August 21, 2009

Argentina's Senate approved an emergency farm bill Thursday (Aug 20) that will provide at least 500 million pesos (US$130 million) in drought relief funds.

 

The House approved the bill earlier this month.

 

The bill will grant tax relief to farmers and ranchers in designated areas of Tierra del Fuego, Buenos Aires, Santa Fe, Catamarca, Salta, Neuquen, Mendoza and Santiago del Estero provinces, the Senate said in a press release.

 

A severe drought battered Argentine crops last season, causing nationwide grain production to fall by over a third.

 

The bill provides tax benefits and suspends export taxes for farmers from districts declared "disaster zones" and cuts the export taxes in half for farmers from "emergency zones."