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DEFINITIONS 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. "MPS commodities", which vary across
countries, are those for which market price support is explicitly calculated in
Table 2.
Market
Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2
are calculated for the following commodities: wheat, barley, oats, rice,
sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, eggs and cotton.
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].
Fiscal
year: for
example, 1 July 2005 - 30 June 2006 is attributed to calendar
year 2005.
Crop
and livestock years: Vary according to commodities, but for example 2005 – 2006
crop or livestock year is attributed to year 2005. Statistics on production,
consumption and prices of livestock products refer to the year beginning 1
July, for example: production of wheat in crop
year 2005-2006 is attributed to the calendar year 2005.
Statistics
on production, consumption and prices of crops refer, in the main, to crops
sown during the year beginning 1 April. Statistics on wheat, for example, refer
to grain sown during the period from April to September and harvested between
October and the following February -- i.e., the 2005-06 season (2005 for
PSE/CSE purposes) relates to the harvesting period October 2005 to February
2006. Crop years are defined as relating to a 12-month harvest period beginning
the first day of the following months: October for wheat, November for barley
and oats, March for sorghum and July for sugar.
In
the case of rice, the statistics relate to total national production, but the
crop years differ by State. That for
Table 1.
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 MPS 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) x100].
1. Of which MPS commodities:
Sum of the value of consumption (at farm gate prices) of the MPS commodities 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 MPS
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
2. Based on limited output
C. Payments based on area planted/animal numbers
1. Based on unlimited area or
animal numbers
2. Based on limited area or
animal numbers
D. Payments
based on historical entitlements
Dairy Structural Adjustment Programme: Dairy farmers eligible for DSAP
assistance receive a fixed quarterly payment over 8 years. The DSAP payments
are based on milk production in 1998-99, they are unaffected by current or
future milk production decisions and are subject to income tax. The payments
assist producers to adjust to the expected reduction in farm incomes resulting
from the deregulation of producer prices, taking into account variations
between states according to the size of the regulated milk price premium and
the shares of fresh and manufacturing milk. The programme
started in July 2000 and the total cost of the programme
is AUD 1.63 billion over 8 years.
1. Based on historical plantings/animal
numbers or production
2. Based on historical support programmes
Sustainability Grant: Commonwealth programmes
will provide a one-off Sustainability Grant of up to $146 million. This $146 million
Sustainability Grant has been determined on the basis of the share of revenues
received by growers and mills over the 2001, 2002, and 2003 crushing seasons.
E. Payments based on input use
1. Based on use of variable
inputs
Diesel fuel rebates: Secretariat
estimates derived from portfolio budget statements, which include rebate
figures for all primary production [1b]. Precise figures have been used
whenever available. From 1994 to 1998, fuel rebate for all primary production
includes fuel rebate for all agriculture commodities, fishing and forestry but
from 1999 to 2005, only fuel rebate for agriculture.
2. Based on the use of on-farm services
Training Services
Skills Enhancement (Rural
Adjustment Scheme): Budgetary expenditure for improving farmers’ farm
management skills and providing professional advice, either in isolation or as
part of an integrated package of measures to increase the productivity of farm
businesses. Replaced by FarmBis in
1998. [1a],[1b]. Farm Business Improvement
Program (FarmBis): Budgetary expenditure under
the Agriculture - Advancing Australia Scheme (AAA) to improve farmers’ business
management knowledge and experience through such activities as skills
development, farm business and financial planning/advice, farm performance
benchmarking, quality assurance, risk management, rural leadership development,
marketing and natural resource management. FarmBis
commenced in 1998 and replaced Skills Enhancement under the Rural Adjustment
Scheme. [1a, 1b]. Advanced Property Management Planning:
Budgetary expenditure under the Agriculture - Advancing Australia Scheme (AAA):
to assist farmers to attend advanced property management training courses and
to engage professional consultants in the field of advanced integrated farm
management planning, taking account of financial, natural resource and regional
planning. Part of Natural Heritage Trust. [1a], [1b].
