- Agriculture contributes over 5% to Argentina's GDP but employs only 0.5% of the population, making Argentina one of the largest agricultural exporters in the world. Agricultural production grew 2% annually between 2006 and 2015. - Main agricultural policy instruments in Argentina include negative price supports through taxation of producers, export restrictions and taxes, provision of services like agricultural innovation and assistance, and limited input subsidies. - Policy recommendations for Argentina include gradually reducing biases against agriculture, focusing innovation efforts on providing public goods, improving monitoring systems to reduce pesticide use and design better policies, and balancing the long-term goal of phasing out export taxes with the short-term need to raise revenues.

1. OECDAgricultural Policy
Recommendations forArgentina
A. Farhad Hedayat
25.10.2019

2. Your Logo or Name Here 2
• Agriculture contributes to more than
5% of GDP,
• Only 0.5% of employment
• One of the world’s largest
agricultural exporters
• 2% Annual Increase in agricultural
production between 2006 and 2015
• Per Capita GDP over 20,000$
Agriculture inArgentina

3. Your Logo or Name Here
Main Policy Instruments
 Producers of main agricultural products in
Argentina are implicitly taxed through
negative price support.
 Export restrictions
 Export taxes on agricultural produce
 Provision of general services, i.e.
agricultural knowledge and innovation
system
 Provision of technical assistance.
 Provision of a very limited input subsidies,
mostly in the form of implicit interest rate
subsidies through preferential credit.
 Policy of Investing in large agricultural
irrigation infrastructure
3

4. Your Logo or Name Here
Important Highlight
There are almost no other direct payments to producers in Argentina. Limited amounts are
provided as disaster assistance in response to extreme weather events, mainly droughts.
4
Depreciation
of Peso
Economic
Recession in
2018
Raising
Revenue
Reasons

5. Your Logo or Name Here
Policy Recommendations
5
The government should keep its long-term direction of gradually reversing this bias, moving
towards a more neutral, stable, predictable and targeted policy package.
Public policies on innovation should focus on the provision of public goods in areas where
the private sector has difficulties.
Pesticide use reduction, crop rotation and forest conservation, will require improving
monitoring and information systems for better policy design.
In the current environment, it will be crucial to find the right balance between the long-term
objective of phasing out export taxes and the short term need to raise fiscal revenues.
Development of poor tobacco producing areas through investment on human and physical capital.
Argentinian agricultural innovation system needs to develop systematic monitoring of efforts
and results in R&D and innovation, and to define and implement strategic priorities.

6. Thank You