The Divergence in Canada-U.S. Grain and Oilseed Policies |
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| Authors: | Andrew Schmitz Richard Gray |
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| Institution: | Eminent scholar, Ben Hill Griffin, Jr., Endowed Chair in the Food and Resource Economics Department, University of Florida, P.O. Box 110240, Gainesville, Florida 32611-0240 ().;Professor and Head, Department of Agricultural Economics, University of Saskatchewan, Saskatoon, Saskatchewan. |
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| Abstract: | This paper discusses U.S. and Canadian farm programs for grains and oilseeds. In spite of the passage of the U.S. FAIR Act in 1996, where subsidies were to be greatly reduced, subsidies reached an all-time high of over $20 billion in 2000. In Canada, just the opposite occurred, as support for the grains and oilseeds sector has dropped sharply since the mid-1990s. In addition to differences in support levels, the farm prog rams are very different. NISA and AIDA are prominent in the landscape in Canada, while under FAIR, loan deficiency payments are a key ingredient. We provide some explanations for the divergence in farm programs between the two countries, including a discussion of rent seeking and public choice. |
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