ROB MCCLENDON: EVERY FIVE
YEARS, CONGRESS WRITES A
NEW FARM BILL LEGISLATION
THAT IS RESPONSIBLE FOR
PUMPING BILLIONS OF
DOLLARS INTO FARM STATES
LIKE OKLAHOMA.
MONEY THAT COVERS
EVERYTHING FROM FOOD
STAMPS TO FARM SUBSIDIES.
AND WHILE JUST A FRACTION
OF THE TOTAL COST OF THE
FARM BILL, IT IS THE FARM
SUBSIDIES THAT MANY
IN THE DEVELOPING WORLD
BELIEVE ARE KEEPING WORLD
COMMODITY PRICES
ARTIFICIALLY LOW.
CREATED DURING THE
DUSTBOWL DAYS BY PRESIDENT
ROOSEVELT, FARM SUBSIDIES
WERE A WAY TO SAVE
THOUSANDS OF SMALL FARMERS
ON THE BRINK OF DISASTER.
SINCE THEN TENS OF
BILLIONS OF DOLLARS HAVE
FLOWED INTO FARM COUNTRY
TO CONTROL COMMODITY
PRICES, WHILE ALSO HELPING
FARMERS THROUGH THE LEAN
TIMES.
JEFF KREHBIEL: WHAT WE
NEED TO KEEP IN MIND
IS FARM SUBSIDIES WERE
ORIGINALLY ESTABLISHED TO
INSURE A DOMESTIC FOOD
SUPPLY FOR THE UNITED
STATES.
AND THAT'S WHY
THEY'RE THERE TODAY.
ROB: LESS THAN TWO PERCENT
OF AMERICANS ARE NOW
INVOLVED IN PRODUCTION
AGRICULTURE.
YET FARMERS REMAIN A
POWERFUL FORCE IN OUR
NATION'S CAPITOL.
WHEN THE WHITE HOUSE
PROPOSED LOWERING FARM
PAYMENT CAPS BY ONE-THIRD
FOR THE NEW BUDGET, FARM
GROUPS RALLIED, AND THE
PROPOSAL NEVER GOT OFF THE
GROUND.
TOM COBURN: FIRST OF
ALL, WE CAN'T USE PRICE
SUPPORTS ANY MORE IF WE
WANT TO COMPETE
IN THE WORLD.
IF WE TRULY WANT TO HAVE
OPEN AGRICULTURE EXCHANGE,
TO REALLY BENEFIT THE
AGRICULTURE COMMUNITY IN
THIS COUNTRY, WE'RE GOING
TO HAVE TO GET AWAY FROM
THAT.
MOST OF OUR AGRICULTURAL
GROUPS ARE FARMERS, ARE
UNDERCAPITALIZED.
SO, WHY DO WE HAVE
PRICE SUPPORTS?
BECAUSE THEY CAN'T MAKE IT
THROUGH THE NORMAL CHANGES
IN THE MARKET, MOST
FARMERS I TALK TO WOULD
MUCH RATHER HAVE A MARKET
SITUATION WHERE THEY DON'T
HAVE TO DEPEND ON
ANYTHING FROM THE
FEDERAL GOVERNMENT.
BUT WE LIVE IN A GLOBAL
WORLD, SO WE'VE GOT TO
HAVE EITHER A GOOD TRADING
SYSTEM, OR WE HAVE
SOMETHING THAT ALLOWS
THEM TO COMPETE.
ROB: COMPETITION
INCREASINGLY COMPLICATED
BY A GLOBAL ECONOMY
WORLDWIDE, NO INDUSTRY
IS MORE REGULATED AND
MANIPULATED THAN FOOD,
TARIFFS, TAX IMPORTS
COMING INTO COUNTRIES,
WHILE FARM SUBSIDIES
SUPPORT EXPORTS GOING OUT,
A DYNAMIC THE WORLD TRADE
ORGANIZATION SAYS HELPS
RICH NATIONS, WHILE
HURTING THE POOR.
