Stabilization Policies

Agriculture is one of the least stable Canadian industries with respect to product prices, the volume of production of many products, and the net incomes received by farmers. Each of these aspects of instability has negative impacts on the income and financial security of farmers as well as on the rest of the economy. Price instability irritates many consumers. Variation in volume of output affects employment levels and unit costs in those industries handling agricultural products. Variation in farm income has similar effects on farm supply firms and consumer goods and service industries in predominantly agricultural regions.