Environmental and farm commodity policy linkages in the US and the EC

Analyses restrictions on agricultural chemicals in the US and the EC under various farm commodity policy scenarios using a partial equilibrium simulation model. The model has three regions (US, EC, rest of the world) and four commodities (wheat, maize, coarse grains, soybeans). Medium- and long-run impacts are derived. Given existing farm programmes, US landowners gain from chemical restrictions while EC landowners generally lose. Given bilateral elimination of farm programmes, both US and EC landowners gain from chemical restrictions. Bilateral farm programme elimination without chemical restrictions induces a shift in chemical usage from the EC to the US. -Authors