Home

E-Mail

Back

Prairie Grains is the official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain Growers Association,
South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.

Concerning the U.S.-Canadian agricultural trade imbalance, Glickman said the U.S. government is currently working with the Canadian government to resolve the issue. He said Canadian representatives recently met with USDA officials in Washington, D.C., to work on resolving the export sales reporting system. Glickman is also working to get Canada to increase price transparency in its merchandising system.

On other issues, Glickman said that obtaining approval for a two million metric ton wheat sale to Iran is still being reviewed. "This is being actively considered at the highest levels of government," he said.

Glickman said that he’s not afraid of using the Export Enhancement Program (EEP), but that other countries’ export subsidies aren’t high enough now to justify it. It is preferable to allow EU ag reforms to take place, but if the Europeans or other countries do intensify their export subsidies, he said the USDA will "fight fire with fire."

The Export Enhancement Program is a tool, but he pointed out that it is only 1/20th the scope of the GSM program. Our food aid and GSM credit programs are a clear advantage to the U.S. in global grain markets; Glickman said these programs are "backed by the full power of the U.S. treasury."

Indeed, Glickman announced several weeks after the USW meeting that USDA’s Commodity Credit Corporation (CCC) purchased more than 1 million metric tons of hard red winter wheat valued at approximately $133.5 million. This represents the largest purchase of wheat on a single day by the CCC. The wheat will be donated to countries in need.

However, Glickman acknowledged that while food assistance and GSM programs can be used, they are only "one leg of the stool." He said work on larger problems, such as the lack of a safety net against a fall in commodity prices, needs to be addressed. "We have the freedom to plant, but not the freedom to market due to [the] ’96 farm bill."

Glickman noted that it is difficult to talk about agricultural problems when the rest of the economy is doing well. Natural resource sectors such as oil and gas, agriculture and minerals are the only sectors suffering in the U.S. economy. Glickman urged USW and producers to talk with members of Congress and express specifics to them, as it is Congress which has the power to pass legislation.

USDA Secretary Dan Glickman fields questions after briefing members of U.S. Wheat Associates, at its Spring board meeting in Washington, D.C. To Glickman’s right is USW President Alan Tracy.