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Argentina Narrows Farm Input Price Gap, but Structural Costs Still Weigh on Grain Competitiveness

The study concludes producers’ main handicap is on the income side because export taxes depress effective prices.

Overview

  • An Ieral/Fundación Mediterránea survey using Dec 2025–Jan 2026 prices compares Argentina with Brazil, Paraguay, Uruguay and the United States to gauge grain-production cost competitiveness.
  • Prices improved in several inputs: fertilizers are roughly 1.6% to 12.9% below the regional average, selected herbicides are up to 3.7% cheaper, the surveyed fungicide is 13% lower, and combine harvesters are 8.2% cheaper.
  • Key structural costs remain elevated: diesel (gasoil grade 2) is about 21.4% above the surveyed average at roughly US$1.30 per liter, and freight for a 400 km haul runs higher than in Brazil and Paraguay.
  • Tractors cost about 28.5% more than the average, with a 200 HP model priced around US$243,439 in Argentina versus about US$172,989 in Brazil and US$178,000 in Paraguay.
  • In the cross-country breakdown, Brazil shows lower prices than Argentina in 54% of items and Paraguay in 62%, and FADA estimates taxes absorb 56.3% of agricultural rent, reinforcing the income-side disadvantage.