Farmers in Argentina have said they will halt sales of agricultural produce for nine days from tomorrow in response to land tax hikes.

Growers in Buenos Aires province, the country’s principal soy bean growing region, plan to halt sales of livestock, maize and soy after the local congress passed a bill increasing tax on land. The farmers’ strike action could affect Argentina’s soy crush business and oversees sales; the country is a major world exporter.

Although government representatives say the bill is long overdue, farmers argue the tax increases will put some producers out of business; rural and farming groups in Argentina have put their support behind the farmers, who demonstrated in Buenos Aires yesterday as the bill was passed.

Argentina is the world’s leading exporter of soy oil and meal, and second largest exporter of maize. The lucrative biodiesel market has pushed up land prices in the country’s soy growing regions.

Although the government is insistent it must raise taxes in these regions, as land valuations have not been reprised in over fifty years, officials have said farmers who have been struck by drought or flooding will be offered a reprieve from higher taxes.

However, despite support for the measures coming from across government, including from the country’s farming minister, the farmers say they will keep up their strike action until 10th June.

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