Decoupling Farm Payments: Experience in the U.S., Canada, and Europe

Clayton Ogg and Gerrit Cornelis van Kooten

No 2004-13, Working Papers from University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group

Abstract: Commodity payments in Europe and North America are production based, encouraging greater chemical use and cropping area. Thus, each region undermines the other’s price supports at the expense of the environment. Countries can, however, sever the link between yield levels and payments. Allowing farmers to exit agriculture poses challenges for the US, but perhaps not for Canada and the EU.

Keywords: decoupling; liberalizing trade; environment; flexibility (search for similar items in EconPapers)
JEL-codes: Q15 Q17 (search for similar items in EconPapers)
Date: 2004
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