Rachel Laudan

Earlier I posted on my reactions to the standoff between Argentine farmers and the government over a proposed export tax on grains of around 40%. Given the widespread reporting on the “food crisis” I have been amazed how little attention has been paid to this conflict which has, or now had, major implications for the world food supply.

Well, yesterday after a protracted debate the Argentine Senate refused to sign the agricultural export tax into law.

This is great news for Argentina which was on the verge of destroying its most productive industry. And it’s great news for the rest of the world because this major source of basic grains and soy won’t dry up. Soy futures fell immediately.

Here’s a Wall Street Journal report on the Argentine farmers’ struggle. And here’s an account of the reaction of the market to the news of the Argentine farmer’s victory.