Canada and Brazil accused the US of giving subsidies
exceeding international agreements by $19,000,000,000 to growers of corn, wheat,
barley, oats and other crops. The World Trade Organization (WTO) started an
investigation December 17, 2007.
A high government subsidy enables US “farmers” to sell their products on the
world market for a fraction of the cost of production, putting many others in a
position of having to sell for less than it costs to grow the product.
After the 1939-1945 war, it was determined that if the free market wouldn't take
everything that was produced, the government would take up the slack in the form
of subsidies to keep the economy rolling. This would prevent a return of the
Great 1930's Depression.
With the advent of more mechanization, small farms were bought out by the larger
farmers and gradually there developed 'industrial agriculture' whose primary
object was profit. The land, the animals, the soil and water became things to
maximize return while profiting from government hand-outs. Low prices enabled
people to buy and excess could be dumped on world markets (or converted to
ethanol).
Today the biggest recipients of support are the corporate farmers and commodity
giants like Archer Daniels, Monsanto, Dupont and many others.
Big losers in this are local communities, no longer producing food and
potentially paralyzed by any kind of disruption in supply. But the real harm of
the subsidy system is to the global economy resulting in world poverty.
Without the subsidy system the price of food in US and EU would have to nearly
double. But the majority of world farmers would prosper from increased income,
their countries would prosper and problems related to poverty, disease and maybe
overpopulation, while not being eliminated, would be greatly alleviated.
Even the minimal change proposed by Canada and Brazil would be a step toward
greater generosity, human fraternity and social justice. It would allow us to go
beyond the immediate economic desires of one part of the world and look toward a
more sustainable course of action for all the people of the world.
