Farm Bill, Commodity Issues, Doha
Farm Bill
Congressional Quarterly writer Catharine Richert reported on Friday that, “For many on Capitol Hill, this week is looking a lot like do-or-die for the farm bill.
FarmPolicy.com
July 30, 2010
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Acreage Anticipation- Part II
Recall that last month (February 22), a Dow Jones news article stated that, “U.S. 2008-09 corn planted area is estimated at 90 million acres and production is seen at 12.81 billion bushels, according to the U.S. Department of Agriculture, which released its grains and oilseeds outlook Friday at its annual Agricultural Outlook Forum.”
Doha, Farm Bill & the CAP
Doha
Yesterday, President Bush and Prime Minister Kevin Rudd of Australia held a joint press appearance at the White House.
In his opening remarks, President Bush stated that, “We spent a great deal of time talking about the economies. One thing we spent time on is talking about the benefits of trade between our two nations, and the benefits of a world that trades freely and fairly. And the Prime Minister was asking me about my views on Doha. I said it’s possible to achieve a Doha round. He, too, believes we should work to achieve a Doha round. However, I informed him that it’s — we’re willing to make serious concessions on the agricultural front, but we expect other nations to open up their markets on manufacturing, as well as services. And to this end, Prime Minister Rudd — Kevin Rudd said that he would be more than willing to help. And that’s — very grateful.” (Audio clip, MP3-0:50).
And Prime Minister Rudd stated that, “As the President has just indicated, we also spoke about the Doha Round. My own view is that if ever the global economy needs a psychological injection of some confidence in the arm, it’s now, and that can be delivered by a positive outcome on Doha. Takes more than two to tango. Takes a lot of people to tango when it comes to the Doha Round — combination of ourselves and the Cannes Group, the United States, the Europeans, Brazil, India, others. But what we have agreed, again, as strong, long-term supporters of free trade around the world, as one of the best drivers of global economic growth, is to work very closely together in the months ahead to try and get a good, positive outcome for Doha — good for our economy, good for the American economy, good for the global economy.” (Audio clip, MP3-0:56).
Implications of High Commodity Prices
Matt McKinney reported in yesterday’s Minneapolis Star-Tribune that, “Fortune smiled on rural Minnesota in 2007, as median farm income soared 73 percent in a year, to $105,000, on runaway demand for corn, milk, wheat and soybeans.
“A University of Minnesota survey of 2,600 farms concluded that it was the most profitable year for the state’s farmers since 1973.
“‘We’re in one of those golden ages of agriculture,’ said Dale Nordquist, associate director of the Center for Farm Financial Management at the university, which does the annual survey.”
Wall Street Journal: “Farm Lobby Beats Back Assault On Subsidies”
Lauren Etter and Greg Hitt reported in today’s Wall Street Journal that, “With grain prices soaring, farm income at record highs and the federal budget deficit widening, the subsidies and handouts given to American farmers would seem vulnerable to a serious pruning.
“But it appears that farmers, at least so far, have succeeded in stopping the strongest effort in years to shrink the government safety net that doles out billions of dollars to them each year.
“‘At some point, you have to step back and ask, ‘Does this make sense for the American taxpayer?’’ says Rep. Ron Kind. The Democrat from Wisconsin sponsored a measure that would have slashed about $10 billion over five years in subsidies — and saw it get crushed on the House floor.”
