To date, there has been little published that synthesizes and draw lessons from the economics of agricultural policy. This study fills that void, providing an economic analysis of the policies that affect agriculture and agribusiness in both Canada and the United States.

The authors emphasize the role of farmers and agribusiness in the formation of policy, exploring the farm problem from both economic and historical perspectives. The various institutions that influence the development and implementation of policy are also discussed and compared. Because of the importance of international trade to North American agriculture, one chapter is devoted to a discussion of trade models. The book then goes on to analyze specific problems, such as price and income stabilization, science policy, environmental policy, and food quality and safety. The role of vertical markets in agriculture is emphasized throughout. The authors combine the traditional welfare economics framework with the new institutional economics and rent-seeking behaviour to explain the development of agricultural policy.

This much-needed study will be welcomed by researchers and policy analysts, as well as instructors seeking material for senior undergraduate and graduate courses.

Katherine Baylis is a PhD candidate in the Department of Agriculture and Resource Economics at the University of California at Berkeley.

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Hartley W. Furtan is a professor in the Department of Agricultural Economics at the University of Saskatchewan.

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Andrew Schmitz is a Ben Hill Griffin Jr. Eminent Scholar and professor of Food and Resource Economics at the University of Florida.

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