The objective of this paper is to estimate three measures of transfer efficiency that are of concern to policymakers. These are (1) the capitalization of support into farmland values, (2) the rate of income stabilization, and (3) the effect of past government support on the variance of income. Results show significant differences between Canadian regions in the effectiveness of stabilization. There is a significant inverse relation between government support payments and farm income across all regions. However, for the Maritime Provinces there is a noticeable lower rate of stabilization, as well as an unexplainable upward trend in support. Results for the third objective show that the variance of income is significantly correlated with past levels of government payments. This indicates that government support is motivating producers to make risky decisions, thus creating a moral hazard problem in the Canada agriculture sector.