Canadian agriculture has what is known as "Supply Management". This horrific system limits production and generates quota values worth millions to the farmers who own them.
The problem with supply management is twofold:
- As Jack Mintz writes in the Financial Post,
In my view, the worst moment during the French debate was listening to five political leaders grovelling over supply management policies in agriculture. Supply management was one of the worst policies brought in during Pierre Elliot Trudeau’s era to support dairy, eggs and poultry farmers by restricting supply. Quotas limit production, leading to higher prices for consumers, especially hitting hardest low income Canadians.
- And once the quota values are created, it is very hard to get rid of them. Farmers who own (or who have borrowed to purchase) quota worth millions of dollars will use every conceivable argument to justify their quasi-monopoly positions. My take: too bad. You gambled on gubmnt policy and you deserve to lose. ... for the sake of consumers.