First World War. In 1959, the Canadian Government found that support for certain
lines of production contributed to increased production and new programmes
were introduced involving deficiency payments to farmers. Since wheat produced
in the main producing area was marketed through a government agency, the
Canadian Wheat Board, it did not qualify for support. For dairy products, there
was no limitation on production in the price support programme.
Later, emphasis was placed on such factors as the need to reduce imports because of
the dollar gap, as in Western Europe, or to maximize foreign exchange availabilities
for the purchase of capital goods, as in Latin America, the Near East and the Far
East. As supplies became more plentiful, greater attention was paid, especially in
Western Europe and Japan, to improving and safeguarding the economic position
of farmers. This involved income protection and various measures of price and
income support, and led to subsidized exports. Eventually, during the early 1950s,
especially in some Western European countries, increasing attention was given to
problems of surplus production in some agricultural commodities.