Canada has reduced financial support to farmers since 1980s

The Organization for Economic Co-operation and Development (OECD) released its annual Agriculture Policy Monitoring and Evaluation report this week.

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The Organization for Economic Co-operation and Development (OECD) released its annual Agriculture Policy Monitoring and Evaluation report this week.

It notes Canada has reduced financial support to farmers since the 1980s. Support to producers accounted for less than 1 per cent of gross farm receipts in the period 2016-18, which is half the OECD average.

According to the report, the largest share of producer support is due to market price support (MPS) to the dairy, poultry and egg sectors and this hardly changed between 2017 and 2018.

The report said domestic prices remained stable while world prices increased.

Prices received by farmers, on average, were about 6 per cent higher than world prices, but large differences between commodities persist.

The expenditures for general services (GSSE) measured relative to agriculture value added were above the OECD average.

Total support to agriculture as a share of gross domestic product (GDP) has declined significantly over time and is lower than the OECD average.

More than 7 per cent of the total support is provided to individual farmers.

The report examines 36 OECD countries, as well as 12 emerging nations including Brazil, the Russian Federation, China and South Africa.

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