The governments of most developed, and many developing, countries impose border measures - tariffs, tariff rate quotas and export subsidies - to boost the domestic market prices of agricultural commodities. In some OECD countries, governments also provide financial support to their agricultural sector through other means, as well. These interventions typically distort the allocation of resources, leading to sub-optimal production and consumption decisions. Using a partial-equilibrium agricultural commodity model with rich policy detail, this study examines the market impacts of agricultural policy reform annually over a 10-year horizon. The study finds that the biggest impacts of agricultural policy reform would be on world dairy markets.
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