State programmes: Budgetary
expenditure of State governments on extension and advisory services to
agricultural producers to enhance production practices, promote ecologically
sustainable development, etc. [For 1986 - 1995 data from [9a] and [9b]. From
1994/95 to 2005/06, OECD Secretariat estimates, based on the assumption that
State governments continue to spend 21 % of total agricultural expenditure on
extension and that the expenditures have evolved at the same rate as the
increase in the consumer price index [9b, 16-31].
Retraining: Commonwealth programmes from 2004 to 2005 provide up to $7 million (including
administration) for retraining support for harvesters and mill workers made
redundant through sugar policy reforms, as well as for growers who leave the
industry.
Crisis Counselling: Commonwealth programmes
from
2003 to 2005 provided additional funding of up to $5 million over four years
for crisis counseling services for families in the industry. The services are
being delivered through the established Commonwealth Financial Counselling and Family Relationships Services
programs. More than 9,000 people from the sugar industry will have access to
these financial counseling and family support services.
Commonwealth programmes [1b], [2] and
[3]: Net budgetary expenditure on Bovine Brucellosis and Tuberculosis
Eradication Campaign; National Weeds Strategy to control weeds of
national significance threatening the natural environment and agriculture and National
Feral Animal Control Strategy to reduce the damage caused to agriculture
and the environment by feral animals. Both are part of Natural Heritage Trust Programmes and allocated by share in GVP.
State programmes: Net
budgetary expenditure of State governments on disease and pest control. For 1986 - 1995, data from [9a] and [9b]. From 1992/93 to
2005/06, OECD Secretariat estimates based on the assumption that State
governments continue to spend 15 % of their total agricultural expenditure on
pest and disease control and that the expenditures have evolved at the same
rate as the increase in the consumer price index [9b, 16-31].
3. Based on use of fixed inputs
Commonwealth tax concessions: The value of
tax deductions on certain capital expenditures on conservation measures, as
allowed under sections 75B and 75D of the Australian Income Tax Assessment Act
(1936), is included in the PSE starting in 1991. For 1991
data from [12, p. 23]; and for subsequent years from 1996-97 [11] and [15].
The value to farmers of the tax deduction for conserving or conveying water is
included in the PSE starting in 1994.
Productivity Improvement: Budgetary
expenditure on investment aids under the Rural Adjustment Scheme through
interest rate subsidies up to a maximum value of 50 % of the total interest
payable on new or existing loans for up to 3 years. The total amount of
interest subsidy may not exceed AUD 100 000 per applicant in any 12 month
period, or a cumulative total of support of AUD 300 000 over the previous 5
years.
Young Farmers Scheme – subsidy: Interest rate subsidy to assist young farmers commence a
career in farming. [No data available] [1a].
F. Payments based on input constraints
1. Based on constraints on
variable 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
Income tax
averaging for primary producers. [2], [15]. Value
of the tax rebate calculated by the Industry Commission as the difference in
the agricultural sector's income tax liability with and without income
averaging [7], which does not represent all of the value of this concession
[10].
Income Equalisation
Deposits Scheme: Value of income tax concessions to primary producers under
the Income Equalisation Deposits Scheme, as estimated
by the Industry Commission [11] [15]. Replaced by Farm Management Deposit
Scheme in 1998[1a][15].
Farm Management Deposit Scheme: Budgetary
expenditure under the Agriculture - Advancing Australia -package (AAA) to
finance the commercially operated scheme: to enhance farmers' capacity to
manage the significant climatic and price risks in farming with improved
financial tools. Replaced the Income Equalisation
Deposit Scheme and Farm Management Bond Scheme in 1998[1a][15].
Farm Family Restart Scheme (FFRS): Agriculture -
Advancing Australia -package (AAA) for a short-term safety net providing a
flexible and tailored package of up to AUD 45 000 in welfare support. Payments
are granted to low income farmers and their families who are experiencing
financial hardship and who cannot borrow further against their assets. It can
also provide adjustment assistance for those farmers who have decided to leave
the industry [this part of the programme expenditure
is included under L. Infrastructure] [1a] [15].
