World Prices for Agricultural Products: Real or Fictitious?
Two lines of argument are used to support protection of agriculture in a specific country or region. One is that the farmers of the country or region have some particular disadvantage, such as small farms, poor land or bad weather, that increases their costs compared with those who farm under more satisfactory conditions. A second argument is that the world market prices for farm products are significantly distorted and fail to reflect real cost conditions due to the use of export subsidies, production subsidies and import restrictions.1 Thus the argument can be made that no single country or region can afford to open its market to imports or it will be deluged with products that are priced unfairly and unreasonably low.
KeywordsFree Trade Wheat Production World Market Price Export Subsidy World Price
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Notes and References
- 23.Donald W. Regier and O. Halbert Goolsby, Growth in World Demand for Feed Grains, 1980 (Washington: USDA, 1970), p. 87.Google Scholar