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October 8, 2008
Farmers, drought and taxes cripple Argentina

Argentina is one of the world’s top exporters of beef, corn, soybeans and wheat. But the country finds itself trapped by food inflation, a slumping economy and one of the worst droughts in almost 50 years.

On Friday, Argentina’s farmers declared a six-day strike, demanding government action in reducing export taxes. Riots and protests over export prices, however, are not new.

Last March, thousands of farmers went on a 128-day strike when President Cristina Fernández de Kirchner raised taxes on soy and cereals to encourage farmers to sell more food at home, stabilizing domestic food prices. The export tax hike — with some taxes as high as 50 percent — was ultimately killed, sending food prices back up again.

Producers Bryan Myers and Megan Thompson and correspondent Edie Magnus report on the food crisis from the grocery aisle to the countryside in Buenos Aires.

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5 comments

#5

[…] more, watch the Worldfocus signature story “Farmers, drought and taxes cripple Argentina” and listen to our online radio show on Argentina’s farming […]

#4

[…] Watch the Worldfocus signature story “Farmers, drought and taxes cripple Argentina.” […]

#3

Cristina thinks all ranchers are wealthy and should pay their way. I’d love to ask her husband and former president where is the money (370 million dollars) that used to belong to the province of Santa Cruz when he was its governor. And today there is a chain of hotels in Patagonia named “HOTELS K” (KIRCHNER)…isn’t it obvious? Bunch of thieves and they keep taking from farmers and taxing poor people.

#2

[…] the same broadcast, there was a story on there about food shortages and high taxes in Argentina but there was scarcely any back story about Argentina’s recovery from bankruptcy seven years […]

#1

Why doesn’t Argentina import food to provide competition to local farm products? Judiciously encouraged, couldn’t it be helpful? That’s not to say they should put control of imports in the hands of foreign counries and companies that would result in the inability of local farmers to compete, as in Mexico and other “free trade” countries.

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