Why pick on the USA?
The EU's agricultural support amounted to about $133 billion, Japan's to $49 billion, America's to $47 billion, South Korea's to $20 billion and Canada's and Switzerland's to $6 billion each. Moreover, in 2003, the British think-tank Policy Exchange found that EU consumers "pay 42 percent more for agricultural products than they would if the system were dismantled. Americans pay 10 percent extra, Japanese more than twice as much.
Who Pays for Farm Subsidies?
Another similar claim:
Rural News - 17/06/2003: Australia low on global farm subsidies list
I dont really agree with the idea that subsidies increase food costs. In reality, I have watched my grocery prices increase substancially when a subsidy is removed. .10 a gallon (milk) subsidy cut resulting in .60 - .80 cent increase for me on the shelf at the grocery store for that same gallon of milk. This was not related to fuel increase, milk production drop, or increased export (that came later).
And as far as poorer countries not being able to compete with large, developed countries? They wont be able to compete regardless of subsidies because they dont invest in their infrastructure, they cant keep from killing each other (generalized statement), and their farmland tends to be at the mercy of the elements (infrastructure issue mostly). Now there are many things I do not know about the details of Africa, Asia, etc, but key issues increasing farm productivity included the Rural Electrification efforts which subsidized Public Utility efforts to wire up these farms. Electricity runs wells, lights, machinery, etc. and very importantly refridgerators. I know what a working windmill looks like and cisterns, cuz they were used around me by the 'old timers. We had a horse drawn field plow that we converted over. I've milked cows by hand (just for the experience). These are the real issues that prevent third world countries from competing. And I watched some of these 'old timers get driven into the ground from self inflicted choices "I dont need these new fangled contraptions".
Related to the above is the migration of the poor to cities for wages. That happened here too and seems to be a problem in China now.
And lately we are watching the food prices soar that have no bearing on subsidies. Is the 'developing' world better off with higher food costs? I dont think so.
