United States

In 1996, the United States to implement the new farm bill to replace the system of agricultural subsidies of grain reserves. The Government will no longer throw up food reserves to correct distortions in the grain market, but simply pay the purchase price of food processors and farmers to maintain sustainable farms, the price difference.

1995 to 2002, the United States provided 114 billion U.S. dollars of agricultural subsidies, an average 14.25 billion U.S. dollars. Subsidies, 80% more flow to farmers and agricultural companies, 12.5% is “Soil and Water Conservation Project”, another 7% for natural disaster relief areas.

Applicable provisions of agricultural subsidies in the United States include: corn, sorghum, barley, oats, rice, soybeans, oilseeds, cotton, milk, peanuts, sugar, wool and mohair, honey, apples, dried beans and other crops about 20 species; focus on targeting subsidies to grain, cotton, oilseeds and dairy production.

European Union

Interference in the procurement. Means that when the market price falls below the minimum support price, the government procurement specific surplus agricultural products, and its for temporary storage or export. In most market conditions, interfere with the market price of playing the role of bottom-line prices. Government intervention in procurement of agricultural products must meet minimum quality requirements.

Production and sales quotas. Mainly used in sugar and milk, the purpose is to limit the over-production, and support the production costs. Quota is by reducing the internal supply to help support prices.

Import protection. Priority objective is to maintain the basic principles of EU products, and to prevent cheap imports damaging the EU’s internal price support system. In order to ensure that imported products are not lower than the prices of agricultural products within the European Union have the vast majority of imports of agricultural products with tariffs. EU import tariffs on agricultural products average 30% import tariff rate of more than 100% up to 141 kinds of agricultural products.

Export subsidies. Most have price supports for agricultural products can enjoy export subsidies, for the transfer of surplus agricultural products from the internal market to provide funds to support the internal price. Currently, the EU export subsidies amount of the members of the World Trade Organization is the largest.

Japan

Specific agricultural income stabilization program. If the market price is lower than the “standard price” (the first 3-year average of market price), farmers will be subsidized. Subsidies targeted mainly planted arable crops, oilseeds, fruits and vegetables, and farmers engaged in animal husbandry.

Post subsidy scheme. If the current market price of certain agricultural products lower than the fixed reference price, producers can enjoy the difference between the subsidy. Subsidies for the insurance of crops and livestock. Government for these insurance plans provide 40% to 55% of the premium, farmers will pay the remaining part of the premium. When the crop or livestock losses due to natural factors, when the accident occurred, farmers can receive under the terms of the insured 20% to 80% of the damages.

Japan’s average agricultural import tariff rate was 58% import tariff rate of more than 100% up to 142 species of agricultural products. The Government also controls the volume and price of food imports. For example, in accordance with the international prices of imports of wheat, and then 2 times the price sold to domestic flour mills; the same time, buying domestic wheat, and then to less than the price of imported wheat sold to domestic flour mills, in order to encourage They accept domestic wheat.

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