By Nicolas Misculin
BUENOS AIRES (Reuters) - Argentina's government offeredsmall farmers a package of measures on Monday designed to end a19-day farm revolt over soy export taxes, but farmers saidtheir strike would continue until Wednesday at least.
Almost three weeks of roadblocks by farmers have causedfood shortages, paralyzed grain exports from agriculturalpowerhouse Argentina and turned into a major political conflictfor President Cristina Fernandez de Kirchner.
The centre-left government said it would give small farmersa rebate on new, higher taxes for soy and sunflower seedexports, as well as other benefits such as compensation fortransportation costs for small farmers far from markets.
"We have to differentiate for small farmers," EconomyMinister Martin Lousteau said in a speech at the governmentpalace.
Lousteau said the automatic rebate would apply to some 80percent of growers and would return small farmers to the profitmargins they had before the government announced a new exporttax regime for grains on March 11.
In her third speech on the farm protests, Fernandez askedfarmers to "please" lift the roadblocks.
But farm leaders said in a news conference they wouldcontinue protests that have blocked highways and held back farmgoods since March 13, making beef, dairy, chicken and producescarce in the capital.
They said they were disappointed in the measures, some ofwhich they said were not new.
"The essence of the motive for our actions has not beenmodified. It was important for us to keep talking," saidEduardo Buzzi, president of the FAA, one of Argentina's fourbiggest farm groups.
He said farm groups would let dairy products through tomarket.
GRAIN EXPORTS FROZEN
During the strike millions of tonnes of grains have beenheld back from port, forcing export companies to declare forcemajeure and disrupting sales to China and Europe.
Argentina is the world's third-biggest soy exporter and aleading supplier of corn, beef and wheat.
Fernandez, who took office in December, refused tonegotiate with farmers while they blocked highways, and theydug in their heels as well.
Farmers are challenging her uncompromising style and hereconomic model, which has fuelled rapid growth in recent yearsbut imposed export bans and price controls on some agriculturalproducts.
The president said on Monday it was important for Argentinato make sure soy did not crowd out other crops that areimportant for the domestic market.
She said the higher taxes on soy exports would help controlinflation on food items in Argentina and added that unbridledsoy production could deplete soil quality and has causeddeforestation.
(Writing by Fiona Ortiz; Editing by Kieran Murray)
