The inclination is clearly to put forward tax credits that support innovation. In the agricultural sector, with the size of businesses and farmers' bottom lines, the tax credit would have to be fairly significant. It can, however, have a limited impact, especially since we are entering a period where margins are going to drop. That's what we are observing.
Things have been fairly good in the past few years, but with the downturn, higher production costs and lower market prices, on the horizon, we definitely see farmers' margins and net revenue declining. A tax credit could be helpful, but would probably have a smaller impact.
Subsidies are certainly an important tool. The countries that make the smartest and largest investments will probably be the ones that come out on top. Of course, producers and the industry have to do their share as well.
How much investment is required? It's hard to say today. All I can tell you is that, in today's dollars, the government reduced its support for innovation.
Do we need fewer subsidies than before? Are we doing a better job innovating than we have in years past? I can't answer that, but I can tell you that, for grain producers, it's always better to invest more, as opposed to not enough. This may be a conflict of interest, I'll admit.