As farmers wrap up spring planting, consider how strange the landscape would look to "windshield farmers" if just every other row was planted. While the mental picture may seem odd, it helps illustrate how critical farm exports are to Iowa farmers. That’s about how many soybean acres end up in overseas markets. Meanwhile, Iowa’s livestock producers export the equivalent of one out of every 10 cattle and hogs.
Iowa farmers are among the most efficient and productive food producers in the world. What isn’t consumed here at home must compete in overseas markets. America’s bounty feeds the world. And as a farm-state lawmaker, I want to see Iowa and Iowa farmers reap the economic benefits of our rich agricultural bounty.
According to the USDA, exports account for 20 to 30 percent of farm earnings. If an Iowa farm commodity suffered a retaliatory strike from one of our trading partners, it’s quite possible an Iowa farmer could have to make do with only three-fourths of the normal take-home pay.
Most farmers who have closely followed the farm bill debate understand my vigorous opposition to the new six-year farm law signed in mid-May by the president. The detrimental impact created by the new farm law could crush what’s left of the institution called the family farm. During bicameral negotiations between House and Senate lawmakers, key pro-family farmer amendments I won during Senate debate were dropped. My efforts to cap federal farm payments to $275,000 and ban packer ownership of livestock were scrapped by the negotiators.
Another major shortcoming with the farm bill is its sure-fire failure to comply with international trade rules. The "safety net" in the new farm bill puts farmers at greater risk over the long term. Already our international trading partners are crying foul over the new U.S. farm bill. They say it will lead to excess production and depress worldwide market prices. A chorus of America’s leading farm export destinations, denounce the farm bill as blatant protectionism, accusing the U.S. of reneging on long-standing efforts to reduce world farm subsidies.
Iowa farmers can rest assured our trading partners won’t flinch at taking aim at Iowa-exported commodities for retaliation if the new farm law pays out more than the $19.1 billion annual farm subsidy limit established under world trade rules. This means that Iowa farmers stand to lose the most because Iowa has the most productive and efficient farmers in the world and we export our product to countries who need it most. There is nothing that says our current trading partners can’t go somewhere else to get the product they need. And once these exports markets are lost, they may be hard to regain. Countries like brazil, for example, stand ready to ship our trading partners all the soybeans our trading partners need if U.S. beans are no longer competitive due to retaliatory tariffs.
Whether it’s soymeal destined for the Philippines, poultry to Russia, corn syrup to Mexico or pork and soybeans to China, Iowa farmers are ripe targets for retaliation. Consider the sizable market share lost by Iowa beef producers who are shut out of the EU due to unfair trade barriers. Earlier this year, Russia banned U.S. poultry exports, and Mexico temporarily put the brakes on corn exports. Thanks to aggressive U.S. intervention, these trade bans were suspended. When China threatened to ban imports of a billion dollars worth of U.S. soybeans, our negotiators spent weeks of intensive negotiations to stop their move. And If the discriminatory tax on high-fructose corn syrup would have stuck, U.S. corn growers would stand to lose $66 million in corn sales and corn refiners an additional $244 million this year alone.
I’m confident in the agricultural products grown, raised and processed in Iowa. Our farm commodities and value-added agricultural products are high-quality and second-to-none. Let American farmers compete in every market for every sale and American farmers will reap the financial rewards.
The bottom line is Iowa farmers are export-dependent. In 2000, Iowa’s farm exports were valued at $3.4 billion, ranking second-highest in the country. And if the new farm program violates our international trade agreements, Iowa farmers will suffer the consequences. It’s that simple.
As the only working family farmer in the U.S. Senate, I understand the reluctance among farmers to depend on Washington for their livelihoods. Unfortunately, this farm bill deepens that dependence and doesn’t help to seek market-opening opportunities overseas. If we are found to be in violation of our trade agreements, it will be the Iowa family farmer who will be the first target for retaliation.