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Americans must demand fair trade to save farming
By Klodette Stroh, Wyoming farmer, The Billings Gazette
February 5, 2001
 
Most of us enjoyed sitting in front of our televisions and watching American athletes competing in the Olympic games. U.S. sports officials made sure the games followed the rules and U.S. sportsmen and women were treated fairly.

As a farmer, I compare agriculture with the Olympic games. U.S. athletes and their physical talent are involved in Olympics the same way that U.S. farmers and their ability and knowledge of growing food are involved in agricultural trade. They both are competing in an international arena. I wish our farmers would be treated with the same set of rules when they compete against the foreign farmers.

I am talking about the North American Free Trade Agreement and Uruguay Round Agreement. U.S farmers are not competing against foreign farmers; they are competing against foreign treasuries.

Sugar situation

Lets compare the U.S. sugar situation with foreign countries sugar policies. According to the USDA, out of 170 countries that produce sugar, 110 subsidize their sugar production, consumption and trade in some way. This makes sugar one of the most heavily subsidized and distorted markets in the world.

The so-called world price for sugar is not a fair price because it is set well below the cost of production.

The U.S. sugar and sweetener industry consists of 52 percent corn sweetener, 28 percent cane sugar, and 20 percent beet sugar. Sugar beet and sugar cane farmers spend $500 to $700 dollars an acre to produce sugar. Since the 1996 farm bill and the North American Free Trade Agreement have been in effect, the prices of barley, beans, corn, sugar and the majority of other U.S. commodities have plunged to historic lows.

Commodity prices By law, the U.S. sugar program operated at no cost to taxpayers, which means American sugar farmers did not receive any subsidy check for their crop. Last year (2000) because of the flood of sugar entering from Canada and Mexico under NAFTA, the prices of sugar dropped so low that USDA paid our sugar farmers to destroy 100,000 acres of sugar beets to reduce the excess sugar in the market.

The U.S. market is already over-supplied. Our government is holding 800,000 tons of forfeited sugar plus 75,000 short tons of sugar imported last year from Mexico stored at U.S. bonded warehouses. Under NAFTA, Mexico may ship up to 250,000 metric tons of their net surplus production each year from Oct. 1, 2000, to Dec. 31, 2007.

If we suspect any unfair ruling against one of our athletes in international games, we make sure to stop and correct the problem. My question is, why arent we taking any action to save our farmers?

Agribusiness accounts for 21 million U.S. jobs, over $160 billion in annual revenues, and over $43 billion in annual exports. U.S. consumers spend only 9 cents out of every dollar for food. West Germany spends 20 percent of its income on food, Spain, 20.1, and Venezuela, 36.9 percent of their income for food, according to USDA statistics.

In 1996, Congress intention was to reduce the nations budget. Lawmakers said that implementing the freedom to farm bill and killing commodity programs would save the American people $13 billion by the end of the year 2002 and that farmers would be in good financial shape.

However, what has happened is that from the start of the 1996 farm bill and NAFTA to the end of 1999, the government spent $64 billion and last year again the U.S. Congress set aside $7 billion dollars for low commodities prices and disaster aid to farmers. There is no sign of saving money for taxpayers.

Every year more and more farmers are having farm auctions. The average age of an American farmer is 55.

America agriculture is worth fighting for; I am asking all the taxpayers in this country to help save our farmers and our farmlands. There is a for sale sign on the flag and we are having more of our assets bought up by foreigners. Were on the way to becoming a colony again!

Klodette Stroh farms sugar beets near Powell, Wyo. She is water commissioner for the Shoshone Irrigation District and Park and Big Horn County sugar chairwoman for Women Involved in Farm Economics.