Are dairy farmers subsidized?
No. 100% of producers’ milk revenues come from the marketplace. The Canadian dairy industry has made significant productivity gains without the help of expensive government programs. The United States and the European Union on the other hand, continue to dole out billions of dollars to their farmers. A recent study published by Grey, Clark and Shih, international trade practitioners, reveals that US dairy farmers can get up to 1/3 of their income from direct government payments. Dairy farmers have dealt with the impact of BSE for more than 18 months above facing increasing costs for items like energy and insurance. Under similar conditions, other businesses would have already increased prices.
