This appeared today in the Intelligencer (the daily in Lyle Vanclief's home riding for those who don't know)
"U.S. subsidy bill could push Canadian farmers to financial ruin: Vanclief
Belleville Intelligencer
By Derek Baldwin
The Intelligencer
WASHINGTON, D.C. A new draft farm bill promising $73.9 billion in new subsidies for United States' farmers could push Canadian farmers to the brink of financial ruin, warned federal Agriculture Minister Lyle Vanclief Wednesday in an emergency policy mission to the American capital.
On day two of discussions by a committee of U.S. senators and House representatives struck to draft a new farm bill for approval by President George W. Bush Vanclief wasted no time spreading his message that expanded domestic and export subsidies south of the border would have a devastating trade impact for Canada and other nations.
American assistance to farmers is already two-and-a-half times higher than Canadian subsidies, said the Prince Edward-Hastings MP. And even more U.S. government farm cash proposed for the next 10 years would drastically widen the disparity between the two countries because the new funding is over and above this year's projected $108 billion budget of the United States Department of Agriculture (USDA).
By comparison, Canada's highest estimated annual payout to cover disaster relief and crop insurance due to floods and droughts in recent years was roughly $2 billion in 2001, and that included provincial money.
Canada's far smaller population and relative tax base make it impossible for Canada to compete with the funds available to American legislators who are catering to an out-of-control farm lobby bent on "farming the mailbox for handouts, rather than farming the land," Vanclief said.
Flanked by an entourage of Canadian politicians, federal agricultural staff, and farm industry leaders Wednesday, Vanclief trudged on through a 26-hour itinerary of pressing flesh with American reporters, lobbyists, and high-ranking politicians.
He broke from his whirlwind tour of the capital to deliver a late afternoon address at a national agricultural conference of farm leaders from across the United States. Vanclief was to follow a speech by U.S. Secretary of Agriculture Ann M. Veneman, but she pulled out of the engagement. Vanclief did not secure a meeting with Veneman during his visit.
In his speech, however, to 100 conference attendees gathered at the Washington Marriott, Vanclief said several elements in the U.S. draft farm bill are raising eyebrows around the world for fear of an unparalleled escalation in subsidies to prop up American farmers.
Such a move could further upset farm product market prices that are already damaging the family farm's ability to survive, he said.
Vanclief reminded the conference that he signed an important agreement late last fall in Doha, Qatar, with U.S. Agriculture Secretary Veneman and other world agriculture leaders to begin eliminating or reducing subsidies by 2005 in favour of new programs that allow natural forces of the marketplace to dictate prices of crops and livestock.
"Doha was an important step forward for those who support greater international understanding, co-operation and freer trade among nations. But the message we are bringing to you here today in Washington, is that the provisions of the farm bill, as it currently stands, risk moving us backwards," said Vanclief.
"Repercussions of one country's actions reverberate throughout the entire system. And that fallout is all the more significant given the close economic ties between our two countries and given the reality that your country sets the benchmark when it comes to world commodity prices."
Vanclief later told American reporters that the U.S. Congress needs to remain committed to its agreement to set an example, but he said it appears Washington is talking out of both sides of its mouth.
"The concern that is coming very clearly now, and I'm not the only who is saying it, is the concern that United States won't walk the talk in the U.S. that they are talking in Geneva and other areas," said Vanclief. "Our concern is that much of the farm bill will take us back to the bad old days of trade...where we were 15 or 20 years ago."
Vanclief had other concerns stemming from related new provisions in the proposed farm bill, including entirely new direct subsidy funding for peas and lentil crops, labelling of all meat sold in the United States to show the products' country-of-origin. He also had a further proposal that would prevent imported meat from receiving a quality grade from the governing USDA.
As Canadian farmers turn to alternative crops such as peas and lentils to buffer heavy losses due to plummeting grain and oilseed prices, heavy subsidization of the new alternative crops in the United States would hurt farmers once again.
Canada delegation member and NDP federal agriculture critic Dick Proctor fully backed Vanclief, noting Saskatchewan and other Canadian provinces have moved to peas and lentils to save their farm industry.
Peas and lentils ? dubbed "pulse" crops by Canadian farmers ? are currently not subsidized and demand strong market prices, said Proctor, because there is no government interference in the market for the legume sector. Subsidies, however, in the United States could see U.S. farmers guaranteed a price of five cents more than Canadian farmers are getting for similar crops, making that sector far less competitive.
"This farm bill would be terribly trade-distorting for Saskatchewan, which is where most of the peas and lentils are grown. This is what we have done to compensate for the grain and oilseed falloff. This would just kill us if these subsidies are brought in," said Proctor. "These new crops have been a salvation to our guys. If we were to lose that, people would throw up their hands and it would be the last straw."
Canadian Federation of Agriculture president Bob Friesen also supported Vanclief's Washington blitz to sound the alarm bells among the political set.
"We have to seriously look at how we're going to mitigate the impact of high levels in other countries. We've been very discouraged in talking to farm leaders in Europe and the U.S. when they talk about continuing high levels of spending. Clearly, here in Washington, it doesn't look like they have any intention of pulling back," said Friesen."
