WEDNESDAY 2nd - is this the coreect spot?
Farm Support systems
Farm support can include things like – subsidies, quota, set-a-side policies,
legislation for marketing, tariffs, import control (not always as efficient as
they want to be and some times they are not efficient at all)
Subsidies can be expensive to governments so generally are avoided, while
quota costs the Canadian government next to nothing to keep this system in
Set-a-side: set a side part of the land to keep out of production, cutting
supply and increasing prices. Government will pay the farmer X
dollars/hectare to not produce product.
All of these support systems depend on different circumstances:
- Like whether the country is an importer or exporter. Can a country provide
a product cheaper to another country then that country is able to produce
itself? Will it ban all imports?
- Political pressure
- lobby groups
- Used mostly to keep food prices relatively low to feed urban population
- In developing world this can be reversed and helps farmers get