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Johanns - No more subsidies

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Mike

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U.S. Agriculture Secretary To Push for End to Farm Subsidies

Johanns also plans to discuss beef trade during WTO meeting in China

By Kathryn McConnell
Washington File Staff Writer

Washington -- All members of the World Trade Organization (WTO) should place elimination of agricultural subsidies high on their trade agendas, according to U.S. Agriculture Secretary Mike Johanns.

Johanns told reporters in Washington July 6 that farm subsidies do not meet the needs of an increasingly global market economy.

"The day has arrived for the elimination of subsidies," he said.

The agriculture secretary said President Bush's July 6 challenge to the Group of Eight nations (G8) to create a new balanced trade regime to benefit Africa was "right on target."

Bush spoke after he met with Danish Prime Minister Roul NyrupRasmussen in Lyngby, Denmark, in advance of the annual meeting of the heads of state of the G8, which comprises Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Russia. The meeting is taking place in Gleneagles, Scotland, July 6-8.

Johanns will travel July 9 to China for a WTO "mini-ministerial" meeting of agriculture and trade ministers to discuss ending subsidies and a variety of other issues. He said he is confident discussions will advance the development of a "reformed" WTO trade agenda before trade ministers from the 148 WTO members meet in Hong Kong in December. The reform agenda would be based on three pillars: eliminating trade-distorting export subsidies, reducing domestic supports and increasing market access.

Among issues Johanns plans to discuss with Chinese officials is China's use of sanitary and phytosanitary (SPS) standards, which vary among provinces, and their effect on farm trade.

The secretary also plans to discuss how the United States can help meet China's evolving food needs, which are being driven by a growing middle class, he said.

Since China joined the WTO in 2001, agriculture trade between the country and the United States has increased 240 percent, making China the fifth-largest U.S. farm export market, with particularly strong sales of soybeans and cotton, Johanns said.

The potential for further growth of U.S. farm exports to China is "very real," he added.

The safety of U.S. beef is another issue Johanns plans to address. In meetings with Chinese officials and in bilateral meetings with agriculture ministers of Japan and Korea, he will push for the reopening of the countries' markets to U.S. beef, he said. The markets were closed to U.S. beef following the discovery of the first of two cases of bovine spongiform encephalopathy (BSE), also known as mad cow disease, in the United States, one in December 2003 and another in June.

Johanns said results of USDA's BSE "expanded surveillance program" implemented in June 2004 in response to the first known U.S. case of the disease are "encouraging." The program, which has significantly increased the number of cows throughout the country tested for BSE, is providing a scientifically based body of information showing that U.S. cattle are "remarkably healthy," he said.

Johanns said that the program meets international testing standards and proves that testing every head of cattle is unnecessary.

The "firewalls" of the early-identification and containment system work well, Johanns said, adding they ensured that the a second case of BSE discovered in an aged cow in the United States in June could not enter the food supply.

"U.S. beef is safe," Johanns said.

The secretary said he expects Taiwan will resume importing U.S. beef because USDA has provided it with requested epidemiological information.

Johanns then plans to travel to Madagascar to sign an agreement on providing technical assistance to the country to help it meet its Millennium Challenge Account (MCA) goals for boosting agricultural and rural development. In April, Madagascar was selected as the second country to receive MCA aid. MCA is the Bush administration's supplemental aid program designed to reward countries that demonstrate a commitment to economic and social reforms.

Johanns then is scheduled to travel to Senegal to address ministers from 37 African nations at a meeting on the African Growth and Opportunity Act. The U.S. law, which became effective in 2000, offers incentives for African countries to continue their efforts to open their economies and build free markets.


Created:06 Jul 2005 Updated: 06 Jul 2005

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feeder

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Is the gov't. going to stop throwing money at the railway system to keep them afloat and all their other pet projects? They stop one subsidy they better stop them all,including giving money to foreign countries to help them out.
 

Tam

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feeder said:
Is the gov't. going to stop throwing money at the railway system to keep them afloat and all their other pet projects? They stop one subsidy they better stop them all,including giving money to foreign countries to help them out.

