Environmental And Farm Commodity Policy Linkages In The Us And Ec

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Abstract
This paper analyzes restrictions on agricultural chemicals in the US and EC under various farm commodity policy scenarios using a partial equilibrium simulation model. The model has three regions (US, EC, rest of the world) and four commodities (wheat, corn, coarse grain, soybeans). Medium- and long-run impacts are derived. Given existing farm programs, US landowners gain from chemical restrictions while EC ·1andowners generally lose. Given bilateral elimination of farm programs, both US and EC landowners gain from chemical restrictions. Bilateral farm program elimination without chemical restrictions induces a shift in chemical usage from the EC to the US.
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