergency upon confirmation of the first case of the avian influenza virus in a wild bird. Also, the Ministry of Economy decided to provide economic assistance to affected commercial producers to improve the effectiveness of the disease containment measures.4

A SENASA resolution of 2023 provided an inventory of biopreparations protocols to formalise and provide guarantees for products already in use and whose production is beginning to increase in scale. Another resolution approved the possibility of registering bio-inputs in the National Registries of Plant Therapeutics, and of Fertilisers, Amendments, Substrates, Conditioners, Protectors and Raw Materials, for those interested in preparing, importing, exporting, having, fractioning, distributing or selling bio-inputs.

In 2023, the Beekeeping Strategic Roundtable was created within the SENASA Presidency Unit to establish priorities and articulate actions to be developed based on the sector's needs. Protecting bees and other pollinators is seen as essential to ensuring their significant contribution to solving problems related to the productivity of food production systems.

Bioeconomy and biotechnology

The Bioeconomy Action Plan in the agricultural sector was approved in 2023. The plan aims to guide public efforts to promote the development of the bioeconomy as a sustainable and complementary production model, based on the comprehensive use of biological resources and technologies for economic, social and territorial development. With a four-year horizon, the plan proposes long-term and medium-term results and the development of several activities and instruments, such as awareness raising, dissemination, diffusion of information and training; articulation mechanisms, agreements and protocols with different types of institutions; funding for bio-entrepreneurship; regulations and procedures; and international and regional relations and agreements.

The Argentine Federal Bioeconomy Network was formed in 2023 to diffuse bioeconomy-related public and private initiatives. It also provides for a space for discussion and exchange for stakeholders of the bioeconomy in Argentina, and to collaborate in the medium and long-term objectives of the Bioeconomy Action Plan.

In July 2023, the Bioenergy Municipalities Programme (Programa Municipios Bioenergéticos) was created to promote the use of a large part of the residual dry biomass that comes from residues or byproducts of agro-food activities, allowing production cycles to be closed. The beneficiaries of the programme can be municipalities, micro, small and medium enterprises, local co-operatives and public entities that dedicate their activities to the development of bioenergy. The programme will work on making surveys, analyses and evaluations of the local bioenergy sector, creating awareness, training and capacity building, and providing accompaniment to local projects.

In 2023, in the framework of the BIODESARROLLAR programme,5 a call for project financing was launched and received 130 project applications, of which 23 projects started receiving funding. Also, in 2023, Argentina created the National Registry of Bioproducers, the National Registry for Bioproducts, and the National Registry of Biomaterials. Additionally, Argentina awarded 21 labels for biomaterials, 8 certificates of interest, and 8 labels and 7 certifications for bioinputs.

Eight genetic modifications for plants were approved for commercialisation between January 2023 and March 2024 in Argentina: four herbicide- and insect-tolerant soybeans, three varieties of corn tolerant to herbicides and insects, and a cotton variety tolerant to herbicides and insects.6 Between the end of 2023 and the beginning of 2024, the commercialisation was authorised of the first six genetically modified yeasts with improved capacity to produce bioethanol from grain fermentation, and a vaccine that confers protection against Mycoplasma hyopneumoniae and porcine circovirus.

Risk management and rural infrastructure

Several ongoing projects under the GIRSAR advanced in 2023. In addition, 12 new projects were initiated across various provinces, including a sanitary strengthening project and an irrigation system in Neuquén, irrigation improvements in San Juan, a forest fire prevention project and irrigation system in Mendoza, modernisation efforts of the irrigation systems in Río Negro, fire control and prevention in Córdoba, rural roads in Entre Ríos. Evaluations are underway for an Agro-Environmental Management project in Misiones and a climate risk management project in Rio Negro, with estimated costs of USD 8.4 million and USD 7.9 million, respectively.

Rural development, family farms and indigenous agriculture

Several activities were developed during 2023, including the creation of alliances, training activities, approval of projects in different provinces, and administrative closure in some cases, within the framework provided by multiple projects, aiming to improve rural development. The project En nuestras manos aims to reduce gender gaps in rural areas and assist agricultural producers in the context of the COVID-19 crisis, the Programme for the Promotion of Resilient and Sustainable Agri-food Systems for Family Farming (PROSAF) supports sustainable, inclusive production and marketing systems for peasants and family farmers, the project of Socio-Economic Inclusion in Rural Areas (PISEAR) promotes the socio-economic inclusion of rural families in poverty, through improvements in their living and production conditions.

The Goat Chain Development Programme (PRODECCA) aims to improve the income of goat-producing families in Indigenous Peasant Family Agriculture. It has reached over 2 500 beneficiary families in 2023 and developed activities in collaboration with the INTA.