Farm Household Support Scheme (FHS):
[Terminated in the 1996-97 budget.] To assist farmers unable to meet their
day-to-day living expenses and denied further commercial finance. The scheme
granted a low interest rate loan which could under certain circumstances be
converted to a grant. The scheme terminated in 1996-97 and approximately AUD 5
million in outstanding debts were converted to grants
and farmers who had repaid their debts were reimbursed [1a].
Drought Relief Payments Scheme: Payments to
farmers under the Farm Household Support Act 1992 were granted since 1994. The
payment, unlike other disaster payments, extended certain welfare benefits to
farm families in drought-stricken areas, mainly those involved in broadacre industries. [1b].
Exceptional Circumstances Provisions (Rural
Adjustment Scheme): For farmers whose farm business incomes have been adversely
affected by exceptional circumstances (such as extreme and prolonged drought). Includes interest subsidies. Has now been replaced by the
AAA-package[1a].
Exceptional Circumstances Relief
Payment
(ECRP): Budgetary expenditure under the Agriculture - Advancing Australia
-package (AAA) to assist farm families in exceptional circumstances areas to
meet basic living expenses by providing sufficient immediate cash. To ensure
the farm sector has access to an adequate welfare safety net by extending
welfare arrangements available to farmers in severe drought to other equally
exceptional circumstances. A farm in an Exceptional Circumstances declared area
may be eligible for business support in the form of up to 100 per cent interest
rate subsidies; ECRP an income support payment, subject to an income test and
off-farm assets test and if receiving ECRP farmer may also be eligible for
additional Family Payment for dependent children, a Health Care Card and
possible exemption from the assets test for Austudy.
Business support is accessed through the Rural Assistance Authority in States
[1a].
State programmes: Budgetary
expenditure of State governments on payments to farmers under disaster relief programmes. [For 1986 - 1995, data from
[9a] and [9b]. From 1994/95 to 2003/04, OECD Secretariat estimates,
based on the assumption that State governments continued to spend 6 per cent of
total state agricultural expenditure on disaster relief and that the
expenditures have evolved at the same rate as the increase in the consumer
price index. [9b, 16-31].
Income Support (including business
planning for income support recipients): Commonwealth programmes from 1 March 2005 provide up to 12 months
further Income Support payments to eligible growers and harvesters, to help
farming families most in need. Payments are made fortnightly, and are
equivalent to the applicable rate of Newstart
Allowance. All eligible customers must undertake business planning activities
within six months of being granted Income Support. Up to $21 million (including
Centrelink administration) has been allocated for
Income Support.
2. Based on established minimum
income
H. Miscellaneous payments
1. National payments
2. Sub-national
payments
III.2 Percentage
PSE [(III.1) / ((I) + (Sum of B to H)) x 100]
III.3 Producer
NPC: For all agricultural commodities the Producer NPC is estimated as a
weighted average of the producer NPC calculated for the individual MPS
commodities and shown in Table 2. For each commodity Producer NPC =
[domestic price received by producers (at the farm gate) + unit payments based
on output] / border price (also at the farm gate).
III.4 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
Commonwealth programmes: Net
budgetary expenditure for research and product development, improvement of
production efficiency and optimal use of the natural resource base, including
grants from the Department of Agriculture, Fisheries and Forestry to industry
trust funds([1b], [2] and [3]) and part of the
expenditure by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in the grains industry. Commonwealth
budgetary outlays, estimates are derived partly from the Science and Technology
Budget Statement [2], [3], [15].
State programmes: Net budgetary expenditure of State governments for
research and product development, improvement of production efficiency and
optimal use of the natural resource base. [For 1986 - 1995,
data from [9a] [9b]. From 1992/93 to 2005/06, OECD Secretariat
estimates, based on the assumption that State governments continue to spend 37
% of total state agricultural expenditure on research and that the expenditures
have evolved at the same rate as the increase in the consumer price index. [9b,
16-31]].
J. Agricultural schools
K.
Inspection services
Commonwealth programmes: Net
budgetary payments for inspection services, [1b], [2] and [3], in particular
for export inspection related to meat inspection. [Since 1993 data reflect the
value of the 'meat inspection subsidy" to the AQIS [1a] [2] [15].
