We are blessed in the United States with the safest, most abundant, most affordable food supply in the world. Americans pay just 10% of their income for this blessing, less than developed and developing countries alike, including the United Kingdom, Sweden, France, Australia, New Zealand, Italy, Germany, Japan, Spain, Israel, Mexico, South Africa, and India to name only a few. Believe it or not, the average American can pay for his or her entire year’s food bill by February 5 of that year, the day known as “Food Checkout Day.” That’s just 36 days of income to pay for a whole year of food.
And, as taxpayers, what do we as Americans to pay for the public policy that fosters all this? Just pennies per meal. In fact, U.S. farm policy costs only about one half of one percent of the total federal budget. And, not only is U.S. farm policy important to national security, ensuring a reliable domestic food supply, but it is also vital to a strong rural and urban economy with the food and fiber industry creating 25 million jobs, producing $3.5 trillion in economic output, and accounting for 15% of U.S. Gross Domestic Product.
As the December 17, 2003 issue of The Wall Street Journal (“Farm Belt Becomes Driver for the Overall Economy as Prices Rise, Spending Spreads to Tractors, Trucks”) notes, “The present boom is proving that agriculture still matters in the U.S. Rising farm incomes are helping ease the blow of the loss of manufacturing jobs in the Midwest States.” The article then quotes the chief economist of a major U.S. bank who states, “The farm sector is a significant source of strength in the U.S. economy.” Finally, the article reveals another fact that Minnesota farm families have known all along, “For consumers, the farm boom shouldn’t increase their food costs significantly. The prices farmers are paid are usually a tiny part of the cost of making food; processing, packaging, and transportation are all becoming bigger expenses.”
All this is important because it illustrates that when America’s farm families do well, so does America. But, without a strong safety net for American agriculture, when our nation’s farm families struggle, the hard times can be felt throughout our entire economy. That’s why I successfully led bipartisan efforts in the U.S. Senate in my first year in office to stop any cuts or changes to the farm safety net provided under the 2002 Farm Bill and that’s why I will continue to work to ensure that Washington keeps faith with America’s farm families and honors its contract under the 2002 law.
But, all this begs the question: why do our farm families need a safety net at all? The answer, in part, lies with a world market that is today neither free nor fair. For example, when the world looks at America, it sees U.S. tariffs averaging about 12%. Meanwhile, when American farm families looks at the world, they see an average tariff of about 62% -- or 5 times as much. And when Europeans, for example, look at help to U.S. farm families, they see about $49 per acre. But, when our farm families look at European subsidies, they see a whopping $309 per acre – or 6 times as much.
Unfortunately, this kind of disparity is not the exception in the world today but the rule, and we cannot afford to unilaterally disarm America’s farm families in the face of these factors totally beyond their control. That’s why future trade agreements are so critical and why we must move forward to level the world playing field.
But, the safety net must also be there whenever these important efforts fall short of achieving fairness and that’s where U.S. farm policy authorized under the Farm Bill comes in. For Minnesota, the stakes are high. Minnesota ranks in the top 10 among States for the production of nearly every commodity that can be produced in our climate -- including corn, soybeans, wheat, oats, barley, sunflowers, dry edible beans, hay, potatoes, sugar beets, flaxseed, canola, sweet corn, green peas, wild rice, milk, beef, hogs, eggs, turkey, honey, and mink – and owes fully one-third of our overall State economy to agriculture.
As President Bush once said, “Our nation owes a debt of gratitude to our farmers and ranchers for helping to ensure stability in our economy, for providing food products that amply meet all our citizens’ needs, and for representing what is best about America. They show the character and values that have made this country strong, values of love and family, faith in God, and respect for nature.”
I could not agree more and I pledge to stand shoulder to shoulder with Minnesota’s hard working farm families as long as I have the privilege to serve Minnesota in the United States Senate. As a kid from Brooklyn, New York and former mayor of St. Paul, I might seem like an unlikely champion for American Agriculture. But, my wife likes to remind me and so I like to remind others that converts make the best advocates – and that’s how I see myself: A strong, committed advocate for Minnesota’s and all our nation’s farm families. If you would like to learn more about U.S. farm policy and the importance of agriculture, please log onto http://agriculture.house.gov/fact.htm where you can download your own free copy of “The Facts on U.S. Farm Policy.”
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