Agricultural policies and support

PSE Manual

 

TABLE OF CONTENTS

Full text (pdf)

Acknowledgements

Acronyms and Abbreviations
Symbols Used in Formulas

Part I   Main Concepts

Chapter 1. Introduction

1.1. Objectives
1.2. Target readership
1.3. Structure

Chapter 2. Overview of the OECD indicators of agricultural support

2.1. Why measure agricultural support?
2.2. Overview of support indicators: key terms, definitions and distinctions
2.3. Basic principles of measuring support
Annex 2.1. A Short History of the Indicators

Chapter 3. Identifying, distinguishing and classifying policies

3.1. Identifying policies that support agriculture
3.2. Distinguishing between policies according to economic group
3.3. Classifying and labelling policies that support producers individually (PSE)
3.4. Classifying policies that support producers collectively (GSSE)
3.5. Classifying policies that support consumers (CSE)

Part II. Calculating Support Indicators

Chapter 4. Estimating policy transfers: price transfers

4.1. Price transfers arising from policy measures: a graphical analysis
4.2. Price transfers to producers
4.3. Price transfers from consumers
4.4. Market Price Differential (MPD)
4.5. Calculating an MPD based on the price gap method
4.6. Alternative methods for calculating an MPD
4.7. Work examples
Annex 4.1  Methodology for Calculating the Border Price for Milk

Chapter 5. Estimating policy transfers: other transfers

5.1. Budgetary transfers
5.2. Support based on revenue foregone
5.2.1. Tax concessions
5.2.2. Preferential lending
5.2.3. Agricultural debt concessions
5.2.4. Administered input prices

Chapter 6. Calculating indicators of support to producers

6.1. Market Price Support (MPS)
6.2. Producer Support Estimate (PSE)
6.3. Percentage PSE (%PSE) and Producer Nominal Assistance Coefficient (Producer NAC)
6.4. Indicators of producer support based on the degree of commodity specificity
6.5. Producer Nominal Protection Coefficient (producer NPC)
6.6. Percentage Producer Single Commodity Transfers (%SCT)
Annex 6.1. Commodity Groups Applied in OECD Countries

Chapter 7. Calculating indicators of support to consumers

7.1. Consumer Single Commodity Transfers for individual commodities  (Consumer SCT)
7.2. Consumer Support Estimate (CSE)
7.3. Percentage CSE (%CSE) and Consumer Nominal Assistance Coefficient (Consumer NAC)
7.4. Consumer Nominal Protection Coefficient (Consumer NPC)

Chapter 8. Calculating indicators of support to general services and total support to agriculture

8.1. General Services Support Estimate (GSSE)
8.2. Total Support Estimate (TSE)
8.3. Percentage GSSE (%GSSE) and Percentage TSE (%TSE)

Chapter 9. Calculating indicators of support for the OECD as a whole

9.1. Conversion into a common currency
9.2. Aggregation to OECD totals

Chapter 10. Data and information requirements for calculating the indicators

10.1. Requirements for calculating price transfers
10.2. Requirements for calculating budgetary and other transfers

Part III. Interpreting and Using the Indicators for Policy Analysis

Chapter 11. Interpreting the indicators

11.1. Interpreting the level of support
11.2. Interpreting the composition of support
11.3. Some common misunderstandings of the indicators
Annex 11.1. Comparing the OECD Indicators of Support to Producers with other measures of support

