Madam Speaker, the U.S. is in the process of writing a new farm bill to guide its agricultural policy for the seven year period to the year 2002. Although this bill is later than normal, a compromise version of the U.S. Senate and House of Representatives bill is expected to be agreed upon and forwarded to the U.S. President for signature in the next few weeks.
References by the hon. member to U.S. support prices based on 1949 legislation reflect a possibility that is extremely unlikely to materialize.
Both the U.S. House and Senate bills that were passed in February would enact the freedom to farm concept. This concept would eliminate target prices for major crops as well as deficiency payments, land set aside requirements and planting restrictions previously required for farmers to participate in income support programs. In exchange, a seven year production flexibility contract for eligible crops will provide annual fixed and declining payments to farmers irrespective of the level of world prices or actual production.
Under such legislation, U.S. government involvement in agriculture would decline and U.S. farmers would respond to market forces more than they have in the last 50 years. Moreover, export subsidy provisions would not exceed the U.S. commitment allowable under the World Trade Organization.
We are monitoring developments and will be very vigilant in ensuring that the U.S. lives up to all of its commitments under international agreements, including the aggregate level of support it can provide to its agricultural sector.