Recent Agricultural Policy Reforms in North America

The United States, Mexico, and Canada have each made significant changes to their agricultural policies over the past several years. In the area of income supports, each country has instituted a countercyclical program that provides additional assistance to producers during downturns in commodity prices, and each continues to decouple key support programs from production decisions. In other areas, the reforms of the three countries have different points of emphasis. The United States has expanded spending on conservation activities, especially on lands in production; it has made important changes to peanut and tobacco programs; and it has implemented a new program that assists producers who are adversely affected by competition with imports. Mexico’s new efforts to strengthen the competitiveness of its agricultural sector include energy discounts for producers, and a revamped approach to agricultural finance. And Canada’s comprehensive evaluation of its farm programs is leading to new efforts concerning the environment, food safety and food quality, science, and the renewal of the agricultural sector.