The agricultural sector in Canada is relatively large, compared to those in most other G7 countries. In
recent years, the federal and provincial governments have undertaken a number of sectoral reforms to meet
the competitiveness and environmental challenges that it faces. The federal government has tried to end a
marketing monopoly in the barley market and may do so for wheat as well. The next generation of
agriculture and agri-food policy is being finalised, and implementation of the first part of a new
framework, Growing Forward, has begun. But a steady stream of ad hoc programmes in recent years has
had significant budgetary costs and no doubt created moral hazard among farmers. There is scope for
further liberalisation in supply-managed sectors, which are heavily protected and subsidised by consumers.
Moreover, Canada’s bio-energy production, in particular the production of second-generation bio-ethanol
(from cellulose), is under pressure in light of less costly bio-energy production overseas. Against this
background, governments are striving to ensure the long-term viability of the sector. This Working Paper
relates to the 2008 OECD Economic Survey of Canada (www.oecd.org/eco/surveys/canada).
Modernising Canada's Agricultural Policies
Working paper
OECD Economics Department Working Papers
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