The Support Programme for Small Wine Producers in Argentina (PROVIAR II) started in 2023 to support the social, economic, and environmental sustainability of Argentine viticulture. Several projects have been approved within this programme with financial support of USD 8 million for small producers in several provinces.

Trade policy developments in 2023-24

In December 2023, the new administration abolished the faculties of the Ministry of Finance to design and implement export taxes and adjust their rates by decree. New prohibitions or restrictions on exports or imports for economic reasons can only be carried out through the legislative process.

In November 2023, the Export Increase Programme was extended for the last time. This programme was launched in September 2022 to promote soybean sales and strengthen international currency reserves. Exporters of soybeans, flour, oil, and biodiesel made with soybean oil, agreed to enter foreign currency into the country at a preferential exchange rate, higher than the official one, which implies that they receive a higher price in ARS.7

In July 2023, Argentina increased the equilibrium volumes of exports (VEE) for the maize campaign of 2022‑23 from 20 to 26 tonnes for exports.8 Since January 2021, maize and wheat exporters have been required to comply with administrative export permits that are granted by the Ministry of Agriculture depending on the quantity available and the price in the domestic market. In December 2021, the Ministry of Agriculture, Livestock, and Fisheries established a framework regulating exports based on VEE and limiting export permits. The ministry publishes the VEE for maize and wheat based on the government’s projection of production, domestic consumption and stocks. Exporters can request export declarations (DJVE) for up to 90% of the VEE. Once this limit is reached, additional export permits will only be granted within 30 days of the expected exporting date. In December 2023, the new administration dismantled these restrictions.

In 2023, the Ministry of Agriculture, Livestock and Fisheries, approved the procedure for submitting applications for commercial authorisation of a genetically modified organism (GMO) for agro-food use, within the framework of the Memorandum of Understanding between the Ministry of Science, Technology and Innovations of the Federative Republic of Brazil and the Ministry of Economy of the Argentine Republic for co-operation in biosafety regulations of modern biotechnology products signed in 2022.

Policy context

Key economic and agricultural statistics

Argentina is an upper middle-income country with a dynamic agricultural sector that has been making a growing contribution to the GDP, from 4.7% of the GDP in 2000 to 6.6% in 2022. In contrast, agriculture’s share of employment decreased from 11.9% in 2000 to 7.2% in 2022. The country is one of the world’s largest agricultural exporters, and agro-food represented 41.5% of total exports in 2000, and 57.2% in 2022. In contrast, agro-food imports represented only 5.4% of total imports in 2000 and 6.1% in 2022. Argentina has abundant agricultural land representing 4% of the total agricultural area of all countries covered in this report, with a large share of this area composed of pastureland.

Table 3.2. Argentina: Contextual indicators

	Argentina		International comparison
	2000*	2022*	2000*	2022*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	428	1 225	1.1%	0.9%
Population (million)	37	46	0.9%	0.9%
Land area (thousand km2)	2 737	2 737	3.4%	3.3%
Agricultural area (AA) (thousand ha)	128 510	117 958	4.3%	4.0%
			All countries1
Population density (inhabitants/km2)	13	16	52	64
GDP per capita (USD in PPPs)	11 543	26 505	9 363	25 965
Trade as % of GDP	9.1	13.4	12.3	16.6
Agriculture in the economy			All countries1
Agriculture in GDP (%)	4.7	6.6	2.9	3.8
Agriculture share in employment (%)	11.9	7.2	-	-
Agro-food exports (% of total exports)	41.5	57.2	6.4	8.0
Agro-food imports (% of total imports)	5.4	6.1	5.8	6.9
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	57	68	-	-
Livestock in total agricultural production (%)	43	32	-	-
Share of arable land in AA (%)	22	36	32	34

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

The Argentine economy began to stall when the peso came under pressure in April 2018. The value of the peso vis-à-vis the USD was reduced by 40% in 2018, and by 70% in the period 2018-2021, and the economy plunged into recession and inducing annual inflation rates above 40%. Inflation has been escalating, with an annual rate of 94.8% in 2022 and the year 2023 ending with an annual inflation rate of 211.4%. Due to exchange rate controls, there exist exchange market rates that have been increasingly diverging from the official rate. Adversely affected by COVID-19, GDP declined by 9.9% in 2020, increased by 10.7% in 2021 and decreased by almost 5% in 2022 and 1.8% in 2023.

Argentina runs a significant agro-food trade surplus having exceeded USD 30 billion for most of the past decade and USD 45 billion in 2022. Most of agro-food exports (82%) are primary or processed products used as inputs in downstream industries abroad, whereas the much smaller bundle of agro-food imports is mostly composed of primary products for use by industry (51%).

