Headlines:

News Exclusives Lawmaker's Turn Photo GalleryMisperception Musings
Commodity Corner Farm Life Policy Library Rural America Headlines

Washington Post Farm Policy Stories: A Case Study in Urban Legend: Part 2

by Jeff Harrison, of Combest-Sell and Associates

AgWeb.com

The Post's Problem with Direct Payments Is In Conflict with Its Problem with LDPs and Its Views on Conservation and the WTO.

During consideration of Freedom to Farm, policymakers argued that, by making direct payments to producers without regard to what or whether they produced a crop, producers would plant for the marketplace and based on what was best for the conservation of their land, rather than for government payments, and thus direct payments would be both less market and trade distorting and good for the environment.

In fact, direct payments have been reported by the U.S. as green box payments under WTO rules, meaning they are non-trade distorting and therefore not subject to disciplines or limits under world trade rules.

The Post welcomed the reform. However, the concern among farmers then was that, by unlinking payments from price and production, those whose aim it was to ultimately end farm policy in this country would eventually argue the payments are tantamount to a giveaway: something for nothing. Farmers were also concerned that direct payments might be consumed by higher rental rates or the landowner might simply decide against renting the land and pocket the payments.

The farmer trusted the government.

But, despite the very best of intentions of lawmakers, to one degree or another, all these concerns have been realized. Yet, today, Doha Round negotiations aim to further limit so called trade distorting support in favor of the kind of decoupled payments, like direct payments, that the Post seems to have supported before it opposed. And even slight planting restrictions, such as the general prohibition on planting fruits and vegetables on acreage for which payments are received, have been struck down by the WTO.

As debate commences over the 2007 farm bill reauthorization, some are pressing producers to move even further in the direction of so-called green box payments that are made without relation to the risk the producer faces.

Given the history, and now punctuated by the Post stories, the wariness of farmers is understandable.

Printed With Permission.







View More Facts >

Enter your email address below to receive our newsletter:

Add Remove
Send as HTML
 


Click Here to view the Photo Gallery and/or email us your farm photos to post on the web site.

View Available RSS Feeds
What is RSS?

Policy Library
Radio Downloads
Photo Gallery
Useful Links
Link to Us
HOME | ABOUT FPF | POLICY LIBRARY | NEWSLETTER | LINKS | RSS | CONTACT US

Copyright © 2007 - All Rights Reserved FarmPolicyFacts.org

Site Design eNews Builder/Insight Commerce -