UPDATE 1-Argentine farm strike idles cattle, grains markets

* A handful of cattle at the biggest auction

* Rosario grains market stands idle

* Several farm leaders oppose strike extension (Updates with market close, adds Biolcati)

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, drought aid and export curbs 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, and the strike paralyzed the leading grains market of Rosario.

"There wasn't any trade at all, not a single bid," one Rosario grains broker said.

A tax hike on soy exports triggered the farming standoff in March 2008, but farmers are disgruntled with the government's wider agricultural policies and blame them for compounding the impact of a global slowdown.

"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, husband Nestor Kirchner.

The strike is due to end on Friday, but farm leaders will decide toward the end of the week whether to prolong it. Some farmers want to stay on strike for another four days, but several leaders said on Monday it should end as planned.

"This strike ought to end on Friday and, if we don't get a response from the government, we should immediately focus on the next step in our plan of action," said Hugo Biolcati, president of the Argentine Rural Society.

The new round of protests was sparked 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 heightened anti-government sentiment.

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.