Australian Trade Agreement Endanger US Dairy Farms

[RichZ]

I can only tell you what I've read in the various dairy farming publications that I get. All of the national dairy organizations are treating this VERY seriously, and are asking ALL memebers to start a letter writing and e-mail campaign immediately.

It isn't so much fresh milk that they're worried about as milk products, of all kinds used by the food industry. Most people don't realize that a very large percentage of milk that dairy farms produce are not used as fresh milk but various dairy products. Also, most people don't realize that the prices that dairy farms now get for milk are the same as they were in the 1970's, even though the cost of milk to the consumer has gone up many, many times. Most dairy farms are barely surviving, it won't take much to push most out of business.

 

[bcarter]

<font color="blue"> Most dairy farms are barely surviving, it won't take much to push most out of business. </font>

This is true enough... I went to college in VT at a time when there were more dairy cows than people in the state...and it wasn't THAT long ago! Almost all of the farms around Burlington VT that I was familiar with have been sold and developed. I had several friends in school that grew up on dairy farms - they were all adamant about NOT taking over the farm since farming dairy cows was way too much work for way too little return.

 

[Knight9]

Interesting current article on the current status of the Australia - USA FTA.

FTA Article

Kevin

 

[fivestring]

"US sugar and dairy producers have warned that increased imports from Australia would have a devastating effect on their industries, which currently benefit from substantial import protection." By Doug Palmer January 29, 2004 - 12:28PM

Why do they benefit from protection when other industries don't? That doesn't seem fair.

 

[RichZ]

Thanks for the article, Kevin!!

 

[RichZ]

Gary, I don't know about other industries, but it is in America's best interests to protect the farming industry from outside imports, for many reasons:

1. If we let our owns farms go out of business, we loose the ability to feed ourselves. Then all our food most be imported.
2. In this age of terrorism, how can we ensure that imported foods are safe.
3. If all our food is imported, then we have no control on how it is grown or what is in it.
4. What will happen to all of the farmland from the farms that go under? Will they be developed, will the land errode away? Farmland is conserved when it is under production.

 

[fivestring]

By the looks of the article, it appears that the dairy industry is the last one that has protection.
We know that some beef and other meats are imported.
A lot of our "summer-type" vegetables come from other countries.
Even a lot of pasta is imported.
To me, it just seems as though world-trade is here to stay. To me, it's just like the welfare system... a lot of folks don't like it but it ain't going away! /forums/images/graemlins/mad.gif
I hope it's not the dairy and sugar industries fearing competition.
As seen in other threads about imports, American consumers want Rolls Royces at Ford Focus prices.

 

[jimg]

Just to change the subject ever so slightly...you make a very good pt about farming and its financial returns. I just read a very interesting report about farming and land prices in the southeast. The report claimed that in the not so distant future (for some its here today) that many farms in that region will never be able to raise a crop that will turn a profit. The reason is land prices. When factored into a proper cost analysis theres no way a farmer can turn a profit. (In NE I think that time has come and gone. Land prices are way more than anything but a hobby farm can justify.) This article advised that most farmers decide its better to sell out than continue operating or perhaps use the land in a nonag way. Amazing isnt it? All that said to say this...Im not sure the problem is w/ someone else as much as it is w/ us. Unless we can come to grips w/ our own appetites and expectations this trend will continue. In the end it will even out b/c all systems want to settle on some equilibrium but the ride there isn't going to be pretty. So, in sum I'm not so sure this agreement is as much of a threat to diaries as our own attitudes about agriculture and societal expectations.

 

[daedong]

G'day

Today many Australians are not happy, "free trade Agreement"
the general view here is that the US are the winners in this and we the looses. Listening to radio this morning sugar Industry fear for their survival. There were other comments made on air saying we might as well become 53 state of the US.
For all of the emotion that is vented I really think we are a long way from that globle village that is often talked about, everyone still seems to be out only for themselves.
Any comments on that side of the village. /forums/images/graemlins/grin.gif

 

[RichZ]

I agree, Vin, we're all better off WITHOUT this agreement!!!