Agricultural Industry support and structural adjustment

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Farmers in highly protected industries have a demonstrated capacity to adjust to phased reductions in taxpayer support, according to a new report released today by the Rural Industries Research and Development Corporation (RIRDC).

Agricultural Industry Support and Structural Adjustment, written by David Harris, finds that the number of small farms in supported countries has diminished greatly and taxpayer subsidies are increasingly going to large, high-income farms.

The report provides case studies of the dairy industries in the US, Canada and Japan and the US sugar industry and shows that structural adjustment has occurred in these industries, irrespective of government support policies.

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