Argentine agricultural production has grown at an annual rate of 2.3% between 2012 and 2021, above the world average of 1.9%. Within this total growth, 2.5% was due to an increased use of intermediate inputs, while only a small portion of production growth (0.2%) was due to Total Factor Productivity (TFP) growth, that is, innovations and technical improvements in the way resources are used in production. With this, the TFP growth was well below the world average of 1.1%.

Agricultural nutrient balances in Argentina, particularly its average nitrogen balance, are comparatively low, albeit increasing. The shares of agriculture in energy use and in GHG emissions are, at 7% and 32.3% respectively in 2022, well above the OECD average, with the high emissions reflecting the large number of ruminants. Notably, the emissions share is well above the sector’s contribution to the economy. With 73.9% of total water abstractions, agriculture also is a major water user.

Table 3.3. Argentina: Productivity and environmental indicators

	Argentina		International comparison
	1991-2000	2012-2021	1991-2000	2012-2021
			World
TFP annual growth rate (%)	1.7%	0.2%	1.7%	1.1%
			OECD average
Environmental indicators	2000*	2022*	2000*	2022*
Nitrogen balance, kg/ha	-1.4	7.2	32.1	28.2
Phosphorus balance, kg/ha	1.7	2.5	3.3	2.3
Agriculture share of total energy use (%)	5.8	7.0	1.7	2.0
Agriculture share of GHG emissions (%)	40.9	32.3	8.7	10.1
Share of irrigated land in AA (%)	1.5	0.9	-	-
Share of agriculture in water abstractions (%)	70.7	73.9	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Argentina has a history of macroeconomic instability and policy volatility, switching from open markets to import substitution in a way that has led to overall poor long-term economic performance (OECD, 2019[1]). The main exception has been the agricultural sector which, despite policy impediments, has innovated and grown. Driven by higher international agricultural prices, Argentine agriculture – in particular, in the extended Pampas region – has experienced a major structural transformation. This has been reflected in changing land use, the emergence of soybean as a major commodity, and diversified and growing export markets, especially toward Asia. However, outside of the Pampas, other crops like tobacco, cotton and fruits and vegetables have been less successful.

Argentina liberalised trade in the late 1970s and explored ways to increase trade with its neighbours and other economies from the second half of the 1980s. In the 1990s, the Argentine economy became more integrated in international trade, including the liberalisation of the agri-food sector, through the creation of MERCOSUR in 1991 and the 1994 WTO Agreement. However, after the financial crisis in 2001, Argentina reverted to increasing tariffs, establishing price controls for food products, and re-introducing export taxes on agricultural products such as soybeans to raise revenue and reduce basic food prices. Further export restrictions in the form of quotas for wheat, maize, milk, and beef were imposed in 2008. Between 2007 and 2011, a consumer price subsidy was implemented. The National Office of Agricultural Commercial Control (ONCCA) agency provided payments to processors purchasing wheat, maize, soybeans, and sunflower products from the local market.

In December 2015, the government began to gradually re-open markets again: it reduced export taxes on soybeans and soybean oil, eliminated export taxes on all other agricultural products, removed all export quotas, and free-floated the exchange rate of the Argentine peso to other currencies. But following the 2018-19 depreciation of the local currency and the subsequent economic recession, export taxes were re-established not only for agri-food products but for all goods by the government that had reduced or eliminated them. By early 2020, agricultural-specific export taxes were re-instated for most products in early 2020. Simultaneously, the exchange-rate controls introduced in the beginning of 2020 resulted in a widening gap between the official exchange rate and other market exchange rates, which has been widening until the end of 2023.

Table 3.4. Argentina: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1990	Alternate free trade and import substitution policies	Price interventions on main agricultural products, mandatory public stockholding, export taxes on agricultural trade, tariffs on imports of agricultural inputs such as fertiliser, low levels of investment in private agricultural R&D and infrastructure in general. Several attempts to liberalise trade. Creation of agricultural R&D and extension services institute INTA (1956); private institutions such as AACREA (1960) and AAPRESID (1989) created to provide services to farmers.
1991-2001	Shifts to open the economy	Dismantling stockholding and price-setting public institutions, reduction of import and export tariffs, free trade agreements (Mercosur and WTO). Price stabilisation, reduction of barriers to trade, privatisation and deregulation of markets Dissolution of National Commercial Boards (1991). Creation of animal and plant health and food safety SENASA (1996). Creation of the seed regulatory institution INASE (1991).
2002-2015	Return to a closed economy	Implementation of export taxes, import restrictions, value chains subject to regulations as export quotas and price controls at the retail level. The National Office of Agricultural Commercial Control (ONCCA) dismantled (2011).
2016-2017	Gradual shifts to open the economy	Elimination of export taxes for all agricultural commodities, except reduced taxes on soybean exports. Elimination and reforms to the Register of Export Operations ROEs (2015). Federal Agricultural Council (CFA) reformed (2017).
2018-Present	Reintroduction of export taxes	Export taxes established for all exports including agriculture in response to the economic crisis of 2018. Reintroduction of specific taxes on agricultural products and exchange rate controls since 2019. Since December 2023, changes to export taxes are expected to be done by Law and cannot be done by decree. However, export taxes in place until then continue and have not been modified.

