Fed: AWB slams US subsidies

AAP General News (Australia)
02-10-2000
Fed: AWB slams US subsidies

CANBERRA, Feb 10 AAP - Australian wheat farmers would suffer if the United States government
went ahead with a $25 billion handout to its own growers, AWB Limited said today.

"The US says it's committed to free trade and then considers a $25 billion USDA budget,
which will do nothing to break down the vicious cycle of government support prevalent
in US agriculture," AWB chairman Trevor Flugge said in a statement.

The US farm support for the next financial year, passed by Congress this week, would
guarantee farmer income regardless of the season or the market.

It rewards farmers for setting aside land, subsidises crop and revenue insurance and
offers government-funded growth opportunities.

"The problem is that these supports distort US production and encourage farmers to
grow wheat, even when the price is low," Mr Flugge said.

"This means the market continues to suffer from overproduction which keeps prices down.

"This impacts Australian farmers, whose livelihood is determined solely by the market."

The US was simply showing the world it was only committed to free trade if it was on
their terms, he said.

"The USDA budget is more evidence of this."

AAP lm/mfh/ej/br

KEYWORD: WHEAT

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