BUENOS AIRES: Argentine farm exports totalled about $19.7 billion in 2023, data from the country’s major oilseeds crushing and export body showed on Tuesday, a 51% drop from the previous year, largely because bad weather reduced agricultural output.

Argentina is a major global exporter of processed soybeans, corn and wheat, but a major drought hit its farms in 2022-2023, adding to economic weakness. December data from industry body CIARA-CEC showed in a monthly report that companies in the sector exported a total $1.25 billion, down two thirds from the same period a year earlier. Farm exports represent a major source of US dollar reserves for the central bank and are essential to finance imports and pay down government debt.

Libertarian President Javier Milei last month sent Congress a bill proposing hiking taxes levied on soymeal and soyoil exports to 33% from their current level of 31%, days after also laying out plans to raise corn and wheat export taxes to 15% from 13%.