| Nominal grain and oilseed prices have declined dramatically from the high levels observed in the mid-1990s. As a result, it has been suggested by some industry stakeholders that measures should be taken to limit world crop supplies to raise prices. One such measure is a set-aside program involving a number of participants that would significantly reduce the quantity of land in production over a certain period of time. In fact, the European Union and the United States currently have set-aside programs that, together, already have had a positive effect on crop prices. Set-aside programs could also become relevant if the use of the World Trade Organization blue box is extended to more countries after the next round of negotiations. This analysis focuses on... |
