Proposed changes in the European Union's agricultural policies would mean more competition in export markets for U.S. farmers, causing net farm income to decline by $1.4 billion per year, according to U.S. experts.
The Food and Agricultural Policy Research Institute (FAPRI) says that according to a preliminary report on the European Union's proposed "Agenda 2000," the reforms would likely result in an increase in European exports of wheat and other agricultural products.
"More competition from Europe would challenge the U.S. position in world markets and could affect U.S.-EU trade relations," said Darnell Smith, an Iowa State University researcher and managing director of FAPRI.
FAPRI, a joint institution of ISU and the University of Missouri, analyzes major agricultural issues for Congress and other decision- makers around the world. The FAPRI report indicates that U.S. wheat exports and wheat prices could each be reduced by about 6 percent if the proposed reforms are fully implemented. U.S. corn and soybean prices could fall by 1 to 2 percent, and livestock prices by less than 1 percent.
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