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WHAT if you could make fuel for your car in your backyard for less than you pay at the pump? Would you?

The first question has driven Floyd S. Butterfield for more than two decades. Mr. Butterfield, 52, is something of a legend for people who make their own ethanol. In 1982, he won a California Department of Food and Agriculture contest for best design of an ethanol still, albeit one that he could not market profitably at the time.

Now he thinks that he can, thanks to his partnership with the Silicon Valley entrepreneur Thomas J. Quinn. The two have started the E-Fuel Corporation, which soon will announce its home ethanol system, the E-Fuel 100 MicroFueler. It will be about as large as a stackable washer-dryer, sell for $9,995 and ship before year-end.

The net cost to consumers could drop by half after government incentives for alternate fuels, like tax credits, are applied.

The MicroFueler will use sugar as its main fuel source, or feedstock, along with a specially packaged time-release yeast the company has developed. Depending on the cost of sugar, plus water and electricity, the company says it could cost as little as a dollar a gallon to make ethanol. In fact, Mr. Quinn sometimes collects left-over alcohol from bars and restaurants in Los Gatos, Calif., where he lives, and turns it into ethanol; the only cost is for the electricity used in processing.

In general, he says, burning a gallon of ethanol made by his system will produce one-eighth the carbon of the same amount of gasoline.

''It's going to cause havoc in the market and cause great financial stress in the oil industry,'' Mr. Quinn boasts.

He may well turn out to be right. But brewing ethanol in the backyard isn't as easy as barbecuing hamburgers. Distilling large quantities of ethanol typically has required a lot of equipment, says Daniel M. Kammen, director of the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley. In addition, he says that quality control and efficiency of home brew usually pale compared with those of commercial refineries. ''There's a lot of hurdles you have to overcome. It's entirely possible that they've done it, but skepticism is a virtue,'' Mr. Kammen says.

To be sure, Mr. Quinn, 53, has been involved with successful innovations before. For instance, he patented the motion sensor technology used in Nintendo's wildly popular Wii gaming system.

More to the point, he was the product marketing manager for Alan F. Shugart's pioneering hard disk drive when the personal computer was shifting from a hobbyists' niche to a major industry. ''I remember people laughing at us and saying what a stupid idea it was to do that disk drive,'' Mr. Quinn says.

Mr. Butterfield thinks that the MicroFueler is as much a game changer as the personal computer. He says that working with Mr. Quinn's microelectronics experts -- E-Fuel now employs 15 people -- has led to breakthroughs that have cut the energy requirements of making ethanol in half. One such advance is a membrane distiller, which, Mr. Quinn says, uses extremely fine filters to separate water from alcohol at lower heat and in fewer steps than in conventional ethanol refining. Using sugar as a feedstock means that there is virtually no smell, and its water byproduct will be drinkable.

E-Fuel has bold plans: It intends to operate internationally from the start, with production of the MicroFueler in China and Britain as well as the United States. And Mr. Butterfield is already at work on a version for commercial use, as well as systems that will use feedstocks other than sugar.

Ethanol has long had home brewers, and permits are available through the Alcohol and Tobacco Tax and Trade Bureau. (You must be a property owner and agree to make your ethanol outdoors.) But there are plenty of reasons to question whether personal fueling systems will become the fuel industry's version of the personal computer.

For starters, sugar-based ethanol doesn't look much cheaper than gas. It takes 10 to 14 pounds of sugar to make a gallon of ethanol, and raw sugar sells in the United States for about 20 cents a pound, says Michael E. Salassi, a professor in the department of agricultural economics at Louisiana State University. But Mr. Quinn says that as of January this year, under the North American Free Trade Agreement, he can buy inedible sugar from Mexico for as little as 2.5 cents a pound, which puts the math in his favor. While this type of sugar has not been sold to consumers, E-Fuel says it is developing a distribution network for it.

In addition, it's illegal in the United States to operate a car on 100 percent ethanol, with exceptions for off-road vehicles like Indy cars and farm equipment. Mr. Quinn has a federal permit to make his own fuel, and believes that if MicroFuelers start popping up like swimming pools, regulators will adapt by certifying pure ethanol for cars.

