Argentine farmers who began strike action last week, following the introduction of higher land taxes in Buenos Aires province, have extend their protest. The farmers last week brought a halt to sales of livestock, maize and soy beans after the land tax bill was passed by the regional congress.

Although the local government claims land in the region, one of Argentina’s major agricultural enclaves, has not been revaluated in over fifty years and taxes no longer reflect its true value, farmers have said the proposed tax hike risks putting many of their compatriots out of business, particularly as it comes following a challenging spring for growers.   

The strike began on Saturday, with a planned duration of nine days; however, agricultural unions yesterday announced they plan to extend the protest to other regions. The action has caused concern amongst exporters working in Argentina, the world’s second largest maize exporter and third exporter of soybeans.

The country is a major supplier of soyoil for cooking, meal for animal feed and, increasingly, the biofuels industry. This year’s crop has been hit by extreme weather, beginning with a drought, which gave way to torrential rain and flooding last month.

Although farmers affected by this year’s weather events were exempted from the tax rise, the strike has popular support and the backing of Argentina’s four main farm groups; its effects had begun to be felt in Buenos Aires province by Monday.

The extended strike will be joined by growers rankled by government policies across the country, including curbs on maize and wheat production, which they feel have affected profitability; planned to begin today and last until Wednesday 13th June, the strike has already caused rises in soybean futures on commodities markets. The growing protest is a potential cause for concern for the Argentine government; strike actions which snowballed four years ago in Argentina also began as farm protests.   

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