Argentina-Talks of nationalization of grain.

ARGENTINA-REPORTS OF NATIONALIZATION.

Argentina is seriously considering the nationalization of all farm trade, a source at the Production Ministry told Dow Jones Newswires on Friday.

The government would take over the purchase of all grains and cattle produced in the country and then resell the goods for export and domestic sale under a plan being studied "at the highest levels" of government, the source said.

The potential plan comes in the midst of tense relations between farm groups and the government. Farmers are demanding a lowering of export taxes on grains and a loosening of controls over exports and farm trade.

Government officials have said that they will not lower the taxes at this point.

The government and farmers are set to meet for a second round of negotiations Tuesday.