Ontario Agriculture

The network for agriculture in Ontario, Canada

Tough Times for Farm Policy Designers.

When I graduated from university with a degree in agricultural economics, I was ready to take on the farm policy world. As a farm kid, I surmised that the government policy wonks at the top just needed a taste of my grassroots perspective and did I mention that I had a freshly printed degree in agricultural economics?

Yes, I was naïve, but I was also willing to pay my dues so I took a job as a policy researcher with a general farm lobby organization. It took two years, but it began to dawn on me that the life of a farm policy designer was not as glamorous as I originally thought. In fact, taking a farm policy gig means accepting the fact that you will please precisely no one. Regardless of how brilliantly you craft a new support program, your boss, the government, will say the program:

• gives too much money to farmers
• is not targeted properly
• has too many loopholes
• has high administration costs
• is not trade neutral
• is outdated even as it is released

On the other hand, farmers and their representative organizations will not be shy in letting you know that the program:

• does not provide enough money for farmers
• is not targeted properly
• is too inflexible
• requires too much paperwork
• is outdated even as it is released

The job is only getting tougher, because traditionally, farm support programs have dealt with commodity price dips and revenue erosion. We currently have volatile swings on the revenue side, but also crazy and fluctuating numbers on the expense side, whether it be feed, fertilizer, fuel, or other.

Twenty years after leaving university, I now know that farm policy design is not for the faint of heart, especially in the current environment. I’m happy to leave the job to others. The reality is, though, that traditional price or revenue support models are not going to be effective if the current environment persists. If you were given the task of designing farm support programs for tomorrow, where would you start? How would your program differ from what we see today?

Click here to join the discussion.

Peter Gredig
Farms.com


This commentary is for informational purposes only. The opinions and comments expressed herein represent the opinions of the author--they do not necessarily reflect the opinion of Farms.com. This commentary is not intended to provide individual advice to anyone. Farms.com will not be liable for any errors or omissions in the information, or for any damages or losses in any way related to this commentary.

Views: 45

Reply to This

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Export Gains Support Grains as Crypto Markets Retreat

The week of November 17 to 21 brought mixed commodity trends, changing export demand, and cautious investor behavior as markets prepared for month-end adjustments.

Stats Canada releases updated 2024 farm income data

Realized net farm income fell 26 per cent in 2024

USDA's November Crop Report was neutral to bearish vs expectations for corn

The 2025 U.S. corn crop remained historically very large with key revisions pointing to slightly lower production

Technology transforms traditional family farming

Farms today are rooted in tradition, with many working hard to keep generational operations alive. But technology has become essential to soil, seed and watering processes. Farmers are balancing two eras—remembering the iron and instinct of the past while embracing how technology is reshaping successful farming. Soda Springs farmer Dan Lakey describes his experience as two different farming careers. Growing up on the Lakey Farm in the 1980s and 1990s, he spent countless hours during his teenage years pulling a cultivator behind a 300-horsepower tractor. “I didn’t enjoy it much because all I knew was the hard work,” he said. After college and time in the corporate world, Lakey returned to the family farm and found how drastically equipment and the industry had changed. Larger planters and 600-horsepower tractors have revolutionized productivity and efficiency. What once took a full crew a week now takes two people a single day. GPS-guided tractors and combines with auto-steer capa

Deere forecasts little relief for U.S. farmers

Deere & Co., the world's largest farm-equipment manufacturer, sees another difficult year ahead for the U.S. farm economy. Why it matters: America's farmers have been in a two-year slump, squeezed by rising costs, falling crop prices, tariffs and a global trade war. Zoom in: Deere on Wednesday provided its first forecast for 2026, saying it expects its business selling to large-scale farms in the U.S. and Canada to fall 15% to 20%. Row-crop farmers — like those growing corn, soybeans, and wheat — continue to face headwinds, pressuring their short-term liquidity and causing them to continue to rely on older, used equipment, the company told investors. Deere is continuing to keep production tight for large equipment in response to low demand, noting that its inventory of big tractors ended the fiscal year at the lowest unit level in over 17 years. Zoom out: "Our organization is used to managing cyclicality. But this year, we faced an additional headwind of heightened uncertainty in a

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service