Abstract
AbstractThe objective of this study was to understand the impact of tax and social program policies on competitiveness in trade. A case study approach was used, comparing returns to representative wheat farms located in Montana and Alberta. The principal analytical tool was a financial simulation model. The results suggest farmers in Alberta have significant tax and social program advantages and that, for the base scenario, these advantages outweighed government farm program and production cost advantages enjoyed by the Montana farmer. Taxes and social program advantages became relatively less important with an increase in farm size.
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