Obeying the Rules

We've been a member of the World Trade Organization since its founding. For all I know, we were one of the founders. Yet, we're having a hard time obeying the rules of the organization when it comes to farming.

The other day we lost another case when the WTO declared that the subsidies to our cotton farmers violated WTO rules. This decision affects more than agriculture as the aggrieved nation that made the charge - Brazil, in this case - can now apply punitive tariffs to any of our products they wish. This is not a good idea when our economy is becoming more and more dependent on exports.

That our agriculture subsidy system needs revamping is a cause of none other than Dean Kleckner, a former head of the nation's largest agricultural lobbying firm. He feels that the subsidies result in farmers being less sensitive to market matters and more concerned about their subsidy. Again, this is not good for our economy.

Of course, Kleckner is not advocating elimination of subsidies. He wants us to adopt the system used in Europe which is based on production history and acreage rather than ours, which is based on current production and prices. Could it be that he favors this because system because it will likely result in higher subsidies for the farmer as well as agribusiness?

Clearly, we have to do something about our subsidy system. But, whatever we do should not increase the amount of money going out of our pockets.