Commodity Programs are the major source of agricultural trade distortions and, because trade distortions are larger in agricultural products than in other products, may be the single greatest source of total trade distortions. These programs, designed to promote self-sufficiency and farm income and save family farms, often restrict imports or subsidize exports. Governments have found internal political pressures for commodity programs more difficult to resist than international pressures for open trade markets.

Each of the numerous public policies listed earlier in Table 3.1. has some impact on trade. Some are more tolerated by the world community than others. Policies of (1) agricultural research, extension, and education, and (2) road, port, and irrigation infrastructure development with favorable benefit-cost rations are accepted in worl trade forums. Some policies, i.e. sanitary and phytosanitary border regulations are sources of protectionism when not scientifically or medically justified.

Tabel 3.1. Policies Influencing Competitiveness and Trade a. Direct Trade Intervention : Tariffs and taxes Import and export quotas Export subsidies b. Controlled Exchange Rates : Fixed rates Differential rates Exchange controls, licenses c. Others Macroeconomic Variable Distortions : Interest rates Wage rates Inflation rates

d. Market Price Support : Domestic price supports linked with border measures (quotas, permits, tariffs, variable levies, export restitutions) Two-price system and home consumption schemes Price premiums (often used for fluid milk) Domestic price supports linked with production quotas Government inventory and commodity loan activities Marketing board price stabilization policies State trading operattions e. Commodity Programs : Direct payments – deficiency, disaster, payment in kind (PIK) entilements, stabilization payments Producer c0-responsibility levies (taxes on commodity to pay for surplus disposal) Supply control – marketing quota, acreage diversion, land retirement Storage programs

f. Programs Affecting Marketing of Commodities : Transportation subsidies Marketing and promotion programs Inspection services g. Programs Affecting of Variable Costs of Production : Fertilizer subsidies Fuel tax exemptions Concessional domestic credit for production loans Irrigation subsidies Crop insurance h. Programs Affecting Long-Term Agricultural Productions : Research and extension services Conservations, environmental, and natural resource programs Structural programs to adjust farm size and numbers Infrastructure – roads, ports, etc

1. Farm and Food Commodity Price Ceilings KeteranganTW Country ROW Surplus Konsumen a Surplus Produsen -a-b-c-d1 Penerimaan Pemerintah c+e- Kesejahteraan Nasional -b-d+e Kesejahteraan Dunia -b-d-2-4

2. Productivity Advances and Trade KeteranganWithout Trade With Trade Surplus Konsumena+b+c- Surplus Produsene+f-ab+c+d+e+f Penerimaan Pemerintah -C Kesejahteraan Nasional b+c+e+f-Cb+c+d+e+f- C

3. Loan Rates and Target Price a. Jangka Pendek KeteranganUSAROW Surplus Konsumen -a-b Surplus Produsen a+b+c+d+e+f +h+i 1 Penerimaan Pemerintah -d-e-f-g-h-i- Kesejahteraan Nasional c-g Kesejahteraan Dunia (b+c = 3) -b-g-2-4

KeteranganUSAROW Surplus Konsumen -a-b1+2+3 Surplus Produsen a+b+c+d+e+f +h+i -1-2 Penerimaan Pemerintah -b-c-d-e-f-h-i Kesejahteraan Nasional -b Kesejahteraan Dunia (b+c = 3) -b-2-4 b. Jangka panjang

4. Mandatory Controls Umumnya untuk komoditas dengan jumlah besar yang dihasilkan suatu negara (i.e. wheat, rice, cotton) KeteranganNegara USA ROW Surplus Konsumen-a-b Surplus Produsena+b+c-d1 Kesejahteraan Nasional c-d Kesejahteraan Dunia (because b+c = 3) -b-d-2-4

5. Self-Sufficiency (i.e. Rice in Japan) Producer subsidy to increase cost (high cost) of policies are paid mainly by consumers because much cheaper import are kept out a. Current Policy KeteranganJapanROW Surplus Konsumen-e-f-g Surplus Produseng Penerimaan Pemerintah -- Kesejahteraan Nasional -e-f Kesejahteraan Dunia (b+c = 3) -e-f

b. Semi-decoupling KeteranganJapanROW Surplus Konsumena+b+c1 Surplus Produseng Penerimaan Pemerintah -a-b-f-g- Kesejahteraan Nasional c-f Kesejahteraan Dunia (c+d = 3) -d-f-2-4

Oilseed Subsidy in European Community KeteranganECROW Consumer gainc+d+e1 Producer gaina Government or taxpayer gain -a-b-c-d- Net national welfare e-b Net world welfare (e+f = 3) -b-f-2-4

Referensi Tweeten, L Agricultural Trade: Principles and Policies. Westview Press, San Fransisco. (T). Chapter 5