MISSISSAUGA, Ont. – The border skirmishes in United States northern plains states over Canadian agricultural trade are symbols of an intense political battle under way in the United States over the future of farm policy, says a well-known American agricultural economist.
David Downey, director of the Centre for Agricultural Business at Purdue University, said last week the poor farm economy and low commodity prices are leading farmers to challenge the American government decision to cut farm supports and protectionism.
“Right now, we’re under a lot of test in the U.S. marketplace about whether or not dismantling of government support programs for farmers is really going to stick,” he said.
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The U.S. farm bill approved in 1995 set the country on the path of getting the government out of farm subsidies over a seven-year phase out.
It is scheduled to end in 2002, when market prices are supposed to take over.
But Downey said there is a growing backlash from embattled northern state farmers who are taking it out on visible Canadian imports.
“It was easy to reform farm programs when prices were high but now that they are low, there is a tremendous outcry to bring something back.”
Pressure in Congress to announce an aid package this autumn of $5 billion or more is part of the backlash, he said.
Final try
Downey speculated this border action and farm aid effort may be seen as one of the last gasp campaigns of those who preferred the old system of heavy government involvement in U.S. agriculture.
“Most people I know feel there will be short-term pressure like this for help but it will not reverse the trend to freer agriculture,” he said.
