February 24, 2003

National Farmers Union President Dave Frederickson says the United States must address the increased consolidation and globalization of agricultural markets if it is to compete in the 21st century. During a farm-group roundtable discussion entitled, "Competing in the 21st Century" at USDA's Outlook Forum, Frederickson outlined what he saw as the challenges brought about by growing market concentration and unfair trade policies.

On the topic of consolidation in the agriculture sectors, Frederickson said, "The dramatic increase in mergers, acquisitions and strategic alliances has a substantial impact on market competition for both producers and consumers. I believe we must address this issue both domestically and internationally if U.S. producers are to compete in the 21st century."

The Farmers Union leader also said of international trade, "I fully appreciate the importance of international trade to U.S. farmers and ranchers. Yet, the claims of free trade proponents in supporting our trade agenda not only are wrong, but the excessive claims about the benefits of trade lead to a level of expectation that is unlikely to ever be fulfilled."

Proof of this, he said, is shown over the last three decades as the aggregate farm gate export value for U.S. agricultural products has remained flat while domestic demand has continued to increase.

"If U.S. producers are to be competitive in the 21st century, trade negotiations and agreements must first be viewed as a means and not the end as many seem to currently believe," he said. "Attention must be given to not only the traditional trade issues of market access, export subsidies, domestic policy and special and differential treatment but also to issues such as labor and environmental standards and exchange rate fluctuations."

He added, "Unless we find new ways to address these issues, U.S. production agriculture's ability to engage in economic rivalry without the presence of monopoly or collusion will be relegated to the same mythical status as free trade."