Argentine farm strike idles cattle, grains markets

* A handful of cattle at the biggest auction

* Unclear whether protest will be extended

BUENOS AIRES, Aug 31 - Argentine cattle auctions and grains markets were almost inactive on Monday as farmers refused to sell products on the fourth day of a protest against government agricultural policy.

The commercial strike over export taxes, emergency programs and other issues has revived a bitter conflict between farmers and the government that stalled local markets for months last year in one of the world's biggest suppliers of beef, soy and corn.

Only 33 animals arrived on Monday at the Liniers cattle market, compared with close to 3,000 the same day last week. Corn, soy, wheat and other grains and oil seeds were not expected to trade at all on Argentine exchanges where crushers, processors, millers and shippers get their supplies.

Farmers said the prolonged conflict had deeply affected the country's agricultural industry.

"Agricultural machinery factories are shut down, truck drivers are waiting to see if they get a job, and farm workers are idle," Eduardo Buzzi, president of the Argentine Agrarian Federation, one of the farm groups organizing the strike, told a local radio station.

"This is how how Argentina's farming looks under the Kirchners," he added, referring to president Cristina Fernandez, and her predecessor and husband, Nestor Kirchner.

The strike is planned to continue through Friday, but some farm leaders say it could be extended four more days.

The new round of protests was triggered by the president's veto of part of a drought-aid law. A severe drought in much of Argentina's farm areas has slashed wheat output and sowing and has further incensed anger against government policy.

Farmers say government emergency measures to help them cope with drought have been insufficient or improperly implemented.

Farmers from several agrarian groups protested along roadsides over the weekend, some on top of their tractors.

But agrarian leaders say they want to avoid violent clashes like the ones that erupted last year when a political crisis hit the economy after four months of farm protests over a government attempt to raise soy export taxes.

President Fernandez backed down on most higher taxes but has refused to trim the 35 percent export levy on soy, Argentina's top crop produced almost only for export, saying high profit from soy should be taxed to fund social programs and to promote other crops for domestic use.