MOOSE JAW, Sask. – Farmers in both Canada and the United States are waiting for new federal agriculture policies.
Wish lists and suggestions have been made, and Canadian agriculture ministers met last week in Whistler, B.C., to discuss the next agricultural policy framework.
The 2007 U.S. farm bill likely won’t look much different than the 2002 version, said an American economist.
Joe Outlaw, from Texas A & M University, pegged the chances of major changes at less than 25 percent.
“The reason is because there’s no money to change to anything else,” he told the recent Farming For Profit? conference.
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He said some proposals never stood a chance of going forward and some were never intended to. One suggested hiking loan rates and target prices and would have been “absolutely a slap” with regard to world trade compliance.
One proposal advocated an account system similar to Canada’s.
Outlaw said he believes the 2007 bill will still contain some direct payments to farmers.
Chuck Moss, an economist from the University of Florida, said there could be a reduction in payment caps in the next bill, which would also cause compliance issues.
Both Americans said support for corn will continue despite the boom in ethanol production.
“Corn yields keep rising but prices aren’t,” Moss said.
Outlaw said if oil prices go below $30 US a barrel, corn-based ethanol will be in trouble and prices will drop.
National Farmers Union president Stewart Wells said Canada’s agricultural policy is substantially different than its neighbour’s and that’s because Canada doesn’t have one.
“It’s my view that what we’ve got is a trade policy,” he said.
Legislated marketing tools such as the Canadian Wheat Board and supply management are examples of that policy. They are always attacked at world trade talks.
“Nobody is attacking patent protection,” he said.
“It’s a tool, too.”
Ian Wishart, vice-president of Keystone Agricultural Producers, said agricultural policy should reward farmers for their land stewardship.
“We need a mechanism that pays back to producers when you do the right things,” he said.
