Showing posts with label US Farm bill 2014. Show all posts
Showing posts with label US Farm bill 2014. Show all posts

No one wants to be a farmer anymore. It's only a matter of time before farmer as a species goes extinct


Farming is wilting everywhere. It's only a matter of time before farmer as a species goes extinct -- AP pic

Some years back, the celebrated Indian President Abdul Kalam was addressing students at an annual event organised by K Govindacharya's Bhartiya Swabhiman Andolan at Gulbarga in Karnataka. He exhorted students to work hard, educated themselves to become doctors, engineers, civil servants, scientists, economists and entrepreneurs. After he had ended his talk, a young student got up and asked why he didn't say that they should also become farmers.

Abdul Kalam was floored. Whatever be his long winding answer, the young student had actually punctured his argument, and at the same time brought out the great bias towards farming.

This incident came to my mind when I was reading this moving essay by a farmer from the United States. Bren Smith, a shellfish and seaweed farmer writes in the New York Times (Aug 9, 2014) Don't Let Your Children Grow up to be Farmers (http://nyti.ms/VeffqD): "The dirty secret of the food movement is that the much-celebrated small -scale farmer isn't making a living. After the tools are put away, we head out to second and third jobs to keep our farms afloat." Accordingly, 91 per cent of all farm households in the US rely on multiple sources of income. This is happening in a country where the Farm Bill 2014 makes a provision for $ 962 billion of federal subsidy support for agriculture for the next 10 years.

Ironically, the stark reality remains hidden in the Year of Family Farms.

Farmers are a dying breed. Writing in the Newsweek magazine (April 10, 2014), Max Kutner says: "For decades, farmers across the country have been dying by suicide at higher rates than the general population. The exact numbers are hard to determine, mainly because suicide by farmers are under-reported (they may get mislabeled as hunting or tractor accidents, advocates for prevention say) and because the exact definition of a farmer is elusive." (Death on the Farm http://www.newsweek.com/death-farm-248127).

Well, what is happening in America is not an isolated development, farmers are dying across the globe.

When some weeks back I said on a prominent TV channel that on an average 2,80,000 people living in rural areas every year have been committing suicide for the past decade in China, the nation was shocked. A lot of concerned viewers called me up and wrote to me wanting to know more about the death on the Chinese farm. According to news report, nearly 80 per cent of the rural people who take their own lives in China are victims of farm land grab. In India, almost 300,000 farmers have ended their live since 1995. Again, like in the US, farm suicides are also under-reported in India with some States now trying to hide them by shifting these deaths to some other categories. Even in Europe, which provides massive subsidy support under the Common Agricultural Policy (CAP), the serial death dance continues unabated. In France, 500 suicides have been reported in a year. In Ireland, in UK, in Russia, and in Australia farmers are a dying breed.

In India, although we keep on saying that agriculture is the mainstay on the economy, in reality it isn't. Employing some 52 per cent of the population, the share of agriculture in country's GDP has been progressively on the decline. It is less than 14 per cent now. I have been saying for long that small farmers have to get into multiple of jobs to keep their chulas burning. Some studies point out to roughly 58 per cent farmers relying on the rural employment guarantee programme (MNREGA), which provides for 100 days guaranteed employment. Still worse, the people who feed the country actually sleep hungry. More than 60 per cent go to bed hungry every night. Nothing can be a worse illustration of the great tragedy on the farm.

It's not because of any unexplained natural calamity or a virus that the farms across the globe are first being hit by recession, and then depression. It is part of global economic design to move farmers out of agriculture, and by doing so to shift food production into the hands of heavily subsidised and environmentally-destructive agribusiness companies. It is generally believed that for any country to grow economically, the share of agriculture in the GDP must be brought down. In US, agriculture is only 4 per cent of its GDP. In India, it is less than 14 per cent now. By the end of 2020, I am sure it would be somewhere in the range of 10 per cent. Small scale agriculture is therefore being deliberately stifled.

In my understanding, the unwritten economic prescription is to make farming non-viable so that farmers are left with no other choice but to quit. In a quest to keep food prices low, the economic paradigm support large agribusiness conglomerates. The demise of the farmer therefore is predetermined. It's only a matter of time before the farmer as a species goes extinct.

