The Canadian Farm Products Agencies Act (2012) requires that comparative advantage be used to guide the allocation of new quota under supply management. This requirement, however, has not been met in practice. Agricultural economists have proposed several ways of making this legal requirement...

We examine the effect of farm level cost and scale efficiencies on dairy quota exchanges in Ontario. A constrained profit maximization framework is used to illustrate the role of cost efficiency in quota exchanges (i.e., sales and purchases). Using a multinomial logit model, where net quota...

The initially stated objective of the Canadian dairy supply management–farm revenue risk reduction–has been met well by the program. However, it is less clear whether the program has served all farms equally well. Namely, it is not known how successful the program was in enhancing the...

Following the Uruguay Round of trade negotiations Canada replaced its import quotas on sensitive products with tariff rate quotas. The over-quota tariffs on those products operating under domestic supply management schemes (dairy and poultry products) ranged from a low of 155 percent on turkey...

The system of supply management in the Canadian dairy sector requires that farmers acquire quota to produce milk. In Canada's largest dairy producing province, Quebec, a ceiling on the price of quotas has been in effect since 2007. Previous research established that the use of quota price...