John Kinsman: Nation's food system nearly brokeThe government's response to plummeting commodity prices and tightening credit markets leads to the basic question: Who will produce our food? This is a worldwide crisis. U.S. policy and the demand for deregulation at all levels -- from food production to financial markets -- contribute greatly to the global collapse. The solution must be grounded in food sovereignty so that all farmers and their communities can regain control over their food supply. This response makes sense here in Wisconsin and was the global message from the 500+ farmer leaders at the Via Campesina conference in Mozambique in October.
Many U.S. farmers are going out of business because they receive prices equal to about one half their cost to produce our food. How long could any enterprise receiving half the amount of its input costs stay in business? As an example, dairy farmers in the Northeast and Midwest must be paid between 30 and 35 cents per pound for their milk to pay production costs and provide basic living expenses. Until 1980, farmers received a price equal to 80 percent of parity, meaning that farmers' purchasing power kept up with the rest of the economy. Unfortunately, a 1981 political decision discontinued parity, and today the dairy farmers' share is below 40 percent.
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As more farmers face bankruptcy, we all face a food emergency. European farmers speak from thousands of years of experience on the importance of family farms when they warn us, "Any time a country neglects its family farm base and allows it to become financially bankrupt, the entire economy of that country will soon collapse. It may take generations to rebuild the farm economy and that of the country."
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Bailing out the financial giants will not solve the financial crisis in the country, but the right policies and stimulus dollars could prevent a severe food crisis by saving farmers and workers. Furthermore, farm income dollars remain in and multiply at least two to four times in the local economy.
Family farmers have proposed fair food and farm policies that can be implemented at a fraction of the present multibillion-dollar policies destroying us. As the Treasury Department develops plans to distribute the bailout funds, the National Family Farm Coalition and others urge it to require banks receiving funds to treat their borrowers fairly by providing debt restructuring as an alternate to home or farm foreclosure or bankruptcy.