WEEK 5 POLICY AND HUMAN HEALTH

Question 1

A Model of the Links Between Farm
Policy and Obesity

Question 2

Model of the links between farm policy and obesity

Answer 2

so basically farm commodities are aggregated into 10 commodities by OECD and other

subsidies tattigd rand d and tariffs affect these and the cost shares and industry shates determines retaid food products

just look at notes

Question 3

consumer support measure value

Answer 3

for farm commodities consumer support measures value have interpretations

positive means consumer subsidy; negative means tax

consumets of grain crops and meat are effectively subsidized by 18% and 20.7%

for meat its because the ingredients used to produce meat are heavily subsidized (inouts subsidized) relays to final subsidy

consumers of vegetables and melons; fruits and tree nuts; sugar cane; fish and aquacutlure; dairy cattle are taxed by tariffs paid at border

Question 4

Scenario where support on grains and oilseeds are removed

Answer 4

Subsidies for these crops are the
major concern among the critics that
link agricultural policies to obesity

price inc for ingredients might see obesity rated decline

decrease in caloric consumption

Question 5

Scenario where all support is removed

Answer 5

inc in calproe consumptions
likely to import more and end up increasing consumption

in dairy indudstry if fmmo remvoed, dairy prices fall; dairy consumption increases

Question 6

magnitude of effects

Answer 6

small and modest

over year so not much of a change

the cost share of farm commodities is so small; so heavily subsidized products as a total crop share–> thus effects pretty small

Question 7

summary

Answer 7

Effects of policies on food consumption, and
caloric intake is modest and mixed, overall
 The effects are largest for sugar and dairy
 Removing grain and oilseed support would
lead to a decrease in caloric intake by about
1400 kcal per person per year
 The critics are correct, but the impact is small
 Removing all agricultur al support would
increase total annual consumption by
approximately 3000 kcal
 Over the past two decades the effects of
agricultural policy on caloric intake has not
increased, and more likely has fallen

All farm commodities have become much
more abundant and cheaper generally
over the past 25 years in the U.S.
This abundance mainly reflects the
effects of technological innovations and
increases in farm productivity, not
agricultural policies.
There are many reasons to be critical of
U.S. (and EU and Japanese) agricultural
policies, but our analysis indicates that
removing them would have little impact
on obesity.
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