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Transcript of The Institute for Agriculture and Trade Policy Working to maintain family farm agriculture while...
The Institute for Agriculture and Trade Policy
Working to maintain family farm agriculture while protecting our natural resources.
©2003, Institute for Agriculture and Trade Policy
Canadian government, provinces unite in battle against U.S. farm bill May 13, 2002 Feedstuffs
European Commission Planning WTO Challenge to U.S. Farm Bill May 2, 2002 European Voice
“Brazil announced Tuesday that it will bring forward an action against the United States before the world Trade Organization (WTO) over new subsidies Washington will provide for domestic soy bean producers.” May 7, 2002 Xinhua General News Service
“Warren Truss, [Australia’s] farm minister, has already warned Washington that Canberra would refer the bill to the WTO.” May 2, 2002 European Voice
"If passed, it will inevitably lead to the US breaching its WTO commitments on subsidies.” – New Zealand Trade Negotiations Minister Jim Sutton
May 7, 2002 Press release from the office of Hon Jim Sutton
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1975-79 1980-84 1985-89 1990-95 1996-01 2001 proj.
Price Support Loan Rate for Corn, Wheat and Soybeans, 1975-2001
Adjusted for Inflation, in 2001 dollars
Period (Yearly Average)
$ p
er
bush
el
Source: USDA-ERS, USDA-FSA, and Bureau of Labor Statistic. Data compiled by American Corn Growers Association.
Soybeans
Wheat
Corn
0.00
2.00
4.00
6.00
8.00
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1975-79 1980-84 1985-89 1990-95 1996-01 2001 proj.
U.S. Farm Price for Corn, Wheat and Soybeans, 1975-2001Adjusted for Inflation, in 2001 dollars
Period (Yearly Average)
$ p
er
bush
el
Source: USDA-ERS, USDA-FSA, and Bureau of Labor Statistic. Data compiled by American Corn Growers Association.
Soybeans
Wheat
Corn
What Holds the System In This State Despite Changes in Policy and Events?
Gross
Costs
Net
-100
0
100
200
300
400
500
600
700
1975 1980 1985 1990 1995 2000
Year
Inco
me P
er
Acr
e (
96
$)
Cor
n P
rod
uct
ion
Inco
me
per
Acr
e (9
6$)
droughts floods
freedom to farmdeficiency payments
yield increases
emerging markets
conservation reserve program biotechnolo
gy
Produced by the Sustainability Institute
US Consistently Dumps Ag Commodities
0
5 00
1 ,0 00
1 ,5 00
2 ,0 00
2 ,5 00
3 ,0 00
3 ,5 00
1 9 80 19 85 19 90 1 9 95 20 00 2 0 05 20 10
1 99 7 1 9 98 19 9 9 2 00 0
Figure 4. Actual and USDA projected U.S. corn exports, 1980-2009.
Millionbushels
1980-2000trend
Ac tual
P rojec tions
0
5 00
1 ,0 00
1 ,5 00
2 ,0 00
2 ,5 00
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3 ,5 00
1 9 80 19 85 19 90 1 9 95 20 00 2 0 05 20 10
1 99 7 1 9 98 19 9 9 2 00 0
Figure 4. Actual and USDA projected U.S. corn exports, 1980-2009.
Millionbushels
1980-2000trend
Ac tual
P rojec tions
Actual and USDA Projected U.S. Corn Exports
Actual and USDA Projected U.S. Wheat Exports
0
20 0
40 0
60 0
80 0
1,00 0
1,20 0
1,40 0
1,60 0
1,80 0
2,00 0
1 98 0 1 98 5 1 9 90 1 99 5 2 0 00 2 0 05 20 10
1 99 7 1 99 8 1 9 99 20 0 0
Figure 5. Actual and USDA projected U.S. wheat exports, 1980-2009.
M illionbushels
A c tual
1980-2000trend
P rojec tions
0
20 0
40 0
60 0
80 0
1,00 0
1,20 0
1,40 0
1,60 0
1,80 0
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1 98 0 1 98 5 1 9 90 1 99 5 2 0 00 2 0 05 20 10
1 99 7 1 99 8 1 9 99 20 0 0
Figure 5. Actual and USDA projected U.S. wheat exports, 1980-2009.
M illionbushels
A c tual
1980-2000trend
P rojec tions
Estimated cost of producing soybeans in Iowa,Mato Grosso and Paraná, Brazil. In US dollars.
Inputs Cost per bushel
Iowa Mato Grosso ParanáLand 2.80 0.42 0.84Seed 0.42 0.20 0.20Fertilizer and lime 0.51 1.27 1.25Herbicides and insecticides 0.60 0.66 0.68Labor 0.27 0.09 0.14Machinery 0.67 0.53 0.57Other 0.31 0.29 0.29
Total $5.58 $3.46 $3.98
Source: C. Phillip Baumel, Iowa State
Our South American Competition
“Are you more independent acting alone to contract on a giant company’s terms or working together with your fellow farmers to gain the best terms possible with the giants on the other side of the table?”
Dr. Richard Levins
Agricultural Economist
IATP Senior Fellow
The Institute for Agriculture and Trade Policy
Working to maintain family farm agriculture while protecting our natural resources.
©2003, Institute for Agriculture and Trade Policy
