Food and agricultural policy reform; the case of Venezuela

Abstract

Venezuela has recently taken steps towards reducing government intervention in agriculture. Based on simulation experiments, this article finds that agricultural policy reform leads to greater dependence on imports of corn and sorghum, but production and exports of ruminant and non-ruminant meats increased because of higher output prices. Overall, producers benefit from sector-specific and macroeconomic policy liberalization. In addition, government budgetary pressures are ameliorated but consumers bear significant cost increases. The results indicate that the effects of Venezuelan agricultural reform would be further enhanced by world agricultural trade liberalization.