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US farm policy ''cannot wait for completion of trade negotiations,'' says USDA head

WASHINGTON, DC - 02/22/06 - World Trade Organization (WTO) negotiations should not affect the timing of a new US farm bill and farm policy, says US Agriculture Secretary Mike Johanns.

Some farmer groups have asked Congress to extend the provisions of the 2002 farm bill, scheduled to expire in 2007, until a new WTO agreement that would increase foreign market access for US farmers and ranchers is reached.

"I firmly submit to you that such an extension in my judgment is the wrong course for rural America," Johanns told a recent industry forum hosted by the US Department of Agriculture in Washington, DC.

According to Johanns, trade, "while an important factor, is only one element of overall US farm policy, which also includes conservation, energy and research programs."

With a new farm bill, he said, "We have an opportunity to develop farm policy that recognizes that this farm economy has changed."

Johanns said that, with fewer producers and the majority of agricultural production coming from large agro-businesses, the administration must "thoughtfully consider how we deliver support to rural America."

Some agricultural subsidies, which are part of the 2002 bill, are also a subject of the Doha Development Round of WTO negotiations, which started in 2001 and have proceeded haltingly since then. 

The Doha Development Round is scheduled for completion by the end of 2006, but several deadlines in the trade negotiations have been missed in the past.

Johanns said his view should not be interpreted as a sign of his declining enthusiasm for the negotiations, adding quickly that "a successful conclusion of the round is critical."

Completion of the discussions "is the right for the world. It's right for the United States, and it's right for American agriculture in rural America," said Johanns.

But participants in the WTO talks missed several earlier deadlines, and some at the forum voiced their skepticism that the 2006 deadline would be met.

"If we can't see some very substantial progress and concrete negotiating solutions by July, it is likely to be years before this negotiation is concluded," said Andrew Stoler, a former US trade negotiator now a professor of economics at the University of Adelaide, Australia.

Johanns said that half of all farm income comes from specialty crops, which receive no subsidies under farm policy set by the 2002 farm bill.

According to Elizabeth Becker, former New York Times trade correspondent, economic development and global health experts also are calling for changes in the farm bill because of what they believe are the harmful effects of agricultural subsidies.

"If the farm bill of 2007 bears a close resemblance to the one it replaces, the United States could find itself in a difficult position in the world of trade, without a lot of allies," she said.

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