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DUMPING & SUBSIDIES

DUMPING & SUBSIDIES. Peter Rosset. Are Subsidies Good or Bad?. 1995-2002 U.S. Farm Subsidies were $114 billion dollars Wealthy farmers receive more U.S. Farm Subsidies in 2003: Top 1% of farmers -- $214,088 Top 20% of farmers -- $9, 916

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DUMPING & SUBSIDIES

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  1. DUMPING & SUBSIDIES Peter Rosset

  2. Are Subsidies Good or Bad? • 1995-2002 U.S. Farm Subsidies were $114 billion dollars • Wealthy farmers receive more • U.S. Farm Subsidies in 2003: • Top 1% of farmers -- $214,088 • Top 20% of farmers -- $9, 916 • In the next decade taxpayers will pay $190 billion dollars for subsidies

  3. TNCs benefit from buying crops cheap, then dump them on poor countries • Small farmers can’t complete with low prices of subsidized, imported food & are driven out

  4. An Analysis of Price & Subsidies • The enemy is low prices, not subsidies • Low price • Overproduction • Dumping • Low price • Subsidies don’t trigger low price; low price triggers subsidies • When farm prices rise, subsidies drop

  5. Small-scale & family farmers need price supports • Supply management is critical • In 2002, crops exported below the cost of production: • Wheat - 43% • Soybeans – 25% • Corn – 13% • Rice – 35%

  6. Concentration • Another cause of low price is concentration of control over the food industry • Integrated Agri-food Conglomerates have interest in paying as little as possible for crops & charging consumers as much as they can • TNCs dictate price & influence policy

  7. Subsidies are Not the Problem • We need to ask: • What are they used for? • Who receives them? • What is the cost?

  8. From the perspective of small-scale farmers, subsidies to large corporations are BAD • From the perspective of small-scale farmers, subsidies to small farmers are GOOD

  9. The Costs: • From 1997-2002 U.S. lost 90,000 farms under 2000 acres • Large farms over 2000 acres increased by 3600 • An epidemic of farmer suicides across America, often disguised as farm machinery accidents

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