A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

2015, a challenging year for American agriculture

April 6, 2015

Confronted to rising financial and geopolitical risks––the Russian embargo, the competitiveness/price burden, lower oil prices and the economic vulnerability of trade partners––to climate hazards––drought and flooding––as well as to permanent market threats, the year 2015 might not be especially promising for American agriculture. For example:
    - American farming incomes are expected to fall to $73.6 billion in 2015,a 32 percent declinefrom $108 billion in 2014, thus reaching their lowest level in six years, as revealed in the USDA latest forecast. In addition, an eventual increase in interest rates could jeopardize farmers’ ability to get loans.

    - According to the same source, the agro-food trade surplus is likely to decline sharply to around $27 billion––the lowest level since 2009––with an estimated $1 billion contraction in agricultural and food exports to China. Consequently, the amount of agro-food exports would fall to $143.5 billion from $152.5 billion between 2014 and 2015.

    - The prices of some agricultural commodities are expected to continue to decline, especially milk prices, partly due to the American market overabundance––China’s decision to stock milk powder and the impact of the Russian embargo––as well as corn prices shifting to $4/bushel in 2015 from $8/bushel in 2012, and soybean prices at $9.80/bushel today against $14.40/bushel.

    - Lastly, the agricultural population will continue to age, at a time when the average age of farmers is 58. The number of farmers between the ages of 35 and 44 has shrunk by 24 percent between 2007 and 2012.
Europe is confronted to the same challenges, but is it fighting on equal terms for the survival of its agricultural activities? While it is not a question of paying tribute to the US agricultural policy––US agriculture is far from being free from structural imbalances––one must recognize the disparity of treatments of agriculture on both sides of the Atlantic.

In fact, while the outlook for 2015 can seem a source of anxiety for America farmers, we are talking about short-term forecasts that should in no way erode their trust in the US farming ability to excel and adjust. The support system included in the Farm Bill––crop/sales insurance programs to prevent market instability and climate hazards––and the $956 billion budget earmarked for the next ten years are safeguarding farmers’ incomes for the forthcoming decade.

Can our common agricultural policy make the same claim? Going against the flow of the major current agricultural policies, it no longer reflects the agronomic, societal, economic and cultural specificities of European agriculture. Consequently, momagri is proposing to give a new strategic course to the CAP by taking advantage of the coming period to the review of the European multiannual financial framework in 2017.

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Paris, 24 June 2019