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Message to President Obama: Why Trade Will Not Save Rural America

by: Jill Richardson

Thu Feb 04, 2010 at 06:00:00 AM PST


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This excellent response to Vilsack's recent op ed in the Des Moines Register and Obama's State of the Union is cross-posted from Civil Eats with the permission of the author, Paula Crossfield.

Message to President Obama: Why Trade Will Not Save Rural America

February 3rd, 2010  By Paula Crossfield

In Secretary of Agriculture Tom Vilsack's op-ed this week in the Des Moines Register, he recognized that hunger could not be solved by raising production, because production is in fact at record highs. Grappling with how these increases in productivity have not led to increases in profit, he explained that even though we've lost a million farmers in the last 40 years, "income from farming operations declined as a percentage of total farm family income by half." He continued, "Today, only 11 percent of family farm income comes from farming, which may explain why fewer young people go into farming and why many families rely on off-farm income opportunities to keep their farms." Vilsack gets the situation right, but his remedy is wrong. Instead of encouraging diversity and altering the pattern of overproduction which pits large farm owners against small by shrinking margins, the Obama administration's way of dealing with the discrepancy in rural America is through increasing trade.

More below...

Jill Richardson :: Message to President Obama: Why Trade Will Not Save Rural America
In his State of the Union address last Wednesday, President Obama covered a lot of ground. His primary goal was to focus on job creation, but he left out one important occupation-in a nation where the average farmer is 57 years old, we need farmers. He mentioned the obesity crisis, noting that the First Lady would be dedicating her efforts there, and then made this comment about doubling our trade in goods and commodity crops in the next five years:

To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. We have to seek new markets aggressively, just as our competitors are.  If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. And that's why we'll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia.

He has thus far stuck to his word. According to the USDA, $234.5 million is being given to 70 U.S. trade organizations to help promote American food and agricultural products abroad (you can see who this money is going to, from the Cotton Council International, which received a whopping $20 million, to trade reps for perishables like the California Prune Board, which received nearly $3 million). The Farm Bureau is thrilled that this administration is poised to aggressively pursue trade agreement negotiations with other countries as it clearly benefits big producers. So is Republican senator and erstwhile Bush Jr. Secretary of Agriculture nominee Mike Johanns from Nebraska, who had this to say:

With unemployment at 10 percent, we should be pursuing every possible avenue to promote good opportunities for job growth and business investment. Our businesses, farmers, and ranchers produce the highest quality products in the world and deserve an opportunity to compete on a level playing field.

The problem is that places like South Korea have expressed that they don't want our goods if they contain hormones, antibiotics or genetically modified organisms (GMOs). Worse, though, is that our products are not traded on a "level playing field," but instead are sold at an unfairly low prices in developing countries, made falsely cheap by our subsidy system. Developed world subsidies have been the prime barrier to negotiations at the Doha Development Round trade talks, which began in 2001 and continue to this day with no agreement-which many consider a victory for developing nations. And while Obama seeks to cut subsidies in his budget, it will be an uphill battle, especially without a stricter definition for who is a farmer.

Ben Lilliston, Communications Director for the Institute for Agriculture and Trade Policy had this to say about the administration's plan for increasing trade:

The goal of doubling commodity trade is not feasible or wise. This emphasis on export markets is odd given that it runs directly counter to a lot of the Administration's work to support local food systems. And expanding exports would definitely come at the expense of local food systems. The reality is that we've tried to expand agriculture exports for the last 50 years. That goal represents a lot of what is wrong in U.S. farm policy: a push to lower commodity prices-to make us more competitive internationally; an emphasis on just a few commodity crops; and support for large-scale operations over smaller, more diversified farms. An emphasis on exports has benefited multinational agribusiness firms, but not farmers either in the U.S., or in other countries. U.S. agribusiness companies have a several decade record of exporting commodity crops like corn, soybeans, rice and wheat at prices below the cost of production-a practice known as dumping. The result has been devastating to poor countries trying to develop their own food production. The loss of food production in many poor countries is a major contributor to growing hunger around the world. What makes the proposal so strange is that the Administration has to know this is not possible. Even agribusiness companies-who I'm sure love the proposal-know it's not possible to reach.

