ROMANIA: ESTIMATES OF SUPPORT TO AGRICULTURE

DEFINITION AND SOURCES

            Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

            Market Price Support (MPS) and CSE by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, oats, rapeseed, soybeans, sunflower, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

            Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

The description of budgetary measures in Table 1 covers the period 1995-2005.

Table 1. Total Support Estimate

Definitions:

I. Total value of production (at farm gate): total agricultural production valued at farm gate prices, i.e. value (at farm gate) of all agricultural commodities produced in the country [1].

1. Of which share of common commodities (%): share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.

II. Total value of consumption (at farm gate): consumption of all commodities domestically produced valued at farm gate prices, and estimated by increasing the value of consumption (at farm gate) of the MPS commodities according to their share in the total value of agricultural production [(II.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the value of consumption (at farm gate prices) of the MPS commodities produced in the country as indicated in Table 2.

III.1 Producer Support Estimate (PSE): associated with total agricultural production, i.e. for all commodities domestically produced (Sum of A to H, when negative, the amounts represent an implicit or explicit tax on producers).

A. Market Price Support: on quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

Premium for milling wheat (1998-2001): payment per tonne of wheat.

Premium for milk (from 2000): payment per litre of cow or buffalo cow milk. The payment is granted to agricultural producers selling milk to economic operators specialized in milk processing and having an appropriate producing license, without production limit.

Premium for sheep milk (2004): payment per litre of sheep milk.

Supplementary price payments for production to be sold (from 2002): payments per tonne of wheat and rye, barley, maize, rapeseed, sunflower, soybeans, sugarbeet, and other crops.

Production subsidies (from 2002): payments per tonne of beef, poultry, pig, eggs. Budgetary expenditures are identified for each commodity.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Beef premium (from 2002): payment per head of cattle.

Pig premium (from 2003): payments per head of pig.

Premium for sheep (2005): payments per head of sheep.

Area payments (from 2001): payment per hectare of crops.

2. Based on limited area or animal numbers

D. Payments based on historical entitlements

E. Payments based on input use

1.      Based on use of variable inputs

Soil improvement subsidy (until 1995): budgetary expenditures on support for amendment of acid and alkaline soils used for crops.

Fertiliser subsidy (2000, 2003): budgetary expenditures on coupons, paid per hectare, for purchasing fertilisers for crops.

Seed subsidy (from 2001): budgetary expenditures on a subsidy paid to authorised seeds producers and dealers, covering 40% or 50% of the price, depending on the crop. The agricultural producer purchases those seeds at 50% or 60% of the nominal price. Maize is no longer eligible from 2004.

Storage cost compensation for wheat (1997-99, 2003, 2005): budgetary expenditures on support to compensate farmers for the costs of wheat storage.

Subsidies for imported fodder (1992-96): budgetary expenditures on support to imported soybeans and wheat.

Voucher allocations (1999-2000, from 2002): budgetary expenditures on coupons paid per hectare for purchasing various inputs, such as seeds, fertilisers and pesticides used for crops.

Diesel subsidy (1999, 2001, 2003, 2005): budgetary expenditures on coupons paid per hectare for purchasing diesel fuel.

Short term interest concession (1992-2001): budgetary expenditures on interest concessions for short loans to purchase variable inputs.

Insurance (from 2003): budgetary expenditures on insurance subsidies for all commodities.

Animal breeding (from 2000): budgetary expenditures on support for artificial insemination of cattle, pigs and poultry. The price of the selected seminal material is subsidised 100%.

2.      Based on use of on-farm services

Veterinary services (before 1999, 2002-2005): budgetary expenditures.

Phytosanitary services (before 1999): budgetary expenditures.

3.      Based on use of fixed inputs

Capital grants for machinery and livestock facilities (2000-2001): budgetary expenditures on grants for machinery and livestock facilities.

Long term credit concession (from 1995): various budgetary expenditures on interest concession for investment loans.

Support for purchasing domestic machinery (investment) (from 2002): budgetary expenditures.

Interest concessions and debt write-off for pig and poultry producers (1992-96): budgetary expenditures.

SAPARD farm investment support (from 2004): support from SAPARD on investments in farm holdings.

F. Payments based on input constraints

1.      Based on constraints on a set of inputs

2. Based on constraints on fixed inputs

3. Based on constraints on a set of inputs

G. Payments based on overall farming income

1.  Based on farm income level

2.  Based on established minimum income

H. Miscellaneous payments

Material expenditures (until 1997): residual expenditures.

1.      National payments

III.2 Percentage PSE [(III.1) / ((I) + (Sum of B to H)) x 100]

III.3 Producer NAC [1 / (100 - (III.2)) x 100]

IV. General Services Support Estimate (GSSE): total budgetary expenditure to support general services provided to agriculture Sum of I to O.

I. Research and development

Research and development (1991-2001, 2004): budgetary expenditures.

J. Agricultural schools

No information available.

K. Inspection services

Test and certification of seed varieties (until 2001): budgetary expenditures.

Agricultural veterinary laboratories (until 2001): budgetary expenditures.

Pest and disease control (until 2001): budgetary expenditures.

L. Infrastructure

Investments in infrastructure (until 2001): budgetary expenditures.

Land reclamation (from 1986): budgetary expenditures for maintaining land reclamation systems (dams, dikes and embankments), irrigation and drainage systems, the necessary electric power to bring water to pumps in the irrigation systems and evacuating the water from the drainage systems belonging to the National Company for Land Reclamation.

Water users association (from 2002): budgetary expenditures.

SAPARD rural infrastructure support (from 2003): support from SAPARD on investments in rural infrastructure.

SAPARD diversification support (from 2004): support from SAPARD on diversification of economic activities in rural areas.

M. Marketing and promotion

SAPARD marketing promotion support (from 2003): support from SAPARD on marketing promotion.

N. Public stockholding

O. Miscellaneous

V.1         Consumer Support Estimate (CSE): associated with agricultural production, i.e. for the quantities of commodities domestically produced, excluding the quantities used on-farm as feed – excess feed costs [(P) + (Q) + (R) + (S); when negative, the amounts represent an implicit tax on consumer].

              P. Transfers to producers from consumers: associated with market price support on all domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(P.1) / (I.1) x 100]

              1. Of which common commodities: sum of the values of transfers from consumers to producers associated with market price support on the common commodities produced in the country as calculated in   Annex Tables IV.2.

              Q. Other transfers from consumers: transfers to the budget associated with market price support on the quantities imported of domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(Q.1) / (I.1) x 100]

              1. Of which common commodities: sum of the transfers to the budget associated with market price support on the quantities imported of the common commodities produced in the country as calculated in Annex Tables IV.2.

              R. Transfers to consumers from taxpayers

              S. Excess Feed Cost: associated with market price support on quantities domestically produced and used on-farm as feed as calculated in Annex Tables IV.2.

V.2 Percentage CSE [(V.1) / ((II) - (R)) x 100]

V.3 Consumer NAC [(1 / (100 - (V.2)) x 100]

VI. Total Support Estimate [(III.1) + (IV) + (R)] and [(T) + (U) - (V)]

T. Transfers from consumers [(P)+(Q)]

U. Transfers from taxpayers [(III.1)-(P)+(IV)+(R)]

V. Budget revenues (Q)

Source:

Ministry of Agriculture