That's the warning issued by the Ontario Corn Producers' Association (OCPA), which has joined calls for compensation for its members.

Washington's new Farm Security and Rural Investment Act, just passed by Congress, allows 95 per cent of direct payments to be made to grain and oilseed farmers.

And this, agricultural spokesmen believe, could trigger an overall decline in market prices and force Canadian farmers to drop theirs to compete with their U.S. counterparts.

"The impact of the new U.S. ag policy will be felt directly on Ontario farms and throughout the rural economy," said OCPA president Dennis Jack. "Income levels on grain and oilseed farms have been in constant decline for the last five years. The sector simply cannot absorb the impact of six more years of injury resulting from the subsidization of our direct competitors."

To meet the U.S. challenge, the OCPA is calling for establishment of a trade injury compension program similar to that demanded for the prairie provinces by the Grain Growers of Canada.

"It is only a matter of months before the effects of this bill are felt within Ontario's rural economy," said OCPA vice president Mat Menic. "Governments need to take action now if the viability -- even the survival -- of our farm sector is to be assured."

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