January 28, 2009
 
Argentina farmers slam government drought aid
 

Argentina's farmers are less than appreciative of the government's drought aid by calling it a 'joke'.
 
Argentine President Cristina Fernandez on Monday (Jan 26) announced the aid, which allows farmers to defer some tax payments for up to a year. Fernandez also said farmers would temporarily be relieved of the obligation to pay transport fees for grains and oilseeds.
 
The move is expected to help farmers save up to ARS200 million (US$57.5 million), said the state news agency Telam. Government officials lauded the move, saying it would help the drought-hit farmers immensely.
 
However, Eduardo Buzzi, president of the influential Argentine Agrarian Federation (FAA), blasted the effort by saying that the measures were far from satisfaction and that they were meant to persecute the federation.
 
Buzzi accused Fernandez of trying to sanction the FAA for opposing certain economic policies, and that the government was gravely underestimating the drought damage.
 
"We can see the abyss and it's just around the corner. Many producers are disappearing. The graveness of the situation is not being considered by the government'' Buzzi said.
 
Mario Llambias, head of Argentina's Rural Confederation (CRA), backs Buzzi.
 
"The situation is critical and we're not going to emerge from it with these measures. The government's reaction is inadequate to the circumstances,'' said Llambias.
 
Argentina's drought has threatened to undermine farm exports to the tune of US$5 billion, the Buenos Aires Cereals Exchange warned.
 
Llambias called on the government to lift trade controls on grains, oilseeds and beef, which farm leaders claimed to have choked profits.
 
Last year, farmers clashed with the government over high export taxes and the on-and-off demonstrations lasted for several months.
 
Buzzi said farmers and ranchers could protest if the situation worsens.
 
"This will be determined by the consensus of our members," he said.