Here is what trade agreements looks like in action: as a result of the North American Free Trade Agreement (NAFTA), U.S. corn sold cheaper than it could be produced, putting millions of Mexican farmers out of business-simultaneously quashing the diversity of the corn varieties and genetically contaminating locally grown corn with GMOs. As a result, these jobless farmers have made their way across the border to pick fruits and vegetables in America (often in slave-like conditions), or work mind-numbing jobs in slaughterhouses. But NAFTA's destructive legacy runs deeper still. Last October, Mexico was ordered to pay the corn-processing giant Cargill a $77 million dollar fine for imposing a tax on high fructose corn syrup in an attempt to protect their domestic sugar farmers.

Vilsack's op-ed focused on rebuilding rural America. However, when dollars leave the farm community headed to corporate multinationals for seed, chemicals and equipment, and the products produced on the farm are not food but commodities that then leave the community too, how can broadband and increased trade be anything more than band-aids for rural America? In the face of facts like climate change, to which agriculture contributes at least 30% of carbon emissions, decreased water availability and uncertain oil resources, trade veils the real problems facing the food system. What we need is balance: balanced opportunities in rural areas, a balanced ecosystem with diversified crops that feed local populations, and a balanced number of farmers to knit that community together. More farmers means more jobs, more stewardship of the land, and better quality food-and as a result, a thriving rural economy.

Up next, watch for the administration to start pressuring Senator Jim Bunning (R-KY) to release his hold on Islam Siddiqui, Obama's nominee for Chief Agricultural Negotiator, who's [sic] pesticide lobbying past is not behind the pause. Indeed, who else but a Big Ag lobbyist could they get to take on such a mission seemingly bound for disaster?

Paula Crossfield is the managing editor of Civil Eats. She is also a regular contributor to the Huffington Post's Green Page and is a contributing producer at The Leonard Lopate Show on New York Public Radio where she focuses on food issues. She is currently tending a vegetable garden on her roof in the Lower East Side. You can follow her on Twitter.

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Siddiqui... (4.00 / 1)
You know, I stopped following that just after the nomination and kinda sorta assumed he was in already.

What's Bunning's hold about?

Coming soon to a Philadelphia near you!


Bunning (4.00 / 1)
Siddiqui was approved by the Finance Committee (Finance Committee?) December 23, 2009. Bunning's hold is on the floor. I don't know his reasoning. Maybe he just doesn't like the guy's name?

[ Parent ]
It is curious, isn't it? (4.00 / 1)
Hell, Siddiqui's pretty much the Dream Guy for this position of any corporate politician, regardless of party affiliation.  Bunning's obviously not concerned about his pesticide lobbying activities.  Maybe he donated to a Democrat in Kentucky once?

I think you may be onto something with the name.  And even if it's not that, I'd love to hear what Bunning and his people have on the guy.

But thanks anyways to Bunning, for prolonging the appointment!  "Even a broken clock", and all that...

Is it within the realm of possibility to think that maybe Siddiqui can even be defeated?  Nah.  But it's good to have Hope!

Coming soon to a Philadelphia near you!


[ Parent ]
Holds (4.00 / 1)
I wonder how holds really work. Does a group of Senators with similar views, or maybe even the whole conference, get together and decide who will file a hold? Do they draw straws? Does the fact that this is Bunning's hold mean that it really is Bunning who has a particular concern?

[ Parent ]
Great minds, and all that... (4.00 / 1)
I was actually gonna go look all that stuff up later tonight when I get some time.

Heh, I wonder how long it'll be until you need 100 Senators to get anything done in the Senate?

Coming soon to a Philadelphia near you!


