GOVERNMENT INTERVENTION IN CANADIAN AGRICULTURE

Canadian Government intervention in agriculture is measured for 980/81-85/86 using producer and consumer subsidy equivalents (PSE's and CSE's) PSE's were highest for dairy and sugar. CSE's were most negative for dairy products and poultry. PSE's for western grains and oilseeds were moderate, on average, but had high growth rates. Producer support for corn, soybeans, beef, and pork was low and stable. A weighted average PSE for all commodities during the 6-year period was about 25 percent, meaning government support accounted for about a quarter of the value of agricultural production. For 1986/87, producer support is estimated to have increased most significantly for western grains and oilseeds as the Government has instituted new programs or modified old ones in response to falling world prices