Newsroom
2002
May 10, 2002
U.S. Farm Bill insulates American farmers from market
signals; lowers prices for Canadian farmers
Winnipeg - The CWB today called on Prairie political
leaders meeting in Regina to work with the federal government to
find ways to level the playing field for Canadian farmers. The
marketer of Prairie-grown wheat and barley warned that cereal
grain prices will continue to be pressured by the bloated U.S.
Farm Bill expected to receive presidential approval next
week.
The six-year U.S. Farm Bill will add at least $45 billion US in new program spending bringing total support to $111.5 billion US. The Congressional Budget Office noted the bill could add as much as $57 billion US in new price supports if lower crop estimates were used.
"Canadian farmers are seeding right now in response to market signals. Our neighbours to the south, however, remain completely insulated from the market and will be so for the next six years," said Ken Ritter, Chair of the CWB's farmer-controlled Board of Directors.
Ritter noted that the lion's share of the increased government support will go to farmers with the remainder flowing to landlords, input suppliers and machinery dealerships.
"Increased government support will influence input application decisions, cropping decisions and farm investment decisions by changing farmers' perception of risk, their ability to obtain credit and their ability to invest in new technology. All of these factors will push productivity to levels beyond what the market would normally dictate. This bill will ensure American farmers continue to add to existing surpluses of wheat, corn and special crops, resulting in depressed prices for these commodities in Canada," he said.
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.