April 17, 2010

Argentine farmers plan May rally against soy tax, beef intervention

Argentine farmers are gearing up for more conflict with the government, planning a protest rally on May 3 and considering a stop to soy sales.

Farmers are calling for the government to lower the 35% export tax on soy and the elimination of export tax on all other grains. They are also incensed by government limits on beef exports designed to increase local supply and bring down prices.

Despite calls for an immediate stop to soy sales by the Agrarian Federation, which groups small-scale farmers, the other groups decided to put off a decision on a strike until after the bulk of the harvest is complete.

The soy harvest is in full swing right now, with most farmers busy getting the crop in from the fields. Soy is Argentina's leading crop by far and the country's largest single export.

With wheat planting set to start in a few weeks, farm groups are focusing on pressing the government for measures to stimulate production of the cereal, according to the Rural Confederation on Friday (Apr 16).

The May 3 protest will be the second of the year, but farm groups have vowed to hold back from the crippling roadblocks that sporadically shut down transport over a four-month period in 2008.

Farmers were emboldened after those strikes forced President Cristina Fernandez to revoke a tax increase on soy exports, and they continue to chafe under heavy intervention in grain and beef trade designed to keep down domestic food prices.