American pulse subsidy still considered possibility

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Published: January 17, 2002

An American presenter at Pulse Days 2002 joked that he was glad Canada

had stricter gun control legislation than the United States.

That’s because part of Tim McGreevy’s speech was about the dicey

subject of U.S. subsidies.

The executive director of the USA Dry Pea and Lentil Council had the

unenviable task of informing the 1,550 farmers attending the event

about the progress he’s made to get pulses included under lucrative

American farm support programs.

The American Farm Bill is up for renewal. The House of Representatives

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and the Senate each have to draft separate versions of the legislation

that will shape U.S. farm policy for the next five to 10 years.

The two versions will become one during a reconciliation process and

that bill will be passed on to president George W. Bush for his

signature.

McGreevy said the House has already agreed on a version that doesn’t

include pulse crops. The Senate is still debating a proposed bill that

includes a market and loan program for pulses.

He is confident the Senate’s version will ultimately include pulses,

and that peas, chickpeas and lentils will be in the final bill that

will be on the president’s desk “with any luck” before April 15.

McGreevy said it’s anybody’s guess how that would affect American

production of those three crops. His personal pie-in-the-sky estimate

is that acreage would soon double or quadruple from 500,000 acres to

one or two million as more farmers add pulses to their rotations.

As things sit now, marketing assistance and loan deficiency payment

programs kick peas, lentils and chickpeas out of rotations because

producers can minimize their risks by producing other crops.

McGreevy said the farm bill is not the only American government policy

constraining the growth of the pulse industry. Trade sanctions against

Cuba, Libya, Iran, Iraq and Sudan have hurt the industry big time. They

were all consumers of U.S. pulses at one time.

“The total cost to U.S. pulse growers of U.S. trade sanctions is

267,000 tonnes. It’s costing over $50 million a year to the pulse

industry because of our own sanctions on these countries,” he said in

an interview after his Jan. 8 presentation.

But recently there have been signs that support for the embargoes may

be weakening. In November, Cuba bought $20 million of wheat, corn, soy

and rice from the U.S. to make up for losses caused by Hurricane

Michelle.

Cuba said it was a one-time deal, but McGreevy sees it as an indication

that the days of trade sanctions against Cuba may be numbered. He said

the country imports more than 200,000 tonnes of pulses a year, mostly

from Canada.

McGreevy said a ground swell of political support for easing trade

sanctions is beginning to build in the U.S.

“There’s a move in Congress, a lot of it led by pulse representatives

and senators, to try to ease these trade sanctions.”

Tariffs are another constraint that the U.S. pulse industry would like

to see addressed in the new round of World Trade Organization

negotiations.

“Since we export the vast majority of our crop, it is in our best

interest to successfully reduce the trade barriers which exist around

the world,” McGreevy said in his speaking notes.

The U.S. Department of Agriculture estimates that agricultural trade

tariffs average 62 percent around the world. McGreevy hopes the WTO

talks will reduce that average, but he tempers those hopes with a dose

of realism.

“The U.S. pulse industry supports free and fair trade around the world.

We also recognize that WTO successes are often measured in inches

versus miles.”

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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