Further reading:

1. Displacing Farmers: India will have 400 million Agricultural Refugees
http://www.globalresearch.ca/displacing-farmers-india-will-have-400-million-agricultural-refugees/6127

2. France and India: The Beautiful farms are all but dying.
http://devinder-sharma.blogspot.in/2010/07/france-and-india-beautiful-farms-are.html
   

$ 1 trillion US Farm bill 2014: Business as usual. Subsidising Corporate welfare in the name of farming


An overview of the 2014 US Farm bill

After a lot of dilly-dallying, the US has finally passed the US Farm bill 2014. The earlier Farm bill 2008, which makes budgetary provisions for agriculture and food security, had expired in September 2012. Anyway, with US President Obama putting his signatures on Feb 7, the bill has come into existence. Probably to tide over the push and pulls from political opponents (backed by Corporate interests), this time the bill is for 10 years. The 2014 Farm bill makes a budgetary provision of almost $ 1 trillion ($956 billion to be exact), which includes $ 756 for food security programmes. 

A cursory look at what the bill contains clearly shows that the emphasis once again is on the faulty industrial agriculture. It replaces old subsidies with new ones, raises the minimum price growers receive for certain crops, and of course has cut down the food stamps programme. While signing the bill, Obama said: "This bill helps to clamp down on loopholes that allowed people to receive benefits whether they were planting crops or not. And it saves taxpayers hard-earned dollars by making sure that we only support farmers when disaster strikes or prices drop. It's not just automatic.

But not everyone agrees. Dan Sumner, an economist at the University of California at Davis said: "Those programs could create problems. That’s the kind of assurances that the U.S. government is willing to provide that most farmers in the world, in fact, don’t have access to. With the backing of the government US farmers can produce more and export more. Ultimately, that drives down world prices and it’s a little tougher for farmers in developing countries to compete with that." (New US Farm bill reaps controversy, Voice of Americahttp://www.voanews.com/content/new-us-farm-bill-controversy/1847016.html).  

Bulk of the budgetary allocation is actually for Supplemental Nutrition Assistance Programme (SNAP) that goes to provide food security to an estimated 47 million hungry. Although the SNAP budget has been cut by $ 8.7 billlion from what was earlier proposed, it still shows how crucial is this safety net in a country which calls itself the Mecca of market economy. $756 billion is proposed to be spent in the next ten years on feeding the hungry. Interestingly, the US had objected to India's paltry food security assistance of about US $ 20 billion a year at the recently concluded Bali WTO Ministerial. US finds nothing wrong in its own $ 75.6 billion/year support in the name of food security, but finds the Indian food security initiative to be WTO incompatible !



Regarding the farm incomes, the bill allows farmers to choose between Agricultural Risk Coverage (the Senate Program variable support levels) and Price Loss Coverage (the House program with fixed support levels) on a crop-by-crop basis. According to Daryll E Ray and Harwood D Schaffer of the Agricultural Policy Analysis Centre of the University of Tennessee "If prices remain high for the next 5 years, the ARC will provide most grain farmers with a superior level of coverage. On the other hand, if prices fall and remain there for a sustained period of time, the PLC will provide farmers with the best coverage. For both programs base acres and yields can be updated."

Accordingly "Reference prices for the PLC program are wheat, $5.50/bushel; corn, $3.70/bushel; grain sorghum, $3.95/bushel; barley, $4.95/bushel; oats, $2.40/bushel; long grain rice, $14.00/hundredweight (cwt).; medium grain rice, $14.00/cwt.; soybeans, $8.40/bushel; other oilseeds, $20.15/cwt.; peanuts $535.00/ton; dry peas, $11.00/cwt.; lentils, $19.97/cwt.; small chickpeas, $19.04/cwt.; and large chickpeas, $21.54/cwt.

"It is interested to note that in the previous counter-cyclical program, the target price for corn, barley, and grain sorghum were all the same—$2.63 per bushel. Now the reference price for corn is $3.70 while grain sorghum is $3.95, and barley is $4.95. Not coincidentally grain sorghum is important in House Agricultural Committee Chair Frank Lucas’ state of Oklahoma, while barley is important to House Agricultural Committee Ranking Member Colin Peterson’s northern tier farmers." #

Further reading: 
1.New farm law is bad for Taxpayers and the Environment, Environment Working Group. 

2.What others are saying about the farm bill, Environment Working Group.

3.Finally, a Farm bill. Daryll E Ray and Harwood D Schaffer, University of Tennessee