(spanish version)
New U.S. Farm Bill and Trade Policy Needed
Since the North American Free Trade Agreement (NAFTA) went into
effect in 1994, family farmers in the United States, Canada and
especially in Mexico have felt the negative impacts of declining
prices and the loss of traditional markets. "Export oriented"
describes how U.S. farm programs have been fashioned by giant
agribusiness corporations for many years, but the 1996 Freedom
to Farm Act and the 2002 Farm Bill accomplished their ultimate
goal of eliminating price floors and forcing every bushel produced
on to the market no matter how disastrously low farm prices go.
Because of NAFTA and other "free trade agreements,"
cheap U.S. prices radiate low prices across the globe. Farmers,
north and south, are forced into all-out production for survival.
Government payments only keep the cheap commodity system afloat
while many farmers, despite the payments, abandon their families'
heritage of producing food and taking care of the land.
Further trade liberalization, as promoted by the U.S. through
the WTO, will mean less protection for farmers, while the U.S.
and the EU hypocritically prop up their ever-industrialized agricultural
systems with government payments that are de-linked from production.
(The U.S. projects spending $170 billion over the next ten years.)
The resulting cheap grain and oil seeds are used for manufactured
livestock feed which spread the blight of vertically integrated
livestock factories all over the world. The U.S. intends for the
WTO to force worldwide adoption of genetically engineered food
and seeds, which will encourage further industrialization and
control of food and agriculture by a handful of multinational
corporations. The industrialization of agriculture fostered by
genetically engineered crops will only destroy rural communities
and make affordable food beyond the reach of more of the world's
impoverished citizens.
When the corporate free trade agenda meets resistance in WTO
negotiations, the U.S. tries to accomplish similar ends by pushing
for regional agreements such as the Free Trade Area of the Americas
(FTAA) and the U.S.-Central American Free Trade Agreement (CAFTA).
U.S. dairy farmers fear one such agreement with Australia and
New Zealand since they are already suffering from the lowest prices
in thirty years with very low price supports and increasing illegal
imports of milk substitutes like Milk Protein Concentrates.
U.S. Responsibility
The citizens of the United States need to regain control of farm
and food policy with the intent of creating a sustainable family
farm system and a safe and healthy food supply. We have the history
of good government involvement and the democratic institutions
to make the change. The National Family Farm Coalition is proposing
a new farm bill: The Food From Family Farms Act. This bill would
establish fair farm prices, create a food security reserve so
that bountiful crops won't depress markets, conservation set-asides
to avoid wasteful over production, loans to help farmers own their
land and adopt sustainable farming practices. Most importantly,
The Food From Family Farms Act includes goals of trade cooperation
based on the principle of Food Sovereignty-the right of every
nation to devise farm and food policy ensuring food security in
keeping with its traditions and need for sound social and environmental
goals.
The National Family Farm Coalition and its member groups are
working with their international partners to explain to consumers,
farmers, government officials, taxpayers and the general public
the goal of Food Sovereignty. If agribusiness was required to
pay a fair price for farm products, farm subsidy payments would
not be required. Taxpayer dollars could serve many other important
needs and help balance the budget. The international threat of
corporate free trade policy requires an international grassroots
response and vision of a sustainable family farm system and food
security with safe and healthy food supply-trade cooperation,
Food Sovereignty, not free trade.
Important facts about U.S. agriculture:
•Only 3 agribusiness firms control 82% of the world grain trade.
•Over 73% of the nation's farms share only 6.8% of the market
value of agriculture products, while 7.2% of farms, including
giant feedlots, receive 72.1% of the market value of products
sold. These figures illustrate the growing shift towards large
operations controlled by large agribusiness.
•During the first 7 years of NAFTA, Archer Daniels Midland's profits
went from $110 million to $301 million, while Cargill's net earnings
from 1998 to 2002 jumped from $468 million to $827 million. ADM
and Cargill are two of the main agribusinesses that control corn
trade.
•Since 1984, the real price of food has remained constant, while
the price farmers receive has fallen by 38%. In 1999, farmers
received 21 cents on the dollar from food products, as compared
to 10 years ago, when they received 32 cents. These numbers demonstrate
how consumers, taxpayers and especially farmers are paying the
price so that agribusiness can earn record profits.
International impacts of free trade in agriculture:
•Despite the promises made before NAFTA regarding benefits farmers
would see from free trade, according to the secretary of Social
Development in Mexico, there are now more poor people than ever
before in history. In 1992, 36% of the rural population was "food
insecure". Today that number has risen to 52.4%.
•Since the signing of NAFTA, migration from rural areas has skyrocketed.
Today nearly 500,000 Mexicans per year attempt to cross the border
into the U.S. in search of employment, as opposed to 250,000 before
NAFTA.
•More than 80% of Mexico's poor live in the countryside; corn
producers make up 2 million of those.
•Before NAFTA, Mexico only imported about 156,000 tons of corn
per year. In 2003, they are projected to import over 6 million
tons of corn.
•Between 1996 and 2001, the number of family farms in Canada fell
by 11% due to government policies that support corporate agriculture,
not family farms.
•When adjusted for inflation, net farm income in Canada has fallen
by 24% between 1988 (1 year prior to the Canada-U.S. free trade
agreement) and 2002.
(Updated Dec 15, 2003)
