AMERICAN senators were mighty upset that their federal agriculture
secretary might have tried to enlist the help of a foreign government
to lobby against an overly rich U.S. farm bill.
Referring to reports that Ann Veneman encouraged Canadian agriculture
minister Lyle Vanclief to lobby Congress against high subsidies, some
angry senators wondered aloud about whose side Veneman was on.
But Congress should learn the farm bill it is now negotiating will
invite international condemnation, not just polite lobbying from Canada.
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Most in Congress now seem blind to the problems they are about to
create.
Senate agriculture committee chair Tom Harkin of Iowa called the bill
“a tremendous victory for the economy of rural America.”
This so-called victory is a defeat for farmers outside America who will
have to contend with price-depressing subsidized overproduction.
It is a defeat for those trying to rid agriculture of government
inspired market distortions.
It is even a defeat for American farmers who need fundamentally
different farm support to face the challenges of the 21st century.
While different in scope, the farm bills of both houses of Congress are
essentially a return to costly programs that have proven incapable of
ensuring a healthy rural society.
They support farmers’ income by enhancing prices for basic commodities
such as wheat, soybeans and corn.
This encourages American farmers to maximize returns by boosting
production and discourages them from exploring more sustainable,
market-based opportunities.
This creates surpluses that ensure grain prices stay low, generating
calls for even more farm aid.
To cope, farmers around the world plead with their own governments for
support programs.
It is a vicious circle.
American politicians must be congratulated for an apparently sincere
desire to help rural constituents. But someone must point out
forcefully the error of the way they are going about it.
Veneman and her boss, George Bush, have argued that farm bills are too
costly, especially the Senate version with its heavy spending over the
next five years. But they have not offered much in the way of a more
enlightened alternative.
It is time for America’s friends to act.
Canada, Australia, Brazil and the rest of the Cairns Group must tell
the U.S. that it can’t lecture others about farm programs while
shoveling new money into market-distorting policies at home.
If friendly words don’t work, actions might.
Brazil and Argentina are already preparing a World Trade Organization
challenge of the legality of American soybean subsidies.
Canada and other Cairns members have similar issues and should not be
afraid to act.
