SYDNEY, Sept 19, 2007 (AFP) - Australia's long-running drought is expected to slash wheat production in the coming year by a third, lowering export levels and increasing price pressures, analysts said Wednesday.

As farmers battle the worst dry spell in a century, the official government forecaster cut its prediction for total winter grain production in 2007-08 from 37 million tonnes to 25.6 million tonnes.

BRUSSELS, Sept 13, 2007 (AFP) - The European Commission proposed Thursday to drop for a year rules obliging grain farmers not to plant all of their land to help combat spiralling prices for cereals like wheat.

'The Commission has today cut the rate of compulsory set-aside to zero percent for grain planted either now, in the autumn or next spring, in other words for next year's harvest,' said farm spokesman Michael Mann.

MOSCOW, Sept 10, 2007 (AFP) - Russia is set to introduce taxes of up to 25 percent on grain exports, the Kommersant daily reported Monday quoting an official, but experts warned such a move would undermine struggling farmers.

'The order to complete all necessary documentation for product intervention and introducing export taxes was received by the ministry two weeks ago,' the daily's source said, adding that 'streamlining the strategy of grain market intervention and starting on it is due this week.'

PARIS, July 29, 2007 (AFP) - Biofuels, destined to partially offset a coming oil shortage and reduce greenhouse gas emissions, will require much more farm land, forcing the European Union to cultivate fields that have lain fallow.

The European Union wants biofuels to account for 10 percent of the total of motor fuels in 2020, against an estimated 1.6 percent last year.

There are two main kinds of biofuels: ethanols, sometimes called 'biopetrol' and which are reserved for petrol-fueled engines; and biodiesels, used in diesel motors.