US apple growers fight for slice of own market

"China is such a huge country that when industries go into markets in such a massive way, they swamp other producers and cause commodity prices to collapse," says Jim Cranney, vice president of the United States Apple Association.

China is currently developing similar levels of production of garlic, potatoes, walnuts, and several fruits and vegetables. But China is not US farmers' only competitor.

A boom in grape, pear, and raspberry imports from Chile, as well as orange juice concentrate from Brazil, has recast the pricing structure of American produce.

When it comes to agricultural trade, less-developed countries have this advantage: They can produce their product at much lower costs.

China spends 70 percent less than American farmers to produce walnuts that are virtually identical, according to Mr. Blank, primarily because of low labor and land costs. Able to enter markets at such low prices, they find America's open-door approach to trade difficult to pass up.

Foreign nations levy an average tariff of 62 percent on US exports; agricultural imports into the US face an average tariff of only 12 percent, according to the Agriculture Department.

"What we have in the US is not a lot higher than some state sales taxes," says John Skorberg, senior economist with the American Farm Bureau.

By cutting its own tariffs, the US hopes to jumpstart freer trade across the globe and open foreign markets for its products. Trade officials are negotiating to lower average global tariffs to 15 percent by 2006. But many farmers wonder if that is soon enough for their family businesses to remain solvent.

So far, US consumers have shown little sensitivity toward supporting American farmers. "When we do surveys of customers, where the product comes from usually ranks seventh or eighth in importance to them,"says John Motley, vice president of government relations for the Food Marketing Institute.

Farmers hope a new federal law that calls for grocers to voluntarily label the country of origin of all fruits and vegetables, among other products, will encourage consumers to buy American.

In response to predictions of the demise of American farming, many experts point to US dominance of vital grain industries like corn, soybeans, and wheat, products which nations like China import largely from the US. Others emphasize the fact that the nation has subsidized industries some see as vital to the national character, like dairy farming, and will continue to do so.

Apple farmers are currently debating whether they want to start accepting government subsidies, which corn and wheat farmers have relied on for decades. Many are loath to do so. Jeff Crist believes the debate would be unnecessary on a level playing field.

"Do we have free trade or don't we? The answer to that question in my mind is, no we don't."

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