BUENOS AIRES—The Argentine government will announce changes Thursday to a controversial soy exports tax that sparked more than two months of farm protests, a government source told Reuters.
Announcements about farm policy will come at a news conference with the cabinet chief and economy minister, said another government source. Both sources asked not to be named because of government policy regarding public statements.
Argentina is one of the world's top suppliers of soy, corn, wheat and beef. Farmers Thursday launched their third protest in less than three months against government farm policy, especially a new sliding-scale tax that increases soy export levies at current prices.
In their protests, farmers have held grains and livestock back from markets. Initially this affected internal supplies, but the agricultural groups later toned down protests so that only exports were affected.
President Cristina Fernandez has so far refused to answer farm sector demands that she repeal the new tax, although she did announce rebates and subsidies for small soy producers.
She has defended the tax as a way to distribute the benefits of windfall profit from high world commodities prices.
Two attempts at farmer-government talks failed to end the tax revolt, which has become a major political crisis for Fernandez. Her popularity has slumped, government bond prices were hit, and the Central Bank was forced to shore up the peso currency.
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