What is Export Dumping?

Every day the world’s wealthy countries provide nearly $1 billion in support to agriculture. In the United States, the largest farms grow far more of certain crops than the U.S. needs domestically and therefore, depend on exports to market the remainder. Depending on the crop and the yield in a certain year, the excess product can equal 20% to 40% or more. The excess is “dumped” in international markets, where it is sold for less than it costs to grow.

With the crop subsidies, the U.S. pays the farmers for their crops, which allows the them to export that crop to a third world country where it is sold at the lowest price. This dumping drives down prices and destroys the livelihood of farmers in countries that do not subsidize growers and are forced to open their markets to foreign commodities. These local farmers are making a subsistence living at best. The American farmer is, in effect, paid twice for the same crop.

According to Oxfam America: “Since many poor communities rely on agriculture, unfair trade and farm policies that allow dumping are a major cause of poverty. If farmers can’t sell their crops for a fair price, they must leave their lands, their families, and migrate in search of jobs.”