IN WEST AFRICA,
COTTON IS VITAL TO
THEIR LOCAL ECONOMY.
LABOR IS CHEAP HERE, JUST
ABOUT A DOLLAR A DAY.
BUT FARMERS STILL STRUGGLE
TO MAKE A PROFIT,
SOMETHING THEY BLAME ON
WESTERN FARM SUBSIDIES
THEY BELIEVE KEEP WORLD
COTTON PRICES UNNATURALLY
LOW.
MATT MUELLER: WHAT WE WANT
IS TO STOP SUBSIDIES.
SO THE GOVERNMENT SHOULD
NOT PROVIDE SUBSIDIES, SO
THAT WE ARE ON EQUAL FOOT
REGARDING THE MARKETS.
ROB: UNLIKE IN THE U S,
FARMERS HERE RECEIVE NO
HELP FROM THE GOVERNMENT.
TO SURVIVE THEY GROW FOOD
CROPS FOR THEIR FAMILY,
AND COTTON FOR CASH,
EARNING, IN A GOOD YEAR,
ONLY ABOUT 300 DOLLARS.
MUELLER: THE WORLD MARKETS
SHAPE AND HURT ALL OF US.
ROB: BACK IN OKLAHOMA,
MATT MUELLER IS PREPARING
TO PLANT ANOTHER COTTON
CROP.
IN OKLAHOMA, IT IS COTTON
FARMERS THAT RECEIVE SOME
OF THE LARGEST FARM
SUBSIDIES, AMOUNTS
MUELLER BELIEVES
CAN BE MISLEADING.
MUELLER: THE SUBSIDIES
WE RECEIVE ARE BASICALLY
PASSED ON THROUGHOUT THE
ECONOMY, SO THAT WE CAN GO
BUY JOHN DEERE TRACTORS;
SO THAT THE GUY WHO MADE
THE JOHN DEERE TRACTOR,
MAKING UNION WAGES, CAN
KEEP HIS JOB; SO THAT WE
CAN BUY OUR CHEMICALS THAT
KEEP MONSANTO AND THE
INVESTORS IN MONSANTO AND
THOSE COMPANIES INVOLVED.
WE BASICALLY TAKE THAT
MONEY AND PUT IT BACK
OUT IN THE ECONOMY.
AND IF YOU TAKE THE LEGS
OUT FROM UNDER
AGRICULTURE; IF WE DON'T
HAVE A SAFETY NET TO
OPERATE WITH, AND
THEREFORE WE CAN'T STAY IN
BUSINESS, THERE IS GOING
TO BE A LOT OF THE
AMERICAN INDUSTRY AND
BUSINESS THAT'S GOING
TO TAKE A HIT AS
WELL; BECAUSE WE ADD
TREMENDOUSLY TO
MANUFACTURING JOBS
AND SUPPORT JOBS.
ROB: WELL IF USDA
PROJECTIONS ARE RIGHT,
THE ACTUAL COST OF FARM
SUBSIDIES COULD
DECREASE DRAMATICALLY
IN THE COMING DECADE.
HIGH OIL PRICES LAST YEAR
SPURRED DEMAND FOR BIO
FUELS, WHICH IN TURN,
RAISED CROP PRICES TO
RECORD HIGHS, VIRTUALLY
ELIMINATING THE NEED FOR
PRICE SUPPORT PAYMENTS AND
PROMPTING OPPONENTS OF THE
FARM SUBSIDY PROGRAM TO
RENEW THE CALL FOR THEIR
TOTAL ELIMINATION.
YET, MANY IN FARM COUNTRY
SAY ALL YOU NEED TO DO IS
LOOK AT THIS YEAR'S
RECORD LOW WHEAT CROP TO
UNDERSTAND THE UPS AND
DOWNS OF FARMING, AND
BELIEVE IT WOULD BE
UNWISE TO "BET THE FARM"
ON AN ECONOMIC FORECAST.
