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Venezuela Seizes Private Farmland to Raise Cattle (Update1)

By Alex Kennedy

March 25 (Bloomberg) -- Venezuela President Hugo Chavez said the government seized 16 private farms and ranches it considers unused, and plans to use most of the land to raise cattle for meat and milk production.

Venezuela took over about 330,000 hectares (800,000 acres) in at least four states, and will convert the land into ``social property, which everyone owns,'' Chavez said.

``This is an attack by the state and the people on large land holdings,'' Chavez said today in Barinas state during his weekly television show. ``How can the country develop if we don't put this land to work?''

The land seizures are part of Chavez's plan to install a socialist economic and political model in Venezuela. Last month, the government nationalized the country's biggest private telephone and electricity companies, and plans to take over four heavy-oil fields run by foreign companies by May 1.

Chavez is seeking to unify all his supporters in a single socialist party he plans to establish this year. Venezuela may eliminate the National Assembly and transfer the powers of congress to community councils, which the government began organizing this year, congressman Dario Vivas said last week.

A drop in domestic agriculture production last year helped spur food shortages and the rationing of foods such as sugar, meat and milk. Venezuela imports about 70 percent of its food.

Venezuela has seized more than 2 million hectares since it began taking over large farms and ranches in 2005 to distribute them to poor farmers and homeless families.

``These are unproductive fertile lands, where there isn't production or investment,'' Chavez said. ``Free men and land, and horror to the oligarchy.''

To contact the reporter on this story: Alex Kennedy in Caracas at at Akennedy1@bloomberg.net

Last Updated: March 25, 2007 14:31 EDT

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