U.S. Subsidizes Companies to Buy Subsidized Cotton

[Khephra]

Hidden in plain sight, a federal farm subsidy program is paying nearly $1.7 billion to American agribusiness and manufacturers to buy American cotton that is already one of the most highly subsidized crops in the world, according to figures compiled by the program's critics.

The plan, which is the equivalent of paying Kellogg's to buy American corn, is known as the upland cotton marketing certificate program, and was started in 1990 when American cotton was selling at a much higher price than foreign cotton. Under it, American cotton is, in essence, subsidized twice, with payments going to companies that buy the cotton from farmers. The farmers themselves also receive subsidies for growing the cotton. The program is drawing increased criticism from foreign cotton producers.

more.................

http://www.nytimes.com/2003/11/04/business/04cotton.html

[hang a left]

1. Where is cotton grown? In the South? Where is whistle*s base?

[Maple]

2. That's why hemp is banned

as well.

[grytpype]

3. Oh, for fuck's sake.

I wish somebody could do something about this kind of rank corruption.

[teryang]

4. This is the so called "laissez faire" economics

...of the conservatives. Subsidize american landowners producing a product whose prices are extremely depressed on the world market. Then pay Asian workers 18 cents a day, or better yet use prison slaves to make it into clothing and then sell it here in the land of the free for ridiculous profits.

[minto grubb]

5. Another example of Free Trade...

That shold be replaced by Fair Trade.
In the UK, there is a company that buys direct from suppliers in the 3rd world. These are often individuals and village cooperatives.
Buying traidcraft is one way we can help, but there also has to be a massive call for a change in the way the rules of international trade are structured. Right now, the west benifits immensely, and the rules are rigged to keep the poorer nations poor.
Fair Trade, not Free Trade.
I am not a computer whizz, but you can google 'Traidcraft' for more info.

[The Backlash Cometh]

6. Corporate Welfare.

White, greedy white men are Welfare Kings.

[TreasonousBastard]

7. There's another interesting angle to this.

I heard this from a South American correspondant to one of the lists I'm on.

Imported cotton clothes are subject to a 30% duty if they are not made with US cotton.

So, subsidized US cotton, which is still the most expensive in the world, is sent to Bolivia where it is made into clothes and sent back here. Exactly where the cloth is woven is up in the air, but often not here.

Meanwhile, Bolivian farmers who would rather grow cotton than coca plants see no point to it. And Bolivian garment factories are encouraged to keep wages even lower to cover the cost of the cloth.

Oh, after this, we can talk about Florida sugar growers, who for years have kept the US price of sugar twice the world price. This goes back long before Jeb, so you can't blame it on him.