Chapter 12. Using the indicators in OECD policy modelling

12.1. Policy Evaluation Model (PEM)
12.2. GTAPEM 
12.3. Modelling environmental policies


References


Tables

Table 2.1. The OECD indicators of agricultural support
Table A2.1. Development of PSE categories
Table 3.1. PSE categories and labels
Table 3.2. Work examples of PSE categories and labels
Table 4.1. Border prices and alternative methods used to derive the MPD by country
Table 4.2. Methods used for adjusting prices for quality difference
Table 4.3 WHEAT: Calculation of a MPD for a net importer
Table 4.4. WHEAT: calculation of a MPD for a net exporter
Table 4.5. SUGAR: Calculation of a MPD for a net importer
Table 4.6. SUGAR: Calculation of a MPD for a net importer
Table 4.7. BEEF: Calculation of a MPD for a net importer
Table 4.8. BEEF: Calculation of a MPD for a net exporter
Table A4.1 MILK: Calculation of an implicit Reference Price and MPD
Table 6.1. Individual commodities for which MPS is calculated in OECD and non-OECD countries
Table 6.2. Selection of individual commodities for MPS estimation (example)
Table 6.3. Calculation of MPS for individual commodities (example)
Table 6.4. Calculation of EFC for livestock commodities (example)
Table 6.5. Calculation of national (aggregate) MPS (example)
Table 6.6. Calculation of MPS for Other Commodities (example)
Table 6.7. Calculation of PSE  (example)
Table 6.8. Calculation of %PSE and Producer NAC  (example)
Table 6.9. Indicators of producer support based on the degree of commodity specificity
Table 6.10. Attribution of PSE policies to commodities (example)
Table 6.11. Calculation of producer SCT (example)
Table 6.12. Calculation of GCT (example)
Table 6.13. Calculation of producer NPC for individual commodities (example)
Table 6.14. Calculation of a national (aggregate) producer NPC (example)
Table 6.15. Calculation of a producer NPC for Other Commodities (example)
Table 6.16. Calculation of %SCT for individual commodities (example)
Table 6.17. Calculation of a national (aggregate) %SCT and a %SCT for Other Commodities (example)
Table 7.1. Calculation of consumer SCT for individual commodities (example)
Table 7.2. Calculation of CSE  (example)
Table 7.3. Calculation of %CSE and consumer NAC (example)
Table 7.4. Calculation of consumer NPC for individual commodities (example)
Table 7.5. Calculation of a national (aggregate) consumer NPC (example)
Table 7.6. Calculation of a consumer NPC for Other Commodities (example)
Table 8.1. Calculation of GSSE (example)
Table 8.2. Calculation of TSE (example)
Table 8.3. Calculation of %GSSE and %TSE (example)
Table 11.1. Indicators of producer support (example)
Table 11.2. Composition of PSE (example)
Table 11.3. Breakdown of PSE by degree of commodity specificity (example)
Table 11.4. Composition of GSSE by category (example)
Table 11.5. Composition of TSE by recipient of transfer  (example)
Table 11.6. Composition of TSE by source of transfer (example)
Table AII.1. Policy coverage of other measures of support
Table 12.1. How different PSE categories may be represented in PEM


Figures and Diagrams

Diagram 3.1. PSE classification decision tree
Figure 4.1. Price transfers associated with policies that increase the domestic market price
Figure 4.2. Price transfers associated with policies that decrease the domestic market price
Figure 4.3. Schematic presentation of value added chain
Diagram 6.1. Procedure for calculating producer support indicators
Diagram 7.1. The procedure for calculating consumer support indicators
Diagram 8.1. The procedure for calculating indicators of support to the sector
Diagram 9.1. The procedure for calculating the OECD total PSE
Figure 11.1. Evolution of %PSE, producer NAC and producer NPC (example)
Figure 11.2. Producer %SCTs by commodity (example)
Figure 11.3. Producer NPCs by commodity (example)
Figure 11.4. Composition of PSE (example)
Figure 11.5. PSE level and commodity specificity (example)
Figure 12.1. Relative policy impacts on domestic production
Figure 12.2. Relative policy impacts on farm welfare
Figure 12.3. Probability distribution of impact ratios for production quantity


Boxes

Box 2.1. Names and definitions of the OECD indicators of agricultural support
Box 3.1. Some issues not explicitly dealt with in the PSE framework
Box 3.2. Names and definitions of the PSE categories and sub-categories
Box 3.3. Names and definitions of the PSE labels
Box 3.4. Names and definitions of the GSSE categories
Box 4.1. Setting a negative price gap to zero
Box 4.2. Calculating MPD for a commodity with seasonal markets
Box 6.1. Description of a country PSE file
Box 11.1. Use of %PSE in evaluating annual changes in agricultural support for the OECD area as a whole
Box 11.2. Comparing changes in the %PSE and producer NAC
Box 11.3. Showing changes in support over time
Box 11.4. Why does the PSE change when world prices change
Box A11.1 Support indicators in non-OECD agricultural policy studies

 

 

 

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