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.