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Agricultural Policy: High Commodity and Input Prices

Published online by Cambridge University Press:  15 September 2016

Andrew Schmitz ,
Hartley Furtan  and
Troy G. Schmitz
Andrew Schmitz
Affiliation:
Department of Food and Resource Economics at the University of Florida in Gainesville, Florida
Hartley Furtan
Affiliation:
Department of Agricultural Economics at the University of Saskatchewan in Saskatoon, Saskatchewan
Troy G. Schmitz
Affiliation:
Department of Management and Agribusiness at Arizona State University in Mesa, Arizona
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Abstract

Because of high commodity prices, beginning in 2006, subsidies to farmers in the United States, the European Union, and Canada have been reduced significantly. However, significant losses have been experienced by the red meat sector, along with escalating food prices. Because of rising input costs, the “farm boom” may not be as great as first thought. Ethanol made from corn and country-of-origin labeling cloud the U.S. policy scene. Higher commodity prices have caused some countries to lower tariff and non-tariff barriers, resulting in freer commodity trade worldwide. Policymakers should attempt to make these trade-barrier cuts permanent and should rethink current policy legislation to deal with the possibility of a collapse of world commodity markets. Agricultural commodity prices have dropped significantly since early 2008.

Keywords

agricultural policyhigh commodity pricesinput prices
Type
Invited Papers
Information
Agricultural and Resource Economics Review , Volume 38 , Issue 1 , April 2009 , pp. 18 - 35
Copyright
Copyright © 2009 Northeastern Agricultural and Resource Economics Association 

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