MercoPress. South Atlantic News Agency

Farmers continue conflict; Kirchners organize rally

President Fernandez has said the tax rises are necessary

Argentine striking farmers confirmed on Monday that their massive protest will continue until next Wednesday following the announcement of government measures and a speech from President Cristina Fernandez de Kirchner.

Farmers said measures advanced by Economy minister Martin Lousteau, which include compensations for small and medium size farms, plus freight subsidies and other benefits were not clear enough, or in line with the necessary dialogue spirit needed to end the 19 days conflict which is causing food shortages in Argentina's main cities. Farmers are protesting a system of sliding export taxes on grains and oil seeds and bans on exports which according to the Kirchner administration are essential to ensure food prices are accessible for domestic consumers. Lousteau centered his speech in soy beans, supposedly the most profitable of oil seeds which is taking over land from other crops and farm activities arguing that 80% of Argentina's soybean production is controlled by 20% of farmers, while 80% of them harvest the other 20%. Furthermore he said that of the 20%, actually 2.2% control almost 50% of all soy production. Therefore the need for a windfall export tax (44%) to enforce the government's income redistribution policy. Lousteau also announced the reopening of wheat exports and the creation of a specific Small farmers' promotion ministry. However the four farmers' organizations coincided that the announcements on first sight "don't go to the heart of the conflict". Farmers want the government to back step to March 11 when it announced the sliding export taxes, and from then on together work out a fairer taxing system. Although they admitted that some of the measures could represent a relief for small farmers they are "too vague and lack precision". "This is not what the camp was expecting, we want a different farm policy and we are under the impression that President Fernandez de Kirchner has not been correctly advised on the issues. Farm grievances are not only soybeans. For the last two years we've been asking for dialogue and interviews and have been systematically ignored". Another of the farm leaders pointed out to the fact that "camp and farmers are stronger with the conflict" because citizens have come out to the streets "to support us". Precisely on Tuesday former president Nestor Kirchner, husband of Cristina Fernandez, has organized a massive political rally in Plaza de Mayo, the neuralgic center of Argentine politics. Mr. Kirchner has been working so that government friendly organizations (trade unions, pickets, governors, mayors, group leaders) flood the square with over 100.000 militants who will listen and applaud a speech by President Cristina Kirchner and thus confirming that the "street belongs" to the Kirchners and the previous nights pot-banging were simply organized efforts to "destabilize" the government.