The re-orientation of the direct payments system gives farmers more flexibility in their choice of production, but continues to distort market signals. Mexico’s new policy framework re-links support to the adoption of farm practices to improve land productivity, with potential risk of distorting markets and reducing income transfer efficiency. It covers seven OECD countries or regions (Canada, the European Union, Japan, Korea, Mexico, Switzerland, the United States) and models six commodity markets (wheat, coarse grain, oilseeds, rice, milk and beef) and input market, and it represents policies according to the PSE classification. It is a partial equilibrium model that measures impacts in the medium term. In Canada, supply-management continues to generate significant levels of market price support, in particular in the dairy sector. Although market price support has been reduced significantly in the European Union, tariff quotas and domestic measures continue to protect some sectors significantly, and most direct payments are not linked to specific income criteria.