Tag: Producer Support Estimate

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OECD Agricultural Policy Monitoring and Evaluation Report 2013

Today the OECD published its annual update of trends in producer and consumer support to farmers (measured as the Producer Support Estimate, PSE and the Consumer Support Estimate, CSE, respectively). It shows overall support levels rising in 2012, following the historical low recorded in 2011.

For the OECD countries the share of support in farm receipts is 19%, up from 18% the previous year. There are sharp divergences behind these figures with the highest support countries recording increases (Japan 56%, Korea 54%, Norway 63% and Switzerland 57%) while relatively low support countries fell further (Israel 11%, Mexico 12%, United States 7%). The EU mirrors the overall OECD trend with a rise from 18% to 19%.

Some emerging economies which are key players in agriculture continued to increase support to their farmers – for China, the share of support in producer receipts is now 17%, for Indonesia 21% and for Kazakhstan 15%.… Read the rest

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OECD reports EU farm transfers at lowest level ever

The OECD produced the 2012 edition of its Agricultural Policy Monitoring and Evaluation report during the week. This is the publication that keeps tabs on the transfers to and from farmers and consumers as a result of government policy interventions. It also usually contains a chapter on a special theme, which this year is devoted to fostering innovation and productivity growth in agriculture.

General findings

The results are summarised in a series of indicators, of which the most well-known is the Producer Support Estimate (PSE) usually expressed in percentage terms. It measures the percentage of farm receipts in a country that is due to public policies.

Another useful indicator is the Nominal Protection Coefficient (NPC) which measures the ratio between the average price received by producers (at farm gate), including payments per tonne of current output, and the border price (measured at farm gate).

The report finds that in 2011 support to producers across the OECD area amounted to €182 billion as measured by the Producer Support Estimate (PSE).… Read the rest