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The Grain Sector of the European Community: Policy Formation, Price Determination, and Implications for Trade

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  • Paul Gallagher

Abstract

A coresponsibility levy was added to high domestic prices and export subsidies in the EC. Levels for policy instruments could result from negotiations which favor producers but are acceptable to the public. Higher domestic prices and levies but lower export subsidies would occur if levy exemptions cover domestic marketings. If exemptions are excluded, low domestic prices, producer subsidies, and export taxes would occur. With exemptions, improved farm income and treasury surpluses would be achieved without injury to the public. Exemptions might be excluded because producers are better off and public cost is about the same with either program but producer subsidies require expanded public financing. Export reductions would occur under either program, given prevailing market conditions.

Suggested Citation

  • Paul Gallagher, 1988. "The Grain Sector of the European Community: Policy Formation, Price Determination, and Implications for Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 767-778.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:4:p:767-778.
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    References listed on IDEAS

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    1. Marsh, John S, 1984. "The Reform of the CAP: National Interests and Financial Implications," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(2), pages 141-150.
    2. Mahama, Ramatu, 1985. "A stochastic simulation of the impact of price insulation policies on world wheat market stability," ISU General Staff Papers 198501010800008868, Iowa State University, Department of Economics.
    3. Case, J, 1974. "On the Form of Market Demand Functions," Econometrica, Econometric Society, vol. 42(1), pages 207-210, January.
    4. Paarlberg, Philip L., 1984. "When Are Export Subsidies Rational?," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 36(1), pages 1-7, January.
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    Cited by:

    1. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    2. Alessandro Olper & Daniele Valenti & Valentina Raimondi & Daniele Curzi, 2023. "The EU enlargements treatment effect on agricultural policy," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1134-1153, June.
    3. Giardini, Giovanni, 1992. "The reform of the agricultural policy in the European Economic Community: an Italian farm simulation study," ISU General Staff Papers 1992010108000017587, Iowa State University, Department of Economics.
    4. Gallagher, Paul W., 2012. "Trade Policy Options for a Food-Security Commodity in Southern Africa: A Case Study of Maize in Zambia," Staff General Research Papers Archive 34830, Iowa State University, Department of Economics.
    5. Bullock, David, 1991. "Pareto Optimal Welfare Redistribution and the European Community's Common Agricultural Policy," WAEA/ WFEA Conference Archive (1929-1995) 321445, Western Agricultural Economics Association.
    6. Bullock, David S., 1991. "Are Government Transfers Efficient? Problems In Testing The Efficient Redistribution Hypothesis," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271368, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
    8. Martin, Lizbeth & Paarlberg, Philip L. & Lee, John G., 1999. "Bargaining For European Union Farm Policy Reform Through U.S. Pesticide Restrictions," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), pages 1-10, October.

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