State programmes: Net budgetary payments by State governments for
inspection services. 1986 - 1995: figures based on IAC reports [9a] and [9b].
From 1992/93 to 2005/06: OECD Secretariat estimates, based on the assumption
that State governments continue to spend 5 % of agricultural expenditure on
inspection and that the expenditures have evolved at the same rate as the
increase in the consumer price index. [9b, 16-31].
L. Infrastructure
Commonwealth programmes
Murray-Darling Basin 2001
Program: Budgetary expenditure under
the national Heritage Trust for the rehabilitation of the Murray-Darling Basin,
with a view to achieving a sustainable development of the Basin, by: reducing
salt and nutrient levels in the river system; developing integrated catchment plans for all Murray-Darling catchment
areas and commence major on-ground works to address land and water degradation;
restoring riparian land systems, wetlands and floodplains; improving the health
of key river systems; and encouraging ecological and sustainable land use by
reducing salinity and waterlogging in irrigated areas
[1a].
National Landcare Program:
Budgetary expenditure under the Natural Heritage Trust to support actions by
communities to manage natural resources (land, water, vegetation and biological
diversity) sustainably, in partnership with
government [1a].
Re-establishment Scheme: Budgetary expenditure under the Rural Adjustment
Scheme for structural adjustment assistance through producer retirement programme: grants or loans provided to farmers (in
financial difficulty and without prospects for long-term profitability) to
leave the farming sector. Replaced by the Farm Family Restart
Scheme [1a].
Farm Family Restart
Scheme: Budgetary expenditure under Agriculture - Advancing
Australia -package (AAA), for structural adjustment assistance through producer
retirement programme, grants (up to AUD 45 000) to
farmers in financial difficulty, and who cannot borrow further against their
assets, to leave the farming sector before their assets are completely
depleted. Farmers can also be eligible for up to AUD 3 000 to remunerate
professional advice, to explore options for the future including a maximum of
AUD 450 in associated costs, such as travel and childcare). [1a].
Retirement Assistance for
Farmers Scheme: Budgetary
expenditure under Agriculture - Advancing Australia -package (AAA),
to provide incentives for farm adjustment by encouraging farmers at retirement
age to transfer ownership of the business to a younger generation of their
family [1a].
Rural Strategic Planning
Initiative: Budgetary expenditure
under the Agriculture - Advancing Australia -package (AAA) to assist communities
develops strategic regional plans [1a].
Rural Communities Programme:
Budgetary expenditure under the Agriculture - Advancing Australia -package
(AAA) to improve the access of rural communities to information and services,
through community planning, financial counselling,
information provision, information services technology and community
development projects [1a].
Rural Partnership Programme:
Budgetary expenditure to finance projects of regional producer communities for
structural adjustment [1a].
Regional and Community
Projects: The $75 million Regional
and Community Projects is an Australian Government initiative to help the sugar
industry and/or its dependant communities by providing funding for a range of
regionally based targeted projects that is intended to assist the medium and
longer term sustainability of the sugar regions.
State programmes
Rural Adjustment: Budgetary expenditure of State governments on rural
adjustment: [For 1986 - 1995, data from [9a] [9b]. From 1993/94 to 2005/06, OECD
Secretariat estimates, based on the assumption that State governments continue
to spend 4 % of agricultural expenditure on rural adjustment and that the
expenditures have evolved at the same rate as the increase in the consumer
price index. [9b, 16-31]].
Land and water
conservation: Budgetary expenditure
of State governments on land and water conservation. [For
1986 - 1995, data from [9a] [9b]. From 1994/95 to 2005/06, OECD
Secretariat estimates, based on the assumption that State governments continue
to spend 11 % of agricultural expenditure on conservation and that the
expenditures have evolved at the same rate as the increase in the consumer
price index. [9b, 16-31]].
M.
Marketing and promotion
Commonwealth programmes:
Budgetary expenditure on export assistance (EMDGs and
IAMP) and the annual grant to the Australian Wool Realisation
Corporation [1a], [1b] and [2].
