April 29, 2004

American Corn Group Calls For Review Of US Farm Subsidies

The American Corn Growers Association said it is time to rethink U.S. agriculture policies after the recent ruling from the World Trade Organization against the U.S. cotton subsidy program.

Details of the report remain confidential, but a Brazilian trade official said in news reports that he was pleased with the preliminary ruling. Brazil alleges that U.S. subsidies are directly responsible for the continued high levels of U.S. cotton production, reports said.

"We need to move away from subsidies and toward a policy that supports a fair price for farmers," Keith Dittrich, farmer and ACGA president, said in a press release.

Recent analysis indicates that the elimination of U.S. subsidies will not help and that such a policy change would devastate U.S. farmers and reduce prices for some commodities worldwide, Dittrich added.

"What would help is a policy to improve prices in the U.S., a world price setter for many commodities, and thereby help farmers worldwide," he said.

A research report from the Agricultural Policy Analysis Center, titled "Rethinking U.S. Agriculture Policy: Changing Course to Secure Farmer Livelihoods Worldwide," concludes that if global farm subsidies are eliminated, family-based agriculture will continue to spiral downward because of continued low prices, Dittrich said.

"Farmer-oriented policies and international cooperation are the real solutions," he said.