"U.S. subsidy bill could push Canadian farmers to financial ruin: Vanclief
Belleville Intelligencer
By Derek Baldwin
The Intelligencer
WASHINGTON, D.C. A new draft farm bill promising $73.9 billion in new subsidies for United States' farmers could push Canadian farmers to the brink of financial ruin, warned federal Agriculture Minister Lyle Vanclief Wednesday in an emergency policy mission to the American capital.
On day two of discussions by a committee of U.S. senators and House representatives struck to draft a new farm bill for approval by President George W. Bush Vanclief wasted no time spreading his message that expanded domestic and export subsidies south of the border would have a devastating trade impact for Canada and other nations.
American assistance to farmers is already two-and-a-half times higher than Canadian subsidies, said the Prince Edward-Hastings MP. And even more U.S. government farm cash proposed for the next 10 years would drastically widen the disparity between the two countries because the new funding is over and above this year's projected $108 billion budget of the United States Department of Agriculture (USDA).
By comparison, Canada's highest estimated annual payout to cover disaster relief and crop insurance due to floods and droughts in recent years was roughly $2 billion in 2001, and that included provincial money.
Canada's far smaller population and relative tax base make it impossible for Canada to compete with the funds available to American legislators who are catering to an out-of-control farm lobby bent on "farming the mailbox for handouts, rather than farming the land," Vanclief said.
Flanked by an entourage of Canadian politicians, federal agricultural staff, and farm industry leaders Wednesday, Vanclief trudged on through a 26-hour itinerary of pressing flesh with American reporters, lobbyists, and high-ranking politicians.
He broke from his whirlwind tour of the capital to deliver a late afternoon address at a national agricultural conference of farm leaders from across the United States. Vanclief was to follow a speech by U.S. Secretary of Agriculture Ann M. Veneman, but she pulled out of the engagement. Vanclief did not secure a meeting with Veneman during his visit.
In his speech, however, to 100 conference attendees gathered at the Washington Marriott, Vanclief said several elements in the U.S. draft farm bill are raising eyebrows around the world for fear of an unparalleled escalation in subsidies to prop up American farmers.
Such a move could further upset farm product market prices that are already damaging the family farm's ability to survive, he said.
Vanclief reminded the conference that he signed an important agreement late last fall in Doha, Qatar, with U.S. Agriculture Secretary Veneman and other world agriculture leaders to begin eliminating or reducing subsidies by 2005 in favour of new programs that allow natural forces of the marketplace to dictate prices of crops and livestock.
"Doha was an important step forward for those who support greater international understanding, co-operation and freer trade among nations. But the message we are bringing to you here today in Washington, is that the provisions of the farm bill, as it currently stands, risk moving us backwards," said Vanclief.
"Repercussions of one country's actions reverberate throughout the entire system. And that fallout is all the more significant given the close economic ties between our two countries and given the reality that your country sets the benchmark when it comes to world commodity prices."
Vanclief later told American reporters that the U.S. Congress needs to remain committed to its agreement to set an example, but he said it appears Washington is talking out of both sides of its mouth.
"The concern that is coming very clearly now, and I'm not the only who is saying it, is the concern that United States won't walk the talk in the U.S. that they are talking in Geneva and other areas," said Vanclief. "Our concern is that much of the farm bill will take us back to the bad old days of trade...where we were 15 or 20 years ago."
Vanclief had other concerns stemming from related new provisions in the proposed farm bill, including entirely new direct subsidy funding for peas and lentil crops, labelling of all meat sold in the United States to show the products' country-of-origin. He also had a further proposal that would prevent imported meat from receiving a quality grade from the governing USDA.
As Canadian farmers turn to alternative crops such as peas and lentils to buffer heavy losses due to plummeting grain and oilseed prices, heavy subsidization of the new alternative crops in the United States would hurt farmers once again.
Canada delegation member and NDP federal agriculture critic Dick Proctor fully backed Vanclief, noting Saskatchewan and other Canadian provinces have moved to peas and lentils to save their farm industry.
Peas and lentils ? dubbed "pulse" crops by Canadian farmers ? are currently not subsidized and demand strong market prices, said Proctor, because there is no government interference in the market for the legume sector. Subsidies, however, in the United States could see U.S. farmers guaranteed a price of five cents more than Canadian farmers are getting for similar crops, making that sector far less competitive.
"This farm bill would be terribly trade-distorting for Saskatchewan, which is where most of the peas and lentils are grown. This is what we have done to compensate for the grain and oilseed falloff. This would just kill us if these subsidies are brought in," said Proctor. "These new crops have been a salvation to our guys. If we were to lose that, people would throw up their hands and it would be the last straw."
Canadian Federation of Agriculture president Bob Friesen also supported Vanclief's Washington blitz to sound the alarm bells among the political set.
"We have to seriously look at how we're going to mitigate the impact of high levels in other countries. We've been very discouraged in talking to farm leaders in Europe and the U.S. when they talk about continuing high levels of spending. Clearly, here in Washington, it doesn't look like they have any intention of pulling back," said Friesen."