State programmes: Budgetary expenditure of State governments on export
assistance. [For 1986 - 1995, data from [9a] and [9b].
From 1991/92 to 2005/06, OECD Secretariat estimates, based on the assumption
that State governments continue to spend 1 % of agricultural expenditure on
marketing and that the expenditures have evolved at the same rate as the
increase in the consumer price index. [9b, 16-31]].
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 cost. [Sum
of P to S; when negative, the amounts represent an implicit tax on consumers].
P. Transfers to
producers from consumers: Associated with market price
support on all domestically produced commodities, estimated by increasing the
transfers calculated for the MPS commodities according to their share in the
total value of production [(P.1) / (I.1) x 100].
1. Of which MPS commodities: Sum of the values of transfers from consumers to producers associated with market price support for the MPS commodities as calculated in Table 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 MPS
commodities according to their share in the total value of production
[(Q.1) / (I.1) x 100].
1. Of which MPS commodities: Sum of the transfers to the budget associated with market price support on the quantities imported of the MPS commodities as calculated in Table 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 Table 2.
V.2 Percentage
CSE [(V.1) / ((II) - (R)) x 100]
V.3 Consumer NPC: For all agricultural commodities the Consumer NPC
is estimated as a weighted average of the consumer NPC calculated for the
individual MPS commodities and shown in Table 2. For each commodity
Consumer NPC = domestic price paid by consumers (at the farm gate)/ border
price (also at the farm gate).
V.4 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)]
Sources :
[1a] Information provided
by the Australian Government Department of Agriculture, fisheries and forestry
(DAFF- previously AFFA or DPIE).
[1b] DPIE, "Portfolio
Budget Statements", various years.
[2] Industry Commission, "Annual
Report" (
[3] Ministry of Finance, "Budget
Statements -- Budget Paper No. 1" (
[4] Industry Commission, Annual Report
1990-91, (
[5] Industries Assistance Commission,
"Assistance to Australian Agriculture" (Canberra: AGPS, 1982).
[7] DPIE, "Assistance to farmers in
1991-92 through the rural adjustment scheme", mimeograph, Canberra, 29
October 1991; DPIE, "Rural Adjustment Scheme, 1990-91" (Canberra:
AGPS, 1996); Parliament of the Commonwealth of Australia, "Rural
Adjustment, Rural Debt and Rural Reconstruction" (Canberra: Senate
Printing Unit, 1994); Rural Adjustment Scheme Advisory Council, "Annual
Report 1996-97"
[8] DPIE, "National Landcare
Program -- Report on the Operations of the Land and Water Elements,
1993-94" (Canberra: AGPS, 1996); National Landcare
Facilitator Project, "Annual Report: The State of the Community Landcare Movement in
[9a] Industries Assistance Commission,
"State Government Assistance to Agriculture" (
[9b] Industry Commission, "State,
Territory and Local Government Assistance to Industry", Report no. 55
(Canberra: AGPS, 1996).
[10] OECD, "National Policies and
Agricultural Trade -- Country Study:
[11] Industry Commission, "Annual
Report", various years (
[12] OECD, "Tax Expenditures -- Recent
Experiences", OECD Publications,
[13] ABARE, "CSB 1991", Table 87
(AWB prices). Also reported in ABARE, "ACS 1997" --
Table, "Australian wheat prices".
[14] OECD Secretariat, results of the MTM
(Ministerial Trade Mandate Model).
[15] Productivity Commission, "Trade
and Assistance Review 1997-1998" (
[16] New South Wales State Budget, various
years.
[17] Queensland State Budget
, various years.
[18] South Australia State Budget , various years.
[19] Tasmania State Budget, various years.
[20] Victoria State Budget, various years.
[21] Western Australia State Budget, various
years.
[22]
[23] Australian Capital Territory Budget,
various years.
[24] Information provided by Primary
Industries and Resources
[25] Information provided by Agriculture
[26] Information provided by
[27] Information provided by
[28] Information provided by
[29] Information provided by
[30] Information provided by Primary
Industries and Fisheries
[31] Information provided by Victorian Dept
of Natural Resources and the Environment