Sincethe early 1990s, Canadian agricultural policy has shifted from subsidizingcommodity competitiveness to a more market driven approach. The government of Canada uses theCanadian Agricultural Income Stabilization (CAIS) program to offer incomesupport and disaster assistance to producers. CAIS is a whole farm program available to eligible farmersregardless of the commodities they produce. Under this program, producers choose an annual level ofprotection that guarantees between 70% and 92% of their average historicalproduction margin (the production margin is the difference between allowableincome and allowable expenses as defined in the CAIS program). Producers are required to makecontributions to their CAIS accounts that correspond to the level of productionmargin they wish to insure.
Thegovernment of Canada requires a minimum of 5% average renewable fuel content inall transport fuel in Canada by 2010. The Ethanol Expansion Program (EEP) provides capital assistance forplant construction and upgrades. Afederal excise tax exemption allows for support for research and developmentand consumer awareness activities. The biofuel mandate is expected to significantly increase demand inCanada for corn and wheat as sources of biomass for ethanol production anddemand for soybeans for biodiesel.
á The WTO bound importtariff on corn is 0.5%.
á The WTO bound importtariff on milled rice is 0.7%.
á Canadian soybeanexporters earn market premiums by offering non-GMO, identity-preserved soybeansto E.U. and Japanese markets.
á Expanding use ofsoybeans for biodiesel production will likely increase Canadian soybeanproduction and soybean imports from the U.S.
á The WTO bound importtariff on raw sugar is 5.2 % and on refined sugar is 5.4%.
á The Canadian WheatBoard (CWB) acts as a single desk seller of wheat.
á Canada has a TRQ onwheat imports with an in-quota rate of 0.7% (quota amount of 226,883 MT orabout 8 million bu) and an out-of-quota rate of 62.8%. Under the tariff elimination provisionsof the North American Free Trade Agreement (NAFTA), most U.S. agriculturalproducts enter Canada duty free.