For U.S. farmers, subsidies the best cash crop
BARRIE McKenna
OTTAWA The Globe and Mail
There are few places in the world where farming is a truly free market activity -- least of all the United States.
A new report finds that $62 of every $100 that U.S. farmers earn comes from one level of government or another. In 2009, that added up to a staggering $180.8-billion (U.S.).
"The U.S. continues to provide massive -- sometimes unreported to the World Trade Organization -- support at the federal, state and local government level to U.S. agriculture," said Ottawa trade consultant Peter Clark, who wrote the report for the Dairy Farmers of Canada.
The report identified a number of indirect subsidies to U.S. farmers via programs for irrigation, export credits, nutrition food aid and loan guarantees.
Nearly $20-billion of the $180.8-billion flows to U.S. dairy farmers, or fully half of their revenues, according to Mr. Clark.
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Canada has been shut out of the Trans-Pacific Partnership talks, apparently because it refuses to put these "supply managed" sectors on the table. The United States, Australia and New Zealand have long pushed for Canada to dismantle its tariff regime.