Despite all the hurdles, Mr. Quinn and Mr. Butterfield may be on to something. There are plenty of consumers who want to reduce their carbon footprint and are willing to make an upfront investment to do it -- consider the success of the Prius.

And if oil prices continue to rise, the economics of buying a MicroFueler will become only better and better.
URL: http://www.nytimes.com
SUBJECT: BIOFUELS (90%); ETHANOL (90%); ALCOHOLS (90%); OIL & GAS INDUSTRY (78%); RESTAURANTS (76%); ENTREPRENEURSHIP (75%); HOME SECURITY (74%); PETROLEUM REFINERIES (72%); DRINKING PLACES (65%); DATA STORAGE DEVICES (60%); HARD DRIVES (60%); GAMING (50%)
COMPANY: NINTENDO CO LTD (51%)
TICKER: NNT (LSE) (51%); 7974 (TSE) (51%)
GEOGRAPHIC: SAN FRANCISCO BAY AREA, CA, USA (92%) CALIFORNIA, USA (92%) UNITED STATES (92%)
LOAD-DATE: April 27, 2008
LANGUAGE: ENGLISH
GRAPHIC: PHOTO: Floyd S. Butterfield, left, and Thomas J. Quinn with the MicroFueler in Los Gatos, Calif. They say this ethanol system could be a threat to the oil industry.(PHOTOGRAPH BY JIM WILSON/THE NEW YORK TIMES)
PUBLICATION-TYPE: Newspaper

Copyright 2008 The New York Times Company



825 of 1231 DOCUMENTS

The New York Times
April 27, 2008 Sunday

Late Edition - Final


Correction: Some Just See Old Carpet. These Two See a Golden Opportunity.
SECTION: Section LI; Column 0; Long Island Weekly Desk; Pg. 2
LENGTH: 85 words
An article last Sunday about two entrepreneurs involved in carpet recycling technology misstated the middle initial of one of the two men. He is Frank J. Levy, not Frank L. The article also misstated the standing of their project and others in an international competition, the Energy Globe awards. Although the project won first place among all United States entries, there has not yet been a winner in the international competition for the Earth category. That winner will be announced in Brussels on May 26.
URL: http://www.nytimes.com
LOAD-DATE: April 27, 2008
LANGUAGE: ENGLISH
DOCUMENT-TYPE: Correction
PUBLICATION-TYPE: Newspaper

Copyright 2008 The New York Times Company



826 of 1231 DOCUMENTS

The New York Times
April 27, 2008 Sunday

Late Edition - Final


BYLINE: By KATIE ARNOLD
SECTION: Section TR; Column 0; Travel Desk; FORAGING; Pg. 6
LENGTH: 384 words
Usually when I hear the words ''garden center,'' I glaze over, imagining rows upon rows of tiny plastic containers, sprouting stalks so wobbly and forlorn it'll be months until they resemble actual plants. I picture tedious displays of hose nozzles and my horticulturalist husband rattling off the Latin name of every species in sight.

The first sign that Cornerstone Gardens, on the southern outskirts of Sonoma, is not your typical garden center is the long-dead Monterey pine outside, its skeletal limbs coated in 25,000 blue plastic Christmas balls. Then there are two 11-foot-high Adirondack chairs, and a ''flying'' picket fence levitating 7 to 10 feet above the perimeter.

And that's just what you can see from the road.

In addition to Blue Tree and 16 other ''concept gardens'' designed by leading landscape architects, the nine-acre complex is home to a local boutique wine collective, a cafe and a handful of design shops. Artefact Design & Salvage, crammed with architectural antiques from Europe, stocks Italian carved fountains and sandstone garden orbs from France, as well as finds from closer to home: pressed-tin house numbers or jars of Napa-made hand cream. Across the courtyard, there are mod knickknacks at Zipper Gifts (gold-plated fortune-cookie place holders, $12).

