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Crop Subsidies In Foreign Countries


From the drop-down boxes below, select a country/crop combination to find detailed information about subsidies and trade policies used.  These summaries are as accurate as possible at publication and are updated every two years (current version accurate as of 2009).  These are the sources  for these data.  If you are aware of errors, please notify us at Darren.Hudson@ttu.edu.  The next update will be completed in April 2011.


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Argentina
Historically, the agricultural sector in Argentina has received little direct government support. Policies in the export-oriented agricultural sector were shaped by an unstable macroeconomic environment, trade restrictions on agricultural inputs and outputs, and government policies favoring industrial development and cheap supply of food to urban consumers. In 1990, Argentina enacted economic reforms that began to stabilize the economy and created an environment more favorable to agricultural investment, production, and exports. However, the government still collects export taxes on grains, cotton, and other agricultural products, dependent on their level of processing.



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Corn
·         Policies for wheat and corn are primarily aimed at maintaining sufficient domestic supplies at reduced prices through (a) domestic subsidies, (b) export taxes, and (c) controls on export licenses. There is also a subsidy program in place for small and medium producers that allow for a rebate of export taxes paid.
·         Wheat and corn mills are given a monthly subsidy for the volume of wheat sold in the domestic market (subject to a maximum volume per mill established by the Group of Coordination and Evaluation of Subsidies for Internal Commerce (USESCI), formerly the National Office of Agricultural Trade Control (ONCCA)). The subsidy is the value per metric ton based on the difference between the theoretical FAS price (TFP) published by the Ministry of Agriculture (or price supposedly paid by millers to corn and wheat farmers) and the “supply price” published by the Secretariat of Domestic Trade.
·         Small- and medium-sized farmers (up to 800 MT of wheat and up to 1240 MT of corn production levels) are rebated the difference between the FOB official price and the TFP published daily by the Ministry of Agriculture.
·         The USESCI issues and regulates export licenses (ROEs) in the grain and beef sectors. Exporters have 45 days to from the date of the export license request to notify the Argentine Customs Office the destination of the shipment. If within 5 days after the license is approved, the exporter pays the export tax, the destination notification period is extended to 365 days.
·         The current export taxes on corn and wheat are 20% and 23%, respectively. Flour carries a 13% export tax while flour sub-products (pasta and couscous) are exacted a 5% export tax.
·         The current import tariff on wheat and corn are 10% and 8%, respectively. The import tariff on flour is 12% and 16% for its sub-products.