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pennings policy


his last week, we were contacted by a Euro- pean colleague who


wanted to talk about agri- cultural policy and the need for reserve stocks that would protect the world’s most vulnerable populations against crop failures and extremely high prices. The issue of reserve


stocks is right down our alley because they are an essential element of supply management programs designed to protect con- sumers during periods of time when farmers in one or more areas experience


∆ Contact Dr. Harwood D. Schaffer or Dr. Daryll E. Ray at the UTʼs Agricultural Policy Analysis Center by calling (865) 974-7407,faxing (865) 974-7298, or emailing hdschaffer@utk.edu or dray@utk.edu. For more info, visit: www.agpolicy.org


Coordination Of Agricultural Policy T


production shortfalls that result in extremely high prices and a significant in- crease in malnutrition and death. During the call we dis-


cussed the Agricultural Policy


Analysis


Center/Texas Farmers Union proposal that APAC and the TFU developed ahead of the adoption of the 2018 Farm Bill. We discussed how the policy would build government- held reserve stocks during times of marginally sur- plus production and low prices and release them into the commercial mar- ket when crop production


is below demand and prices have increased to or above a specified release price. Details of this policy pro-


posal are available at http://www.agpolicy.org/ articles17.htm (columns 890-897), so rather than review that information here we want to examine some other ideas that came up in that conversa- tion. The challenges EU farm-


ers live with are little dif- ferent from the problems facing US and Canadian farmers. All three nations (for this issue the EU func- tions as a nation-like en-


tity) have mature agricul- tural economies where most of the tillable land is already in production, bar- ring the potential impact of climate change. Any in- creases in production in these three countries are going to come from in- creased knowledge of seed and soil science. By way of contrast, in


most other nations – espe- cially developing countries – increased production can come from bringing addi- tional land into crop pro- duction and/or bringing local yields up to the levels achieved by farmers in places like the US, the EU,


and


DR. DARYLL E. RAY


Emeritus Professor, Institute of Agriculture, University


of Tennessee and Retired


Director, Agricultural Policy Analysis Center


Canada. To expect these other countries to imple- ment policies that limit production is likely an ex- ercise in folly. Only when they have developed a ma- ture agricultural economy will they be willing to im- plement production man- aging policies. To us and our EU col-


league, it would make sense for the three coun-


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2• MidAmerica Farmer Grower www.mafg.net / October 16, 2020


DR. DARYLL E. RAY


Emeritus Professor, Institute of Agriculture, University


of Tennessee and Retired


Director, Agricultural Policy Analysis Center


tries to implement com- patible supply manage- ment policies, including the holding of reserve stocks that could be used in emergencies. The development of com-


patible supply manage- ment policies that avoid “beggar thy neighbor” ex- port policies will face chal- lenges. Among


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SprayCoupe220 . . . . . . . . . $5,000 TRACTORS


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the


challenges are differences CONTINUED ON PAGE 11


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