Blurring the line between art and commerce, Cornerstone is so high-concept that even its founder has trouble describing it. ''It's always been hard to explain to people,'' said Chris Hougie, 56, an entrepreneur and former toy inventor who started Cornerstone in 2004 after visiting Chaumont, a collection of folly gardens in the Loire Valley. ''I wanted to change the notion of what a garden can be -- a place that's as much about ideas as about plants.''

The garden's rotating exhibits now include an orchard of plastic daisy pinwheels designed by Ken Smith, an above-ground ''wishing well'' by Rios Clementi Hale Studios, and Pamela Burton's sloping hay-bale bunker adorned with feather grass and a lily pond. Don't try too hard to figure this place out: It's much more fun to feel, rather than think, what the gardens are trying to tell you. Best of all, you won't have to remember a single Latin name.

Cornerstone Gardens, 23570 Highway 121, Sonoma, Calif; (707) 933-3010; www.cornerstoneplace.com.
URL: http://www.nytimes.com
SUBJECT: NURSERY & GARDEN STORES (90%); ARCHITECTURAL SERVICES (73%); CHRISTMAS (70%)
GEOGRAPHIC: SAN FRANCISCO BAY AREA, CA, USA (77%) CENTRE-VAL DE LOIRE, FRANCE (79%); CALIFORNIA, USA (77%) FRANCE (79%); UNITED STATES (77%); EUROPE (55%)
LOAD-DATE: April 27, 2008
LANGUAGE: ENGLISH
GRAPHIC: PHOTO (PHOTOGRAPH BY PETER DASILVA FOR THE NEW YORK TIMES)
PUBLICATION-TYPE: Newspaper

Copyright 2008 The New York Times Company



827 of 1231 DOCUMENTS

The New York Times
April 27, 2008 Sunday

Late Edition - Final


INSIDE THE TIMES: April 27, 2008
SECTION: Section A; Column 0; Metropolitan Desk; Pg. 2
LENGTH: 1743 words
INTERNATIONAL

ARGENTINA'S FARMERS

In Revolt Over Taxes

When Argentina's government decided to impose higher taxes on farm profits in March, it set off a rural revolt, with enraged farmers blocking roads around the country for three weeks. Since then, the government has been trying to quell fears at the negotiating table, but some farmers say the talks are yet more proof that President Cristina Fernandez de Kirchner does not understand them. PAGE 6

A SNUB FOR ZIMBABWE

Angola announced that a Chinese ship bearing arms for its longtime ally Zimbabwe would not be allowed to unload them while docked in Angola. It was the latest and most surprising evidence of success in the international pressure campaign against the Zimbabwean government. PAGE 12

NATIONAL

NEED A BICYCLE?

Here. Take One.

The bicycle-centric cultures of Europe have long made getting about on two wheels more simple than it is in most American cities. But, under a new public-private program in the nation's capital, people will soon be able to borrow a bicycle anytime they need one. PAGE 23

THE TOXIN-EATING FUNGUS

When the residents of Fort Bragg, Calif., faced the need to clean up the dioxin that pollutes the site of a former lumber mill or risk losing a $4.2 million grant for a coastal trail, they considered the options. Among them: mushrooms. PAGE 26

METRO

TEMPERS BANK AND FLARE



In Wake of Bell Verdict

While the Sean Bell verdict may have dampened the spirits and responses of some family and friends, one burned high and hot. Nicole Paultre Bell, the woman to marry Mr. Bell before his death and previously gentle in demeanor, vowed to hold the city accountable, saying the the justice system had ''let her down.'' Page 35

OUT OF THE POOL

For the regulars at the adult morning swim program at the Boys and Girls Clubs of Northern Westchester, there was more to it than just exercise. There was family, in the broad sense. Connections. Caring. And so when the club decided to cancel the program, citing cost, an uproar followed. Our Towns, by Peter Applebome. PAGE 31

THE BATTLE FOR COPIERS

Most legislative bodies confer some special privileges on the majority party, but few can top New York's Legislature for extremes. So for Democrats hoping to take control of the State Senate this November for the first time in decades, there's even more at stake than just controlling legislation. Like getting new office supplies. PAGE 31

SUNDAY BUSINESS

WASN'T ANYBODY MINDING

The Wall Street Store?

