Definition
Agriculture support is the annual monetary value of all gross transfers from taxpayers and consumers, both domestic and foreign (in the form of subsidies arising from policy measures that support agriculture), net of the associated budgetary receipts, regardless of their objectives and impacts on farm production and income, or consumption of farm products.
For agricultural products, the total support estimate represents the overall taxpayer and consumer costs of agricultural policies. When expressed as a percentage of GDP, the total support estimate is an indicator of the cost to the economy as a whole.
Goal/targets addressed
Goal 8. Develop a global partnership for development.
Target 12. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system. Includes a commitment to good governance, development and poverty reduction—both nationally and internationally.
Target 13. Address the special needs of the least developed countries. Includes: tariff and quota-free access for least developed countries’ exports; enhanced programme of debt relief for HIPCs and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction.
Target 14. Address the special needs of landlocked countries and small island developing States (through the Programme of Action for the Sustainable Development of Small Island Developing States and the outcome of the twenty-second special session of the General Assembly).
Target 15. Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term.
Rationale
In penetrating foreign markets, developing countries also face not only tariffs but competition from products in developed countries that benefit from government subsidies. The challenge linked to the Doha Development Agenda is to further reduce production and trade-distorting support and implement policies that effectively address both domestic and international goals, while ensuring well-functioning markets.
Method of computation
The agricultural total support estimate includes support to individual farmers from trade barriers that keep domestic farm prices above those on world markets, budget-financed payments, input subsidies, consumer food subsidies and support to general services provided to the agricultural sector as a whole.
References
Agricultural Policies in OECD Countries: Monitoring and Evaluation, annual, Organisation for Economic Co-operation and Development.
Organisation for Economic Co-operation and Development, PSE/CSE database (www.oecd.org/agriculture).
Periodicity of measurement
Annual.
Comments and limitations
Differences across countries in total support estimates as a percentage of GDP reflect the level of support and the share of agricultural output in the economy. Changes over time reflect changes in the level of support and in the share of agriculture in GDP, as well as the growth of the economy.
Agency
Organisation for Economic Co-operation and Development.