Grain Transportation Policy and Transformation in Western Canadian Agriculture

杨利霞

Grain Transportation Policy and Transformation

in Western Canadian Agriculture

Canada’s experience with grain transportation policy reform illustrates two broad principles in the design
and implementation of agricultural policy. First, it illustrates the fact that there are important economic
gains to reap from designing agricultural policy in such a way that it does not distort market signals.
Secondly, it demonstrates the ability of the industry to adapt in response to policy change and to take
advantage of new opportunities.
This paper provides an overview of grain transportation policy in Canada over the last 100 years. It
outlines the major policy changes that occurred during this period, and places particular emphasis on the
structural adjustment that occurred following the removal of grain transportation subsidies in 1995. It also
describes some of the challenges associated with policy change, and draws broader lessons for
policymakers who are faced with the difficult task of removing distortions in agricultural markets.