CORN GROWERS SAY FAILURE TO REACH WTO AGREEMENT IS GOOD NEWS FOR FAMILY FARMERS Real WTO Agenda Was To Eliminate Farm Programs
WASHINGTON, DC...December 6, 1999---American Corn Growers Association (ACGA) President Keith Dittrich, a corn producer from Tilden, Nebraska, witnessed the collapse of trade talks this past Friday as part of the World Trade Organization (WTO) meeting in Seattle. While U.S. negotiators pushed for a reduction in tariffs on agricultural commodities, they also pushed for reductions in farm supports in other countries proposing "significant reductions in farm subsidies both here in the U.S. and abroad."
"In no way would this have been a good agreement for American agriculture," stated Dittrich. "This discussion was really an attempt to dismantle farm programs here and around the world. This agreement did not address the rights of every nation to develop their own national farm policy. It did not take into account the differences in monetary, environmental, and social policies and standards of living of our trading partners."
The ACGA believes that family farmers should not be pitted against their foreign counterparts to the advantage of multinational grain exporting and processing companies. Farm programs must be allowed to exist to encourage fair prices if family farm agriculture is to survive. Hopefully our negotiators will take a different approach next time and recognize the uniqueness and multifunctionality of the family farm agricultural system.
While the ACGA encourages expanded export markets for corn, exporting domestic production below cost of production levels does nothing to help U.S. farmers. This is especially true with the only real growth in corn utilization coming from the domestic marketplace.
"Without increases in farm price support levels, farm gate prices will stay at current historic lows. This trade agreement being pushed by the U.S. would have kept low prices in place for years to come," added Dittrich.
A recently released chart by the ACGA showing key indicators of the farm sector covering the last 25 years, shows that major reductions in farm price supports and several major trade agreements have not improved exports of basic commodities, including corn.
"Instead of chasing pie in the sky trade deals that have not boosted farm exports nor worked to the advantage of family farmers, the Administration and Congress should address major changes to the current farm program. This would have a genuine positive affect on farm prices and farm income," concluded Dittrich.:
