Argentina-Chaos on the farms.

ARGENTINA.

STATE OF EMERGENCY ON FARMS.

President Christina Fernandez de Kirchner, declared a state of agriculture emergency on Monday night in Buenos Aires as the country is blighted by the worse drought in history, which has affected crops and cattle production across the country.

The presidential decree exempts farmers from paying income tax and asset taxes as well as cuts in the cost of transport and fuel.

During a nationwide televised address to the nation from her country home in Olivos, the president announced a series of housing plans in the areas worse hit by the drought.

These new measures for farmers stay in place until January 2010 no matter what happens to the weather. The President said "We want to make this effort to help those farmer hit by the crisis".

In recent weeks the government earmarked US$70 million in rescue packages for the rural sector. The president went on to say "These are very difficult times in all the world and everyone’s effort is required now".

The government has assured Brazil that efforts will be made to guarantee wheat exports to them, as Brazil is the largest buyer of wheat.

The transport industry is also suffering with work cut down by 50% as the farmers are at a standstill.

The farm leaders are not happy with the package, as one government insider put it "If the rains came today the farmers would be demanding umbrella’s".