The war in the Middle East has led to an increase in key inputs such as urea and fuel, reduced profitability, and increased the tax burden. Wheat has been the most affected. These results show a strong impact from the conflict and the blockade of the Strait of Hormuz, through which 50% of the world's urea—a key fertilizer for agricultural production, especially for wheat—passes. The main concern for the agricultural sector is the rise in costs, such as fuel, which impacts freight rates, as well as updates to provincial taxes and lower profitability. The FADA Index for March 2026 shows that 62.5% of income goes to taxes, 6.1 percentage points more than in December 2025. This means that for every 100 pesos generated per hectare of farmland, 62.5 pesos are destined for national, provincial, and municipal taxes. While the national average is 62.5%, Córdoba records 60.2%, Buenos Aires 60.4%, Santa Fe 57%, La Pampa 60.4%, Entre Ríos 67.6%, and San Luis 55.7%. The increase in the Index is a combination of two things: rising production costs, which shrink agricultural income, and updates to provincial taxes and municipal rates, which mean more pesos to pay per hectare. Thus, when income shrinks, taxes represent a larger portion. Analysis by crop shows very different realities, but with a common denominator: decreased profitability. In soybeans, the state participates with 61.6% of the income, while in corn the indicator reaches 56.8%. In sunflower, the percentage climbs to 80.3%, reflecting a more complicated situation. However, the most critical data is that of wheat, which reaches 104.4%. Today, to acquire one ton of urea, 3.9 tons of corn or 3.8 tons of wheat are needed, a less favorable ratio than a year ago. All of this creates a scenario where producing requires more and more resources, reducing the producer's margins.