In case you have been wondering how the credit crisis on Wall Street became such a mess -- wondering about fail-safe devices, government watchdogs, ratings agencies and the like -- you may well want to read a speech on the whole thing given by an investor named David Einhorn. Or at least the CliffsNotes version. PAGE 1

HOME-BREWED CAR FUEL

A fellow in California has teamed with a Silicon Valley entrepreneur to create a home ethanol system that will be about as large as a stackable washer-dryer, sell for $9,995, and produce fuel for cars at a cost of, say, $1 a gallon. Sound good? Well, ''skepticism is a virtue,'' one expert says. PAGE 5

WARMING TO THE VILLAIN

The evil businessman has been a reliable film villain since even before people in movies talked. (Pick your favorite: Mr. Potter? Gordon Gekko? Other?) But some coming releases suggest that moviemakers might be rethinking the archetype, if only slightly. PAGE 7

Competing With iPhones 1

Filling the Rice Bowl 8

A Virtual Law Library 5

SPORTS


FRESH START FOR BURTON

After Four Off-Years

There was a time when Jeff Burton was considered a champion in waiting on the Nascar circuit, especially after he finished third in Cup point standings in 2000. Then came less impressive finishes and a flame-out with Roush Racing four years ago. But he has regained some status this season. PAGE 8

PLAYOFF CHANCES DWINDLE

Lopsided matchups and sluggish TV ratings for college football's Bowl Championship Series this year gave rise to talk about potential change in the postseason structure. But with the annual B.C.S. meetings starting Sunday, optimism has turned to pessimism, and talk of change appears to be just that. PAGE 6

MAGAZINE


OUT OF THE CLOSET

And Toward the Altar

Why would gay men in their 20s rush to marry? Maybe it has something to do with gay teenagers' coming out earlier and being able to experience a gay adolescence, Benoit Denizet-Lewis writes. And with all that out of the way, he adds, they just want what they've seen espoused by the mainstream. PAGE 28

OBITUARIES

CAMERON ARGETSINGER, 87

His love of speed cultivated on country roads led him to help revive road racing in postwar America and establish Watkins Glen, N.Y., as a stop on the Formula One circuit. PAGE 29

STYLES

A NEW CHALLENGE



For Some Marriages

It's a situation not specifically anticipated in the traditional better-worse, richer-poorer marital vows: What if one member of the original pair has a sex-change operation? The law, as you might expect, is not exactly prepared for that either, as some anxious couples are finding out. PAGE 1

NARROWCASTING FOR MATES

Let's say you're an Ayn Rand fan. A really, really big fan: Her writing inspired you to turn from devout Christianity to atheism. You want a partner who shares your outlook on life, but how to find one? Look online, of course, among the growing number of niche dating sites. PAGE 9

For Mom, Under $40 3

Cocktails and Cheddar 6

Night Out: Jamie Lidell 4

TRAVEL


SEEKING WHAT ADAMS

Saw Through His Lens

Ansel Adams first visited Yosemite National Park when he was 14, and he accidentally snapped a topsy-turvy photograph that became one of his lifelong favorites. Today, professional and novice photographers still go to Yosemite, trying to retrace his path -- and, perhaps, capture a bit of his magic. PAGE 3

A MIXED BLESSING

Its grand Buddhist temples and tucked-away shrines, its mountains and trickling canals, its spring-blossoming cherry trees and autumn-flaming maples, make Kyoto perhaps Japan's prettiest city. So of course it's packed with tourists. And expensive -- is it possible to find tranquillity on a budget? PAGE 7

36 Hours: Naples, Italy 13

ARTS & LEISURE

WHAT ICONOCLASTS OF '68

Tell Us, 40 Years Later

Legend has it that the disturbances that convulsed France in the spring of 1968 began at the movies and came full circle when, three months later, the Cannes Film Festival was halted. New Yorkers can mark the 40th anniversary of that year with a program on Jean-Luc Godard at the Film Forum and a wide-ranging series at Lincoln Center. A review by A. O. Scott. PAGE 1

