Market Effects of Crop Support Measures [electronic resource] /
Organisation for Economic Co-operation and Development.
Organisation for Economic Co operation and DevelopmentContent Provider
Organisation for Economic Co-operation and DevelopmentContent Provider
Paris : OECD Publishing,
2001.
Governments in many OECD countries intervene in agricultural markets to boost crop producer returns by applying tariffs to the prices of imported cereals and oilseeds and/or subsidising prices paid by foreign buyers. Historically, market price support attributable to such interventions comprised the lion’s share of total financial support afforded crop producers in OECD countries. In recent years, however, the share of crop producer support due to trade policy measures has declined, while that due to payments made directly from government budgets has increased. This publication compares the market impacts of market price support and several kinds of budgetary direct payments using indicators of economic efficiency and trade distortion. The main finding is a numerical ranking of the support measures studied showing a close inverse relationship between trade distortion and transfer efficiency. That is to say, those support measures found to be most efficient in transferring income to farmers are least distorting to trade.
Description based upon print version of record.
CONTENTS; Executive summary; MARKET EFFECTS OF CROP SUPPORT MEASURES; I. Introduction; II. Qualitative analysis of differences in policy effects among support measures; III. Quantitative differences amongst support measures; IV. Conclusions and policy implications; References; Annex 1. Model documentation and additional results; I. Crop model structure, parameters and elasticities; II. Country results from simulation experiments comparing policy effects among supportmeasures; References; Annex 2. Elasticities of substitution and factor supply in Canadian, Mexican and United States agriculture
I. IntroductionII. Estimates of elasticities of substitution; III. Estimates of factor supply elasticities; IV. Suitability of available estimates for the PEM project; V. Plausible ranges of parameter values; VI. Procedures for dealing with parameter uncertainty; References; Annex 3. Elasticities of substitution and factor supply elasticities in European agriculture: a review of past studies; I. Introduction; II. Elasticities of substitution; III. Factor supply elasticities; IV. Statistical procedures for sensitivity testing
V. Suitability of the available estimates for modelling the effects of agricultural policychangesReferences
Includes bibliographical references.
Governments in many OECD countries intervene in agricultural markets to boost crop producer returns by applying tariffs to the prices of imported cereals and oilseeds and/or subsidising prices paid by foreign buyers. Historically, market price support attributable to such interventions comprised the lion’s share of total financial support afforded crop producers in OECD countries. In recent years, however, the share of crop producer support due to trade policy measures has declined, while that due to payments made directly from government budgets has increased. This publication compares the market impacts of market price support and several kinds of budgetary direct payments using indicators of economic efficiency and trade distortion. The main finding is a numerical ranking of the support measures studied showing a close inverse relationship between trade distortion and transfer efficiency. That is to say, those support measures found to be most efficient in transferring income to farmers are least distorting to trade.
Agricultural subsidies
Agriculture