I 'read the mail' of some openly red-neck American commentators. (Some of the material 
I get is VERY red-neck, but I want to see what is being circulated.) Nevertheless, I 
will protect the identity of the person (American) who sent me this material. 
 
Here is an article, on the lighter side of redneck, that rings true for Australia.
 
Enjoy.
 
Peter


+++

The fabric of their lives

By 
Jacob Sullum 
November 8, 2003 

During a cross-country drive in July 1989, my car broke down in the Arizona desert 
sometime around noon. My cat, Miles, who had long, black fur, was not pleased. I 
managed to find a phone and call a tow truck, and during the long, slow, 
non-air-conditioned ride to the nearest service station, with Miles panting at my 
side, I had plenty of time to take in the scenery: row after row of cotton.

Since cotton is a water-intensive crop, the middle of a desert seemed a strange place 
to grow it. Similar oddities can be observed in other arid areas of the country where 
the federal government provides farmers with irrigation water at prices far below the 
cost of supplying it. 

But the taxpayer-subsidized water is just the beginning. U.S. cotton farmers also 
receive crop-specific payments that encourage them to grow more than they could sell 
if, like most business people, they had to recoup their production costs. According to 
a 2002 report from Oxfam International, these subsidies amount to nearly $4 billion 
year, or $230 an acre.

By comparison, the market value of America's cotton crop in 2001 was about $3 billion. 
"In an economic arrangement bizarrely reminiscent of Soviet state planning 
principles," Oxfam noted, "the value of subsidies provided by American taxpayers to 
the cotton barons of Texas and elsewhere in 2001 exceeded the market value of output 
by around 30 percent." 

Even with all this help, U.S. cotton farmers insist they cannot make a go of it unless 
the government also pays companies to buy their crop. Based on numbers obtained under 
the Freedom of Information Act, the Environmental Working Group recently posted a 
database on its Web site listing the payments received by companies that export 
American cotton or use it to make yarn, fabric, sheets, towels, or clothing. 

This arrangement, known as Step 2 of the "cotton competitiveness program," has cost 
taxpayers $1.7 billion during the last eight years. The payments have included $107 
million to the Allenberg Cotton Co. of Cordova, Tenn.; $102 million to Dunavent 
Enterprises of Fresno, Calif., and Memphis, Tenn.; and $87 million to Cargill Cotton 
of Cordova, Tenn.

You begin to see how Tennessee gets back $1.26 in spending for every dollar it sends 
to Washington. And these textile companies already benefit from trade barriers that 
restrict foreign competition, at the expense of American consumers and producers in 
other countries who do not have the same clout on Capitol Hill.

Speaking of foreign competition, the cotton subsidies are shameful not only because 
U.S. farmers should have to play by the rules of the market but because this welfare 
program for the well-to-do has a ruinous impact on poor farmers in other countries who 
do not enjoy such largess. By artificially boosting the cotton supply, subsidies 
depress world prices, driving farmers in countries such as Mali, Benin, and Burkina 
Faso out of business. Oxfam estimates that U.S. subsidies cost cotton-growing African 
countries $300 million a year. 

For American cotton farmers (whose average net worth is about $800,000) the subsidies 
may be the difference between growing cotton and growing something else, or between 
farming and pursuing a different line of work, assuming they can't compete without the 
government's support. For African farmers who earn something like $800 a year, the 
subsidies can be the difference between eating and starving. 

Given this reality, the anger of African leaders is perfectly understandable. 
Referring to U.S. and European subsidies, Mali's finance minister told the BBC: "The 
money that those countries put into agricultural subsidies is five times what they 
give as development assistance. And we've always said to those rich countries, 'You're 
hypocrites.' You tell us to play (by) the rules of the open market at the same time as 
you subsidize your farmers." 

The U.S. refusal to reconsider its cotton subsidies was one of the main reasons for 
the collapse of the World Trade Organization talks in Cancun. Brazil, joined by 
several other countries, has filed a WTO complaint challenging both the direct farm 
subsidies and the Step 2 payments to cotton buyers as unfair trading practices.

The National Cotton Council, which says the Step 2 program is "vital to U.S. cotton's 
competitiveness," complains "there is nothing new" in the Environmental Working 
Group's report on the program. The same could be said for the pathetic excuses offered 
by those who profit at the expense of others instead of making an honest living.


http://www.townhall.com/columnists/jacobsullum/js20031108.shtml 




-- 
Peter R. Ellis

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