MADONNA, BACK TO ROOTS

Madonna's 11th studio album, ''Hard Candy,'' is devoted to the instant gratification of a musical sweet tooth, Jon Pareles writes, the kind of collection a record company craves in the current embattled market: a set of catchy, easily digestible, mass-appeal songs by a star who's not taking chances. PAGE 1

BEHIND THE COVERS

The ''I want my MTV'' campaign made him one of the most influential admen of his generation. But among admirers of brilliant design, George Lois is most esteemed for the covers he created for Esquire, 31 of which are in an exhibition at the Museum of Modern Art. PAGE 1

Mamet on Fight Films 19

The 'Dude' Campaign 27

Alastair Macaulay: Legacy of Jerome Robbins 8

REAL ESTATE

LIVING LARGE

And Outdoors

Much of New York City is indoors, to adapt a line from the humorist Dave Barry, so it might stand to reason that outdoor spaces like terraces and balconies would be at a premium, especially at this time of year. But not everybody finds them worth the trouble. PAGE 1

BOOK REVIEW

MARTIN AMIS,

Catastrophist

In ''The Second Plane,'' his collection of essays about Sept. 11, Martin Amis substitutes insult for analysis and writes about history and politics as if Orwell had never lived, Leon Wieseltier writes. For all of Mr. Amis's testimonies about the event's transformative impact, there is at least one way in which he has been thoroughly untouched by the atrocity: he is still busy with the pursuit of extraordinary sentences. PAGE 1

AUTOMOBILES

G.M. CREATES HYBRIDS

In Unexpected Places

General Motors has installed an innovative hybrid system in a couple of its larger sport utilities and plans to add the system to other models. In addition to considering the higher costs, prospective buyers might want to reflect on whether the car-based crossovers that are inherently more efficient might be a better choice. PAGE 1

WEEK IN REVIEW

A DECADE OF DESPAIR

For Presidential Hopes

The campaign season has been filled with references to the historic possibilities posed by the remaining two Democratic candidates for president. But Senator John McCain has a historic role of his own to play: He is the latest -- and almost certainly the last -- hope for Americans born in the 1930s to send one of their own to the White House. PAGE 1

TESTING DEMOCRATIC UNITY

Democrats promise that despite the rancor of this primary season, all will be forgiven in the end and the party will rally around the nominee. They cite past experience as proof. But will the polarization exposed this year be so deep that it cannot be bridged? PAGE 4

EDITORIAL:

Is Trade the Problem?

This country deserves a fact-based discussion of what is causing the dislocations in American workers' lives, how much trade is to blame and what government can do to help. PAGE 11

EDITORIAL:

Private Sector Spoils

Congress has made a start in plugging the multibillion-dollar loophole that the White House let slip into its promised crackdown on fraudulent contractors. PAGE 11

EDITORIAL:

Laura Berg's Letter

Laura Berg was threatened with a sedition investigation after she wrote a letter to the editor denouncing the Bush administration's bungling of Hurricane Katrina and the Iraq war. PAGE 11

OP-ED:

Maureen Dowd



Barack is a Jell-O fellow. But Hillary is hungry for more than chips and dip. PAGE 12

OP-ED:


Frank Rich

The prolonged and bitter battle for the Democratic nomination may lull John McCain into unjustified complacency. PAGE 13

OP-ED:

Elizabeth Edwards, a senior fellow at the Center for American Progress and the wife of the former Democratic presidential candidate, on why voters know about the horse race, but not about the issues. Hint: It's the news media's fault. PAGE 12


