Michigan Farmers Seek Aussie Tips

LANSING - Feb 17/05 - MFB -- A group of Michigan agricultural producers is going Down Under to learn how to stay "on top" in the absence of government-funded direct farm aid.

A 20-member delegation will visit Australia March 2-13 and explore, among other things, how Australian farmers successfully transitioned from depending on government subsidies to profiting in the free market. The Michigan Farm Bureau (MFB), the state's largest general farm organization, is sponsoring the agricultural study tour.

"The timing of this trip couldn't be better," said MFB President Wayne H. Wood. "It comes at a time when the current farm bill is being scrutinized, and policy makers are gearing up for discussions regarding a new farm bill in 2006.

"Michigan agriculture recognizes that U.S. farm programs may someday follow Australia's example of doing away with traditional commodity payments. We need to be prepared should this become a reality, and the first step in our preparation is understanding firsthand the ramifications and opportunities of such reform."

For this very reason, the MFB Board of Directors chose Australia as a destination over an earlier suggestion to study the European Union system.

Like neighboring New Zealand, Australia dramatically reformed its government-subsidized farm program two decades ago. The reforms eliminated direct price supports for the country's agricultural mainstays and forced producers to diversify and produce for the marketplace.

Aussie farmers expanded beyond producing wheat, beef and wool and delved into producing other commodities, such as cotton, wine, seafood, dairy products, rice, fruit, vegetables and oilseeds.

As a nation that exports two-thirds of its agricultural production, the country's universal farm shift is evidenced in its global trade. Wheat, beef and wool exports accounted for 55 percent of Australia's agricultural exports during 1989-1990. By 2000-01, their combined share of exports had fallen to 38 percent. During this same period, exports of other commodities surged from 17 percent to 38 percent.

Just as impressive, from the mid 1990s to 2001-02, the gross value of Australian farm production increased a whopping 46 percent from $27.3 billion to $39.7 billion, while the net value of farm production rose an amazing 150 percent from $4.5 billion to $11.2 billion.

"This is not a sight-seeing vacation. This is a fact-finding mission," said Wood. "We're traveling the globe in search of answers to crucial questions such as how many farms were lost during the phase-out of government supports and how Australian farmers were able to diversify and not only survive but thrive."

A good portion of the tour will also be devoted to examining the intricacies of Australia's animal traceability program, which is world-renowned for its monitoring of livestock and meat products from farm to fork.

"We want to learn what quality assurances Australia has implemented that makes buying Australia-produced meat so appealing to fickle processors, including some U.S. companies," said Wood. "As the United States works to implement a national animal identification system in response to homeland security concerns and disease threats such as bovine spongiform encepalathopy, we'd be remiss if we didn't try to learn from the experiences of others."

Also on the agenda is fostering a better understanding of Aussie trade agreements and the country's national health care system.

Trip participants will spend 10 full days in Australia, traveling along the eastern coast from Brisbane to Canberra, the nation's capital, to learn about the country's dairy, beef, sheep, wheat, sugar cane, apple and grape industries.

The group will make stops at a variety of farm sites ranging from food processors and grain elevators to vineyards and livestock sales yards. Along the way, the delegation will have opportunities to meet with officials from Australia's equivalent of the U.S. Department of Agriculture, as well as university experts and leaders from commodity organizations.

Tour-goers will also have the opportunity to stay with a local farm family overnight in the southeast countryside of Queensland.

"This overnight on-farm stay is a unique opportunity that hasn't lent itself to past agricultural study tours," said tour organizer John Vander Molen, MFB chief operating officer. "Every effort is being made to pair each participant with a local family that produces the same commodities. We suspect this extended stay in an informal yet somewhat familiar setting will engage producers in very informative and candid discussions that can't be captured in conference rooms or traditional tour settings."

Copyright (c) 2005 Michigan Farm Bureau