ACADEMY ASSOCIATION OF ECONOMICS CERTIFIED CHARTERED ECONOMISTS CHE CEPA

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Farm Policies and World Trade The growing interdependence of world markets prompted world leaders to attempt a more systematic approach to regulating agricultural trade among nations in the 1980s and 1990s. Almost every agriculture-producing country provides some form of government support for farmers. In the late 1970s and early 1980s, as world agricultural market conditions became increasingly variable, most nations with sizable farm sectors instituted programs or strengthened existing ones to shield their own farmers from what was often regarded as foreign disruption. These policies helped shrink international markets for agricultural commodities, reduce international commodity prices, and increase surpluses of agricultural 106

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Friedrich August von Hayek, 1974 Nobel Prize Winner

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