URL: http://www.nytimes.com
SUBJECT: TAXES & TAXATION (90%); LEGISLATIVE BODIES (89%); US STATE GOVERNMENT (78%); FARMERS & RANCHERS (78%); LEGISLATORS (78%); POLITICAL PARTIES (78%); TALKS & MEETINGS (77%); CITIES (68%); CITY LIFE (68%); GRANTS & GIFTS (65%); YOUTH CLUBS & ACTIVITIES (62%); SWIMMING (62%); SPORTS (62%); SAW MILLS (51%); CREDIT CRISIS (73%)
PERSON: CRISTINA FERNANDEZ DE KIRCHNER (72%)
GEOGRAPHIC: NEW YORK, USA (79%) ARGENTINA (94%); ZIMBABWE (93%); UNITED STATES (79%)
LOAD-DATE: April 27, 2008
LANGUAGE: ENGLISH
GRAPHIC: PHOTOS
PUBLICATION-TYPE: Newspaper

Copyright 2008 The New York Times Company



828 of 1231 DOCUMENTS

The New York Times
April 27, 2008 Sunday

Late Edition - Final


In Argentina's Grain Belt, Farmers Revolt Over Taxes
BYLINE: By ALEXEI BARRIONUEVO; Vinod Sreeharsha contributed reporting from Buenos Aires.
SECTION: Section A; Column 0; Foreign Desk; Pg. 6
LENGTH: 1440 words
DATELINE: WENCESLAO ESCALANTE, Argentina
-- When the government decided in March to raise taxes on farmers' profits, it set off a rural revolt in Argentina. For three weeks enraged farmers blocked roads nationwide, paralyzing grain and meat sales and causing food shortages.

Since then, the government has been trying to quell Argentina's restive farmers at the negotiating table. But farmers like Marcelo and Pablo Marchetti, brothers in this country's lush grain belt west of the capital, say the talks are going nowhere and are yet more proof that President Cristina Fernandez de Kirchner, in office just four months, does not understand them.

They are preparing to resume crippling strikes of grain exports once the deadline for the talks expires on Friday. Some farmers have already spontaneously put up roadblocks in recent days.

''They don't want to listen to us,'' said Pablo Marchetti, 40, whose Italian great-grandfather founded this town of 1,500 a century ago. ''In the short term, I just don't see them finding a logical solution to this whole problem.''

The farmers say they are concerned not only about profits, though the steeper taxes have cut into them. They also say Mrs. Kirchner's policies are threatening to reverse one of the great agricultural booms in Argentina's history and to snuff out a technological and entrepreneurial revolution that has made the country a leading food source in a world racked by hunger and rising food prices.

''We have an enormous historic opportunity to grow as a country, but the government wants to punish a sector that should continue to be an engine of growth,'' said Marcelo Marchetti, 39. ''The world has opened its doors to us, and here we are fighting among ourselves.''

Tensions with the farmers exploded with unusual ferocity here, farmers say, in part because the new taxes touched a nerve in a nation where past governments used the farm sector to redistribute wealth to the poor.

Mrs. Kirchner's politics have stirred memories of Gen. Juan Domingo Peron, who in the early 1950s used profits from agricultural exports to industrialize the country and lift the poor. Trying to check inflation that independent economists put at close to 20 percent, Mrs. Kirchner, too, turned to farm profits and export controls, looking to increase subsidies for the poor and food supplies at home.

Farmer discontent had been growing since at least 2006, when Nestor Kirchner, her husband and predecessor as president, limited beef exports to ensure a cheap supply at home. Once a dominant meat supplier, Argentina has watched as Brazil has passed it by, building the world's largest beef export industry. Last year, even their tiny neighbor Uruguay exported more beef per capita than Argentina.

Rural angst reached a boiling point in early March when the government increased export tariffs for the second time since October. The policies have also set de facto ceilings on prices.

Mrs. Kirchner has criticized Argentine farmers as focusing too much on cash crops like soybeans at the expense of products needed for Argentine consumption, like dairy and meat. Soy exports have grown by 263 percent since 1997, to 11.5 million tons last year. She cast the farmers as greedy oligarchs in 4-by-4 vehicles, and as unpatriotic plotters intent on overthrowing the government.

Just days after the latest export measures took hold, the farmers mobilized. Using Web sites, cellphones and satellite dishes, they formed a communications network linking farms of all sizes in a joint stand against the government.

