Since march 2008 the four Farmers Associations, covering all farmers size across the country, jointly started at protest on export taxes and goverment faro policy, which become in a longestnational strike (or lockout) strongly affecting domestic and export market of grains, oilseeds andcrushing pace.On July 2008 a controvertial law No 125 on agri export taxes was submit to congress.
The goverment got it first lost then and derogue the law but continue actively increase its participationon grain commerce throughout a long list of resolutions to control domestic grain prices including exportquota for wheat and corn, which include strong limitations on sale registrations which destroyed future grainand oilseed domestic market and future cash transactions.
Dry weather during last campaign and the strong drought suffered by the present one put several small farmers in finantial difficulties after supporting crop losses.
Marginal agriland was abandoned due negative margin and adverse weather, focusing sowing on theonly profitable alternative: soybeans.
Wheat area became the lowest ever registered in Argentina, facing the treath of potential wheat import during next year.
Last Congress Election took goverment majority away which imply this matter to become thefirst to be discussed by the new Congress as from end of the year.
Goverment decided then to re-star negotiations with the 4 Farmers Associations next friday 31st, where it was included the resisted discussion on export taxes. Domestic market has been almost paralized since such election on farmers expectations of exporttaxes reduction which would revalue their unsold stocks.
Attached it is detailed both parties proposals to be discussed during such meeting. It isinteresting to see that Farmers Associations wanted the inclusion of limitations to ONNCA,(goverment organism) which manage the export quota and domestic grain and cattle marketcontrol, strongly resisted by most of the commercial Chain.
farmer-claim-270709.pdf
