What is an agricultural tariff?

Question

would this lead to an increase in the cost of other goods in a country? and why if it does?

Answer 1

Ag tariffs typically have to do with import/export issues.  Governments will place tariffs on certain food or commodity items as a way of restricting the movement of those products into a country.  For example the US govt. places a 52 cent tariff (more or less) on the importation of ethanol.  The US is deterring any other country from importing their ethanol into this country.  If imports were allowed it may have a deterring affect on the growth of ethanol plants in this country.

Answer 2

It when you create a stream of water that waters your fields from a natrual water source

Answer 3

tariffs lead to price increase for consumers; tariffs protect local producers at the expense of local consumers.  Ethanol is a good example, the cost of producing sugarcane ethanol in Brazil is lower than cellulitic ethanol that comes from corn.  Lets say that the cost is $1.00/ gallon for the U.S. to produce ethanol and $0.52 for Brazil to produce ethanol plus another $0.25 to transport the ethanol to the U.S. from Brazil.  Total cost is $0.77/ Gallon thus, without the tarriff that is what Americans would pay with the tariff, you pay $1.00

Answer 4

An agriculture tariff is a price increase charged to a product imported into a country to keep the price equal to the price of the same produced in your country. For example if wheat was selling for $1.50 in the US and Mexico was selling wheat for $1.00 exporting it to the US.  A tariff of $.50 would be added to the price the importer must pay for the Mexican wheat so that it would not have a price advantage over US produced wheat.

Answer 5

A tariff is a form of protection of domestic industry by limiting the entry of imported goods. It is tax and thus, increases prices. In effect, the domestically produced goods appear cheaper because of the addition of a tax on the imported goods, particularly if the imported good comes from a country that can produce it at a much lower cost and thus, can sell it at a much lower price than the domestically produced good. Say, for example, if Vietnam can produce more cheaply than the Philippines, we can import Vietnam's rice and be able to provide it at a much lower price than if we produce our own rice (which may face higher production and transport costs). However, to protect our rice farmers, government can impose a tariff so that Vietnam's rice will be sold locally at a price that includes not only production and transport costs, but also the tariff imposed.