10 - Orono Weekly Times, Wednesday, November 20,2002 ^ Agriculture of Rich Nations Drive Developing Countries into the Dust By Agriculture and Agri- Food Minister Lyle Vanclief Recently I had the honour to address students, professors and dignitaries at Harvard University on the topic of subsidies subsidies and the hugely detrimental detrimental affect they have on fanners' ability to make a living. living. It was not the first time I had delivered this message to an American audience, but this time I took a slightly different different approach; broadening the argument against subsidies by putting their global impact into perspective. In the past, my argument was put forward in an attempt to get subsidies down for the sake of the Canadian farmers I represent. This time I noted that while massive subsidies by the European Union, the United States and Japan caused hardship for Canadian farmers, they caused starvation starvation for many farmers in developing countries. Even in the high-subsidy countries, it is clear that funnelling funnelling taxpayer dollars to producers in the form of subsidies subsidies is just not working. It perpetuates perpetuates a cycle of dependency. dependency. It turns farmers into tax- dollar junkies who wind up farming the mailbox rather than their fields. The subsidies get capitalized into the value of the land or the farm business business and - surprise - they can't exist without them. The fact is, subsidies do nothing to increase the opportunities opportunities farmers have. They depress prices by encouraging overproduction and they widen the gap between have and have-not farmers around the world. Essentially, the economies of developing countries - such as are found in Africa - are much more dependent on agriculture agriculture for employment and income than developed countries. countries. In many developing countries, over half the population population produces food for a living, living, which they would like to sell at a reasonable price. 2002 ONTARIO UNIOR CITIZEN OF fUE YEAR AWARDS Deadline - Nov. 30th, 2002 Contact this community newspaper for details. Viewpoint However, they can't do this in a global market where subsidies subsidies in developed countries stimulate production and drive commodity prices down. By taking action that hurts such a large sector of developing developing countries' economies, developed countries are making making it even harder for developing developing countries to make the investments they need to move forward. The effect of trade-distorting trade-distorting subsidies is overwhelming and long-lasting. But, unlike droughts or floods, subsidies are a man-made disaster and it should be possible to find a man-made solution. However, because traditional traditional policies perpetuate a cycle of dependency, they are very difficult to change. And it makes it difficult for one country to act alone. Lawmakers in the U.S. have experienced this recently. After putting forward a very courageous paper on reforming reforming global agriculture at the World Trade Organization, they buckled under pressures from producers and introduced introduced a farm bill that institutionalizes institutionalizes domestic subsidies for the next six years. In the end, the U.S. could not walk the walk. It couldn't break the cycle of dependency. dependency. Political pressure forced policy-makers into locking in much of their emergency payment payment support given to farmers in recent years, effectively guaranteeing crop farmers a certain revenue per bushel. It also increased the number of commodities supported that way. It has never been more clear, or necessary, to make real and pronounced reform in the global agricultural community. community. This has become a lot more than a means to a better life for some of the world's farmers, it has become a question question of life or death in many cases. If all trade-distorting agricultural agricultural support were eliminated eliminated tomorrow, there would be significant gains, both for developed countries and for many commodity-producing developing countries. The Newcastle farmer president of Royal Agricultural Winter Fair magnitude of the gains to developing countries is measured measured in many billions of dollars dollars more in income per year. My department, Agriculture and Agri-Food Canada, estimates estimates that the impact of cutting cutting support to agriculture in half would benefit developing countries by approximately four billion dollars U.S. Much of this gain would be derived by developing countries reducing their own support to agriculture. As I have mentioned, our current subsidy problems were man made. That means that we can undo the damage if we act now. We cannot afford, nor can fellow farmers in some of the world's poorest nations afford, to wait for some vague future date for reduction and elimination of subsidies. The world's developed developed countries need to act now for the betterment of all farmers. Nicholas Stern, Chief Economist of the World Bank, puts the argument for reduction reduction of subsidies into clear terms. Mr. Stem has estimated that the average cow in Europe receives about $2.50 a day in subsidies, and that the average cow in Japan receives nearly $7.00 a day. In contrast, 75 per cent of the people in sub-Saharan Africa live on less than $2.00 a day. I cannot sum up this argument argument better than with the words used recently by Prime Minister Jean Chrétien: "Canada calls on developed nations to make the elimination elimination of such subsidies a top priority." If you have any comments about this column, or other topics you would like to see addressed, please don't hesitate hesitate to contact me at: http://www.agr.ca/contacts/em ailmin_e.phtml Mr. Don Rickard, 5th generation generation of Rickards to be farming Ceresmore Farms on Highway 2 between Bowmanville and Newcastle was the president of the Royal Agricultural Winter Fair this year and last. Rickard was in constant demand during the 10 days of the annual fair of fairs held in Toronto in the beging of November. Rickard came on board at the Royal 12 years ago, and helped make it in his estimation estimation the best indoor agricultural agricultural fair in the world with exhibitors from 60 countries. Rickard says his favourite part of the Fair is seeing the kids enjoy themselves, whether they're part of a 4-H club showing a lamb or riding a horse in the show ring. Don Rickard was busy conducting conducting interviews last Friday at the fair. Many of the kids who come to the Royal have never seen livestock before, and Rickard says its pretty special to see them observing these animals for the first time. Having presided over the 79th and 80th Fair, Rickard becomes past president next year. Rinske Easa: "I am only a block away!' mmÊÊÊÊMÊÊÊ Sutton Group Dynamic Direct Line: 905-404-3862 Office: 905-697-1700 E-mail: rinskeeasa@rogers.com Thinking of Selling or Buying Real Estate? Please, feel free to call your neighbourhood Sales Representative, Rinske Easa not intended to solicit properties currently listed i£* * W Pi Orcmo Country Me ^ Full Menu 4 \v ÿ Main Street., Orono, Ontario • 983-9009 |H r P Lyle Vanclief, Minister, Agriculture and Agri-Food Canada Sir John Carling Building 930 Carling Avenue Ottawa, Ontario K1A 0C5 Or you can write to meal: If | (TtyOTtO Hey, Mom! Wondering about drugs in school? A free new kit from Parent Action on Drugs can help. PAD'S Parent Action Pack gives the facts about alcohol and drug abuse. How to recognize the signs. How to reduce the danger. Plus new ways to talk to your kids about the risks. Call for a free kit today. 1-877-265-9279. Or order on-line at www.parentactionondrugs.org. Tfie Orono Weekly Times will publish its 5,000-issue run on December 4t k Copies will be delivered to till fiomes in Orono, Newcastle, Newtonville, Kendal and areas east of Bowmanville, Businesses wishing to advertise in tfiis special edition should call tfie Orono Weekly Times office at (905) 983-5301, parent action drugs I'rmnllon. tiilui'allon. Support.