[ Parent ]
it's just a standing filibuster (4.00 / 2)
any time the Dems do anything, the R's filibuster. Period. that's all.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
Johanns (4.00 / 2)
Mike Johanns was not only a nominee, he actually was Secretary of the Department of Agriculture, 2005-2007.

correct (4.00 / 2)
and now Sen from Nebraska and on the ag committee.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
Exports (4.00 / 2)
Exports was Vilsack's number one emphasis in a list of six initiatives. The 1996 Freedom to Fail legislation was sold on the basis of the wonders of increasing exports. Agricultural exports did increase, but family farmers got worse off. Neither Vilsack nor Obama has yet indicated how or why re-emphasizing exports will not continue to make things worse. Shape up, guys. Get serious.

As for losing a million farmers in the last 40 years - yes, of course. Driving farmers off the land has been federal policy under a long string of administrations. Is either Obama or Vilsack credibly indicating that this long-standing policy will change? Do they now want to increase the number of family farmers? Do they anticipate that the number of family farmers will continue to decline but (perhaps) at a declining rate? Has any actual goal been established?


re: freedom to fail in 96 (4.00 / 2)
the Asian financial crisis really hurt exports, I think. So that totally screwed over the idea that exports would bring big bucks for farmers for the rest of forever.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
A lesson repeated (4.00 / 1)
when exports fell in 2008-2009, if anyone had been noticing.

[ Parent ]
I'm conflicted by this post (0.00 / 0)
On one hand it's well written, well researched and has a good narrative flow.

However, the author chose to leave out some pertinent data that conflicts with her narrative.

Trade dollars have gone to the corporations via subterfuge from their trade associations.  In his public address Obama specifically pointed out this loophole and called for its closure. Why was this fact ignored?

The Obama Ag budget proposes the biggest wealth transfer in modern history from corporate Ag to needy families. Locavores should be preparing to help Obama take on corporate Ag interest in congress instead of bitching about how USDA has been run by other administrations.

If you want local support for local rural America, it's in the USDA Rural Development fund.  

..."Agriculture Deputy Secretary Kathleen Merrigan recently announced that 28 organizations in 21 states have been selected to receive $4.8 million in grants to spur economic development and create jobs in rural communities. This announcement comes as part of the 'Know Your Farmer, Know Your Food' initiative, a USDA-wide collaboration that will connect people more closely with the farmers who supply their food and increase the production, marketing and consumption of fresh, nutritious food that is grown locally in a sustainable manner."...

This first grant is just the tip of the budget iceberg targeted for local rural America. In discussion with local Ag organizations I was told the biggest impediment to federal funds, is the time it takes to write the grant proposals.  The funds are available!

Obama has been publicly talking about the problem with narratives and beliefs.  If you need to push a narrative, then you leave little room for acceptance of other ideas.  Being an advocate is good--I've been an organic proselytizer for decades--but I know that the US economy is in serious trouble, and we need trade dollars desperately if we are to grow out of this problem.

New industrial equipment takes years to bring on line; Ag products are just one season from the export market.  Ag exports are this country's best chance for immediate trade dollars.

I know several farmers and small businesses that have been working for years to open trade with Korea.  The Koreans have been insisting on 100% GMO free grain. Even the Non-GMO organizations will tell you that GMO pollution is so pervasive that 100% is impossible.  In reality the Koreans are using GMO's as leverage in their trade talks with the US.  Once the big issues are tackled, the GMO problem will be resolved with testing protocols.  

There comes a time when everybody needs to step back and understand that we are all in this problem together, even if the actions of the rich and powerful are to blame for our crisis.  We have to use every option at our disposal to help this country and the world economy to recover.

How about we dial back the narrative a little and decide to work together?


Loophole (4.00 / 1)
please provide that quote. I missed it.

[ Parent ]
wealth transfer (4.00 / 1)
I asked you to back up this assertion when you made the claim previously, and you haven't done it yet. Why do you write this?

[ Parent ]
pertinent data (4.00 / 1)
Which data did she omit? You didn't give any example.

[ Parent ]
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