Since both sides agreed to hold talks, the government has refused to back down on the export tariffs and has hardened its stance against the farmers. After promising in mid-April to lift a ban on beef exports, the government decided last week to keep it.

It also canceled a meeting to discuss the wheat sector, making any chance of lifting a ban on those exports seem increasingly unlikely. And it threatened to impose sanctions on farmers if they failed to satisfy domestic demand.

Press officers for the economy minister, who resigned Thursday, and for the interior commerce secretary did not respond to numerous requests for interviews made over the past two weeks. Miguel Nunez, the president's chief spokesman, also did not respond to interview requests.

Daniel Kerner, an analyst with Eurasia Group, a consulting firm, said the rigidity of the government's position is rooted in its need to ''regain its political standing and avoid looking weak.''

But opinion polls suggest Mrs. Kirchner's uncompromising line on the farm revolt has damaged her popularity. She is making the political gamble that the farmers will not be able to mount strikes with the intensity and unity they managed before, analysts said.

Polls have shown that voters, especially in the cities, will not tolerate food shortages or significant increases in food prices.

But where Mrs. Kirchner's government sees political survival, the Marchetti brothers see a potentially lost opportunity for the country to prosper from a historic boom in commodity prices.

Agriculture has a storied place in Argentine history. A surge in meat and grain exports in the 1880s helped the country's leaders build the European-style city of Buenos Aires and briefly catapulted Argentina among the 10 richest countries in the world.

Fifteen years ago, the Marchettis began farming here in Cordoba, the country's second most important province for agriculture. Argentina was just opening to foreign investment, its currency pegged to the dollar, and it quickly became among the more competitive agricultural producers in the world.

Today, with prices for soybeans, corn and wheat at or near record highs, ''this was Argentina's time to feed the world,'' said Dan Basse, president of AgResource Company, an agricultural consultancy in Chicago.

But the conflict over export taxes has bred uncertainty about Argentina, Mr. Basse said, and international grain companies have already signaled their preference to pour more money into neighboring Brazil, another agricultural juggernaut where farm policies have been clearer and more encouraging. Both are considered critical to global efforts to fill the soaring demand for soybeans in China and India.

In Argentina's sprawling rural provinces, the standoff has also sown seeds of doubt and weakened the Peronists. Governors have found themselves torn between supporting Mrs. Kirchner and their farm constituents.

An emergency law passed in 2002, in the midst of an economic crisis, has allowed the Kirchner government to create export taxes and keep the revenues away from governors and mayors. The Kirchners have used the doling out of those revenues to maintain political control over the provinces, which were critical to Mrs. Kirchner's election.

But lately some governors have fought back, none more so than Juan Schiaretti, Cordoba's governor and a Peronist, who won the election because of rural support. In a brief interview, Mr. Schiaretti confirmed that the farm conflict had created tensions between him and the national government.

Mr. Schiaretti has pushed for more of what lawmakers call ''co-participation'' funds to ensure the provinces get a bigger share of farm revenues. Carlos Gutierrez, Cordoba's agriculture minister, said that only 10 percent of the tariffs on soy flows back to the province for infrastructure and other projects; the rest stays in Buenos Aires with the national government.

In Wenceslao Escalante, the Marchetti brothers, who both studied accounting in college, said the government's policies were killing their incentives toproduce more. A decade ago they formed their company, Cigra, investing in the latest seed technology and farm equipment, and later buying $400,000 grain harvesters with global positioning systems.

Seven years ago the brothers expanded north into Chaco and Santiago del Estero, provinces where the land was thought to be too dry to support corn and soybeans. Today, with more advanced seeds and better crop rotation, it is considered the frontier for Argentine agriculture. But production there is threatened by declining profitability.

As the government has taken more from the farmers, international prices for the supplies to produce their crops, including fertilizers and seeds, have been rising faster than the prices of the commodities, Marcelo Marchetti said. The price of phosphorus, for example, has nearly tripled since last year, he said.

Suddenly the future seems cloudier. The brothers have decided not to make any investments over the next year.

''Everything is on hold,'' Mr. Marchetti said.


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