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The OECD has, since 1987, measured support to agriculture using the Producer Support Estimate (PSE) and Consumer Support Estimate (CSE). With the reform of agricultural policies in OECD countries, the number and complexity of policy measures has increased significantly and the OECD classification of policy measures has evolved. The basis of the OECD classification system presented here is the grouping of policy measures according to their implementation criteria - independently of their objectives and effects. A given objective may be achieved through different measures and the economic impacts depend on the way they are implemented.

This document explains the coverage, definitions, criteria of classification and methods of calculating the OECD indicators of support associated with agricultural policies. It elaborates on the meaning and interpretation of the concept of market price support and the main indicators of support, and on the way the PSE and related indicators are used for policy evaluation.

The current classification system was presented for the first time in the 1999 edition of the report Agricultural Policies in OECD Countries -- Monitoring and Evaluation. It also provided the opportunity to "clean up" the databases and calculations for each country to improve consistency. A description of the policies covered, and the detailed results for all countries, as well as the documentation of the data sources, are available in the annual OECD PSE/CSE Database (CD-ROM).

The OECD Secretariat has continually made efforts to ensure consistency in the treatment and completeness of coverage of policies. Revising the calculations and improving consistency in the light of more updated data and information on policy measures is an ongoing process undertaken annually with the preparation of the Monitoring and Evaluation report.