I thought the US Porducers don't get subsidies :shock: :wink:
 

CattleCo

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"Johanns told reporters in Washington July 6 that farm subsidies do not meet the needs of an increasingly global market economy.

"The day has arrived for the elimination of subsidies," he said. "

The Sec. of Ag is in Disneyland!! I agree with Feeder lets stop ALL subsidies....starting with FOREIGN AID that has worked so well in keeping the World Safe :roll: AND I WANT THE TAX BREAKS CORP AMERICA GETS !!
read Alan Guebert's column in the June 24 edition of the Illinois Agri News!! Does he hit Johanns right between the eyes!! :lol:
 

feeder

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Livestock producers don't get subsidies, grain farmers do if prices are below set value.
 

mrj

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Cattle producers in the USA do not get subsidies. Yes, there may be some cost sharing of some improvements such as fencing to protect fragile stream banks, etc, but no direct subsides just for raising cattle. Nor do I believe there should be. On the other hand, what other industry ASKS their customers what they will pay for our products rather than figuring our cost of production and amount of profit needed, then TELLING the buyers what they must pay us?

Subsidies to agriculture are not just to help farmers, but to keep food prices low for consumers. Think about it.....farmers comprise something under 2% of the population.....100% of the population is a consumer of food.....contrast the numbers of votes from the two groups. Bingo!

MRJ
 

Mike

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Producers get infrequent help during droughts, floods, etc. I don't know if that would classify as a "subsidy" though.
 

CattleCo

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Livestock producers don't get subsidies, grain farmers do if prices are below set value.

BULL FECES......WHAT DO YOU THINK $1.85 CORN IS NITWIT!!! $5.00 Soybeans........Drought payments to Ranchers, etc..........Cattle Feeders and Ranchers get a subsidy every day on the back of Americas's Grain Farmers :roll: :roll:
Give me a F*&**&ing break!
 

Brad S

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Perhaps there should be import duties on beef from countries with socialized medicine - you know, just to level the playing field.
 

Big Muddy rancher

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Brad S said:
Perhaps there should be import duties on beef from countries with socialized medicine - you know, just to level the playing field.

You wouldn't like to pay the taxes that go with scoialized medicine. But if you really think it is a good Idea why don't you guys the world leaders in everything have it so no one is turned away from getting medical care.
 

CattleCo

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Brad,
Good idea! As for CAFTA.....that deal is bad for grain farmers..great for cattle feeders. Here's the deal.........Brazil will funnel ethanol through a CAFTA country to further depress Corn prices. More fruits and veggies will come into the US depressing those prices. OF course to hear these morons supporting this CAFTA BS we will sell all our US produced goods and BEEF to these CAFTA countries......ONE PROBLEM THOSE FOLKS IN THOSE COUNTRIES ARE POOR!!!!!!!!!!!!!! NO MONEY!!!!!!!!!!!!!!!!!! :roll:
What a bunch of loonies we have in and out Washington! :mad:
 

Bill

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What a couple of weeks. Finally admitting that yes Virginia there is BSE in the US and that subsidies need to end. How many blue moons will there be in the summer of 2005? :lol: :lol: :lol: :lol:
 
A

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I heard an interesting one on the radio the other day- North Dakota Wheat Farmers have been challenging the Canadian subsidized wheat dumping in the US for years ...Last month they won the challenge and the judges ruled against the Canadian Wheat Board- but now the Canadian Government is going to pay the millions in court costs that Canadian Wheat Board spent :???: Is that subsidizing the subsidy :lol:

The radio announcer went on to report that the North Dakota wheat farmers were on their own as far as court costs and that no government entity was going to pick their costs up......
 

