World Perspectives

Farm Subsidies on the March

Subsidies can increase output and there are many ways to subsidize an industry, but that doesn’t mean that countries should do it.   Cost of Production: The EU badly wants to become self-sufficient in plant protein. More than four decades ago Europe lost a dispute settlement case due to the subsidies it provided to oilseed producers so it has to approach the goal with caution. A recent analysis suggested Europeans reduce their consumption of meat as an approach toward limiting soybean imports. Now some farm organizations are demanding that farmers be paid no less than the cost of production (COP) as part of the Unfair Trade Practices directive. The cost of production varies greatly among producers. Paying every farmer based...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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