Argentina-Export tax on Soy.

ARGENTINA.

SOY TAX.

The government of Argentina on Tuesday, denied rumors that were suggesting they were going to lower the export duties of soy.Farm leader Eduardo Buzzi, said that a 5% cut of the soy tax is essential and that "were are worse off than in the 90’s, Referring to the farming community.

The dramatic drop in the price of soy, from US$600 per ton to US$300 per ton in recent weeks, has forced the government to review the tax policies.The government entered into a direct conflict with the farmers, over export taxes in March of 2008, resulting in a 4 month strike and blockade..The leader of the FAA farmers association, went on to say that the peso should be lowered to 5.50 pesos to the dollar.

Referring to the new financial aid to the car industry of one billion dollars, the farm leader said, " In Argentina we have more workers in the agricultural machinery industry than in car factories, the government is more concerned about their friends selling cars than resolving the problems of millions of Argentines living below the poverty line".

Things have been quiet on the farming front for the last two weeks, everyone was more concerned with the global financial crisis.