Argentina-Farmers agreement becomes law.

ARGENTINA-FARMERS AGREEMENTS COME INTO EFFECT.

A series of measures agreed last week between the government and the four main farming groups, came into effect on Tuesday and were published in the government Official Gazette.

The resolutions include the re-instatement of compensations for meat producers, subsidies for grain producers and compensation for the difference between export price and domestic market price for wheat.

There is also the removal of export duties on all dairy produce exported.

The government justified these measures in a statement claiming that this was a "Special Situation", owing to the global economic recession.

The Department of Agriculture farm marketing watch dog ONCCA, has raised the beef export quota to 610,000 tons for the year 2009 and opened a new category for canned meat.

The canned meat industry is going to be essential this year if the Russian manufacturing meat market does not re-kindle itself.

There have also been grant approved for farmers who have suffered losses during the recent drought, which was the first of its king in the history of Argentina.

However the government has ruled out any reduction in the export tax of soy, failure to do this could in fact be the undoing of the Kirchner government, as they have already suffered humiliating defeats in recent council elections.