March 27, 2006

Corn producers in Canada hope for greater subsidies

Canadian farmers are hoping the decision to impose duties on US corn will prod the government into rethinking current subsidy levels for corn farmers.

The CBSA announced the duties on Mar 16, claiming subsidised American corn is dumped in Canada.

The move to impose US$1.65 a bushel was applauded by Canadian farmers, who said it puts a realistic value of corn in Canada.

The US Corn Coalition, however argued that there is no evidence Canadian corn growers were hurt by imported American corn.

The Canadian International Trade Tribunal is expected to make a final injury finding on Apr 18.

Farmers are hoping that the government would allow greater subsidies for corn-growing and are unhappy that subsidies are currently given on an ad-hoc basis, providing little security for farmers.

A US$80 million subsidy promised for the grain and oil seeds is inadequate, farmers say. Furthermore, farmers have not received payments which were originally scheduled for February this year.