Bill

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Oldtimer said:
I heard an interesting one on the radio the other day- North Dakota Wheat Farmers have been challenging the Canadian subsidized wheat dumping in the US for years ...Last month they won the challenge and the judges ruled against the Canadian Wheat Board- but now the Canadian Government is going to pay the millions in court costs that Canadian Wheat Board spent :???: Is that subsidizing the subsidy :lol:

The radio announcer went on to report that the North Dakota wheat farmers were on their own as far as court costs and that no government entity was going to pick their costs up......
Where do you come up with is crap Oldtimer or do you find it necessary to start the day with a lie about Canada?

http://www.cwb.ca/en/topics/trade_issues/wheat_relations.jsp

News releases
2005 CWB news releases
June 7, 2005

CWB wins decisive victory in battle to open U.S. border to wheat

Winnipeg – The CWB welcomed today's ruling by a NAFTA panel, which found that imports of Canadian hard red spring wheat cause no injury to U.S. producers. The panel ruled in favour of the CWB's appeal of the 2003 injury determination by the U.S. International Trade Commission (ITC), which led to the imposition of a prohibitive 14.15-per-cent tariff on imports to the U.S. of Canadian hard red spring wheat.

"Today's ruling is a clear and unequivocal victory for western Canadian wheat farmers," said Ken Ritter, chair of the CWB's farmer-controlled board of directors. "We are confident that the ITC will now do the right thing and move quickly to lift the tariff so that we can resume marketing our high quality wheat to our American customers."

The NAFTA panel upheld the CWB's argument that Canadian hard red spring imports do not affect wheat prices in the U.S. "The Panel concludes that the ITC's finding that increased volumes of subject imports depressed prices is not supported by evidence." (page 40). The full text of the panel's ruling can be found on line at www.nafta.org (main index page) or click here for the panel report (PDF format).

The CWB will continue to uphold the right of western Canadian farmers to access the U.S. market, Ritter said. "We believe the existing trade agreements between Canada and the U.S. should be worth more than the paper they are written on," he said. "The U.S. market is an important one for Prairie grain farmers and we will not let some well-financed special interest groups shut us out of it."

Since the Canada-U.S. free trade agreement was signed in 1989, American special interest groups have launched a total of 14 trade challenges against the CWB. In none of these previous challenges has the CWB been found to distort trade. The challenge ruled on today was initiated by the North Dakota Wheat Commission in 2002. (see attached backgrounder).
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less the costs of marketing, to Prairie farmers.
14 times OT and not a single win for the whining US wheat grower. Reminds me a lot of R-Calf.
 

Jason

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Sandhusker said:
Anybody with a Farm Credit loan is getting a subsidy.

Another lie, those loans are just the same as through any bank. Farm credit has to make a profit, just not the huge profits banks make. Interest is charged at market rates and payments are due on regular schedules. The only benefit to dealing with them is they specialize in farm loans. You also pay fees for renewals and loan set up, just like the banks.
 

adventureman

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The issue isn't which American producers receive subsidies, the issue is that they distort free trade. Either you are capitalists or not, you can't have it both ways.

PS Socialized medicine has given Canada the rank of #30 in the world, even Columbia beat us, and we only spend 1% more of our GDP on health care as compared to the US.
________
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mrj

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Boys, relax! I heard Bush and Johanns as saying to other nations (Europe in particluar) which pay large subsidies, that the US will cut out subsidies WHEN or AFTER every nation does the same.

BMR, where in the USA have you known of anyone to be turned away from hospitals for needed medical care? I believe anyone can get medical care if they want/need it and the hospitals have to make up the loss on those of us who pay, and pay and PAY! Add to that our additional taxes for the government mandated medical programs!

MRJ
 

Sandhusker

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Jason said:
Sandhusker said:
Anybody with a Farm Credit loan is getting a subsidy.

Another lie, those loans are just the same as through any bank. Farm credit has to make a profit, just not the huge profits banks make. Interest is charged at market rates and payments are due on regular schedules. The only benefit to dealing with them is they specialize in farm loans. You also pay fees for renewals and loan set up, just like the banks.

That is a lie? BULLSH$#! I don't like being called a liar. :mad: Do some research and tell me how Farm Credit is funded verses "any bank". :? Compare the tax structures of Farm Credit verses "any bank". :? :? Define for me a GSE. :? While you're learning, post for all of us the "huge profits" banks make. Compare that with Farm Credit's profits. :shock:
 

Brad S

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Would you say the redefined bankrupcy laws were a subsidy to banks or did bankers buy them fair and square? Yuck yuck


I see what you are talking about FCS, but banks usually take pretty good care of themselves in the legislature.
 

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