Prior to the economic crisis of 2001, producer support fluctuated around zero. With the reintroduction of export taxes and other trade restrictions after the 2001-02 financial crisis, the PSE turned negative due to substantial negative market price support and absence of any significant budgetary support to farmers. Negative producer support peaked in 2014, reaching ‑37.7% of gross farm receipts. Lower export taxes in 2015 reduced negative support. Budgetary support to farmers remained limited and mainly in the form of subsidies for tobacco. Around 60% of total expenditures on agriculture in the last ten years financed general services to the sector. From 2007 to 2010, Argentina provided subsidies to food processors (primary consumers), to compensate for high prices of agricultural products.

References

[3] ANSES (2024), Informe de Estadísticas de la Seguridad Social. III Trimestre 2023, ANSES, https://www.anses.gob.ar/sites/default/files/archivo/2024-02/Informe%20de%20Estad%C3%ADsticas%20III%20Trimestre%202023.pdf.

[10] Bisang, R., G. Anlló and M. Campi (2013), Claves para repensar el agro argentino, Buenos Aires: Eudeba.

[5] Bisang, R., G. Anlló and M. Campi (2008), “Una revolución (no tan) silenciosa. Claves para repensar el agro en Argentina”, Desarrollo Economico, Vol. 48/190-191.

[2] Echeverria, R. (2021), A Note on Agricultural Productivity in Latin America and the Caribbean: A Call to Increase Investment in Innovation, https://globalagriculturalproductivity.org/a-note-on-agricultural-productivity-in-latin-america-and-the-caribbean-a-call-to-increase-investment-in-innovation/.

[7] Fuglie, K. and R. Echeverria (2024), “The economic impact of CGIAR-related crop technologies on agricultural productivity in developing countries, 1961–2020”, World Development, Vol. 176, p. 106523, https://doi.org/10.1016/j.worlddev.2023.106523.

[9] Gutiérrez, N. et al. (2020), Políticas públicas e institucionalidad para la intensificación sostenible en los países del Cono Sur, IICA, PROCISUR, https://repositorio.inta.gob.ar/handle/20.500.12123/9034.

[4] Ministerio de Ambiente y Desarrollo Sostenible (2021), Inventario Nacional de Gases de Efecto Invernadero, https://inventariogei.ambiente.gob.ar/files/Booklet_INGEI-2022_entero.pdf (accessed on  March 2023).

[6] Morgan, S., K. Fuglie and E. Saini (2023), Crecimiento de la PTF en la Agricultura en Argentina: Inversiones en Investigación e Innovación, https://globalagriculturalproductivity.org/wp-content/uploads/2023/11/2023-GAP-Report-Argentina-ES.docx.

[1] OECD (2019), Agricultural Policies in Argentina, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264311695-en.

[8] World Bank (2022), Informe sobre clima y desarrollo del país Argentina, Grupo Banco Mundial, https://openknowledge.worldbank.org/server/api/core/bitstreams/2d91534e-e769-590b-b32c-c6b9cc2363d5/content.

Notes

← 1.  See https://www.magyp.gob.ar/aviar/_pdf/Res-Mecon-100-2023.pdf

← 2.  See https://alimentosargentinos.magyp.gob.ar/HomeAlimentos/sello/beneficios.php

← 3.  Law 27 642, popularly known also as the “front nutritional labelling law”, was sanctioned in November 2021 in Argentina, and regulated in 2022 (Decree 151/2022).

← 4.  See http://servicios.infoleg.gob.ar/infolegInternet/anexos/380000-384999/383889/norma.htm

← 5.  The programme BIODESARROLLAR launched in 2022 by the Ministry of Economy’s Secretariat of Agriculture, Livestock and Fisheries aims to promote the development, innovation, adoption, and production of bioproducts by micro, small, and medium-sized enterprises, co-operatives, and public research entities.

← 6.  See https://www.argentina.gob.ar/agricultura/alimentos-y-bioeconomia/ogm-vegetal-eventos-con-autorizacion-comercial

← 7.  Exchange-rate controls in place since 2019 have resulted in a widening gap between the official exchange rate and other targeted market exchange rates. Agricultural exports are settled at the official exchange rate, which is lower than others, reducing the price received by exporting farmers in the local currency (ARS).

← 8.  See https://www.boletinoficial.gob.ar/detalleAviso/primera/290888/20230725