Name: 加拿大如何帮助奶农（How Canada Helps Its Dairy Farmers (And Why Trump Hates It)）
Uploaded: 2021-04-20T13:57:48.000Z
Duration: 6 min 18 s
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It's not a good time to be a dairy farmer in the United States.

It hasn't been for a while. Milk prices have dropped below

the cost of production for four years in a row

and thousands of dairy farms close every year.

can produce greater amounts of milk. Too much milk.

Tidal waves of milk in the American market lower prices,

leaving some farmers to just dump thousands and thousands of

unprofitable gallons. Similar stories have played out

in Australia and around the European Union. But

it's by no means universal. Dairy farmers struggling in

Wisconsin and Michigan just have the peak across the northern border to

Dairy production ramped up during World War II and the subsequent

reconstruction of Europe. But that demand dried up by the mid to late

overwhelmed with excess dairy products. Some countries started

subsidizing their dairy farmers directly. Even today, one study

estimates that dairy subsidies cost American tax payers about

Often in Canada we say, "you know Americans pay twice for their

milk; once at the supermarket and another time through their taxes."

But not Canada. Instead, Canada implemented a

three part supply management system that empowered their

dairy farmers. Here's how it works: the first

part controls production. To sell their products, Canadian dairy

farmers must have a quota, or a license to produce a

set amount of milk. Basically, provincial marketing agencies

predict how much dairy products Canadian consumers will buy

that year. And it uses those numbers to set the quotas. Farmers buy

more quotas or sell off their existing quotas, depending on how

much they expect to produce. So these quotas prevent overproduction

of dairy. Which in turn prevents prices from

The second part guarantees minimum prices for Canadian dairy farmers.

Imagine that: from one year to the next, the price of  cow feed jumped by 20 percent.

Normally, that would cut into a dairy farmer's profits. In Canada

however, milk marketing boards in each province  negotiate

with milk processors to set a minimum price

that takes into account these price fluctuations. So farmers are compensated

The third and final part of the supply management system  takes aim at

foreign dairy. Every year Canada imports an allotted

around 10 percent of its total domestic market, with

low or no tariffs. After that, tariffs shoot up

Sometimes up to 300 percent. This prevents foreign dairy

from flooding the market and encourages Canadians to buy Canadian

products. So this is how Canada tries to keep its

dairy farmers in business. It has a vested interest in

doing so, as the industry is the backbone of many rural communities.

nearly $20 Billion to Canada's GDP in 2015.

Some Canadians dislike this system, arguing that consumers pay

more for dairy products than elsewhere. Whats more,

some critics of the program in Canada argue that the government props up

dairy farmers more than it should,  resulting in an average income for

dairy farmers of exceeding $160,000 dollars,

and what one agricultural experts calls, "a sense of entitlement by

the sector", which has a powerful lobby at both the Federal and

a 2017 Neilson study showed Canada's milk prices are on

par with prices from similarly developed nations. And

at least one public opinion poll puts Canadian support for the system

qualitative as opposed to mere the quantitative I

think you'd opt for the Canadian system over the

that rural people in Canada lead is much, much, much more

robust, than the rural lifestyle of people in the US".

Internationally though, Canada's system has fewer fans.

Since the 1980s, Canada's trading partners have repeatedly demanded

defenses, with some calling into question the legality of the

quota system under World Trade Organization laws.

The fight over milk between the US and Canada has played out

in free trade agreements from the mid 1990s onward.

It revolves around how much of Canada's domestic dairy market

will be filled by tariff free imports from the US.

Under NAFTA, the figure is disputed. One USDA official

exports to Canada were tariff free under NAFTA".

But other experts cite the figure at around 1% - 3%.

During negotiations  for the Trans-Pacific Partnership, the Obama

administration secured 3.25% of the Canadian market

President Trump pulled out of that agreement in January 2017. The President

sees Canada's system as deeply unfair to American dairy

farmers in Wisconsin, and other border states.

So during the talks the renegotiate NAFTA, he threatened

to leave Canada out of the agreement, and impose steep tariffs on

cars if they didn't offer dairy concessions.

total domestic dairy market will be comprised of imports from the US,

"We think it's a great deal, obviously US, Mexico,

Canadian deal, its good for agriculture. I think its

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