Safety Net Programs - Mitigating Trade Injury
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*** Images courtesy of AB Barley Commission and Grain Growers

 

 
 
 
The Grain Growers of Canada has asked the government to adopt, as part of the "risk management pillar" in the APF, a safety net program that will mitigate the negative effects of foreign trade policies and subsidies. This program should be in place until the burden of artificial world prices is eliminated.

Program design would be based on a decoupled, fixed payment derived by a combination of historic yields, prices, and acreage to meet World Trade Organization guidelines for "green", or non-trade distorting programs.

Agriculture and Agri-Food Canada research shows that approximately 25% of the price declines experienced since 1995 are due to US and EU subsidies. This amounts to $1.3 billion every years for wheat, durum, barley, canola, corn, and soybeans.