The American Soybean Association (ASA) has presented its views to Senator Barack Obama on key issues affecting US soy farmers, which include international trade, farm policy, tax, energy and environmental policies.

 

ASA feels that trade agreements are the best way to open global markets to exports of US products, therefore the organisation strongly supports the Colombia, Panama, and South Korean Free Trade Agreements (FTA). ASA believes that these FTAs will create new export opportunities for US soy and livestock producers, but it is concerned by the possibility of reopening the highly successful North American Free Trade Agreement (NAFTA).

 

ASA president John Hoffman said Mexico and Canada are their largest soymeal markets, and Mexico is also the second largest market for US soy and soy oil.

 

"Reopening or renegotiating these markets would erode the benefits US producers and consumers are enjoying. This will result in lost sales and revenue that US farmers cannot afford," Hoffman said.

 

ASA also supports the renewal of Trade Promotion Authority (TPA) to enable the next administration to continue to negotiate trade agreements under the absence of a WTO multilateral agreement.

 

Hoffman said ASA is prepared to see trade-distorting farm support programmes reduced to improve trade liberalisation, but importing countries with high tariffs on agricultural products must take comparable steps to opening their markets to US exports.

 

On farm policy, ASA backs the enactment of the 2008 Farm Bill and is currently working with other farm organisations and the USDA to ensure that the best income safety net is offered to farmers, especially in times of low prices or low yields.

 

ASA supports tax policies that will allow farms to be passed on to the next generation of family farmers. These policies include exemptions from estate taxes of US$5 million for each spouse and accelerated depreciation of farm assets.

 

ASA also strongly supports tax policy that promotes the growth of renewable and bio-based industries, Hoffman said, adding that the extension of biodiesel tax incentive is essential in expanding domestic diesel fuel supplies and refining capacity. However, this support for biofuel which takes away corn and soy supplies from the livestock industry, may not sit well with certain agricultural associations and companies that are already upset with the US' pro-biofuels policies.

 

Hoffman said with the current strain to meet food, feed and fuel needs, acres in the Conservation Reserve Programme (CRP) that are not environmentally-sensitive should be returned to production as their contracts expire.

 

ASA believes that the US must ensure that US agriculture remains economically viable and that US soy producers are able to compete with foreign production, therefore it is vital that a voluntary, non-regulatory approach be maintained toward agriculture. Increased fuel, natural gas, and fertilise costs that may result from a cap and trade programme could be significant. An offset allowance programme may benefit the agriculture sector but it is important not to allow the gains to be mitigated by rising energy and input costs.

 

The US exports nearly one-half of its annual soy production, with soy products accounting for more than US$12 billion out of a nearly US$90 billion worth of agricultural shipments, according to Hoffman.