UNITED STATES: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Luis Portugal

Email: luis.portugal@oecd.org

Tel :

(33-1) 45 24 95 34

Fax :

(33-1) 44 30 61 02

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 Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, rice, sorghum, soybeans, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, wool, 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.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, and eggs); provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned.. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

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].

 

Conversion factors: The US data are supplied in imperial measurements  pounds (lbs), hundred weight (cwt), bushels (bu), etc. and are converted by the OECD Secretariat into their metric equivalents. The following conversion factors have been employed in the estimates of support to agriculture:

One hectare equals 2.4710 acres.

One pound is equal to 0.0004536 tonne.

One metric tonne is equal to:

45.9296 bu for barley

68.8944 bu for oats

36.7437 bu for wheat and soybeans

39.3679 bu for maize and sorghum

1.1023 short tons for raw sugar

22.046 cwt for rice

2204.6 lbs for milk

Eggs: divide 000 dozen by 1412.4 to convert it to 000 tonnes.

Raw sugar: multiply raw sugar by 0.935 to convert it to refined sugar.

 

Fiscal year: 1 October 1994-30 September 1995 is attributed to calendar year 1995.

Crop years: Vary according to commodities -- crop year ending 31st May for wheat, 31st July for rice, 31st August for maize and sorghum, and 30th September for soybeans -- but, for example 1994-95 crop year is attributed to calendar year 1994 for all crops.

Marketing years: Vary according to commodities, but for example 1994-95 marketing year is attributed to calendar year 1994 for grains and calendar year 1995 for poultry and eggs. For cattle, sheep, turkeys and dairy products marketing years are equal to calendar year.

 

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Cereals, oilseeds and rice: Total farm level production during the crop year under "Crops & Products -- Supply & Utilization" in the reference data source [1].

Sugar: Total farm level production during the calendar year under "US sugar supply and use" in the reference data source [2]. Total sugar cane and sugar beet production in raw sugar equivalent is multiplied by 0.935 to be expressed in refined sugar equivalent.

Milk: Total milk production during the calendar year under "US Milk Supply and Use" in the reference data source [1].

Meats: Total farm level production in carcass weight during the calendar year under "US Meat Supply and Use" in the reference data source [1].

Wool: Total scoured wool production during the calendar year corresponding to the sum of the data sets labelled "Shorn wool" and "Pulled wool" under "US wool supply and use" in the reference data source [3].

Eggs: Total production of eggs in the shell during the year ending 30th November under "US Egg Supply and Use" in the reference data source [1].

II. Producer price

Cereals, rice, oilseeds, pig meat, poultry meat, and sheep meat: Marketing year weighted average price received by farmers. For the most recent year of calculation, where a price-range in the data source is given, the mid-point value is used [1].

Sugar: Implicit production price for beet in refined equivalent, obtained by dividing the production value of sugar beet and sugar cane in raw equivalent by the production of sugar un-refined equivalent [2].

Milk: Average price of all milk delivered to dairies and dealers, not including any deductions under levies [1].

Beef and veal: Implicit production price derived by dividing the published value of production at farm gate prices [2] by the level of production.

Wool: Price of wool delivered to wool mills [1].

Eggs: Average wholesale price of cartooned grade A eggs, New York [1].

IV. Level of consumption

Cereals, rice and oilseeds: Total consumption during the crop year, including consumption on farms where grown. The level of consumption is the sum of the columns labelled "Other domestic use" and "Feed and residual" under "Crops & Products -- Supply & Utilization" in the reference data source [1].

Sugar: Total consumption of refined sugar during the calendar year, under "US total consumption of caloric sweeteners"-- "Sugar, refined basis" in the reference data source [2].

Milk: Total consumption of liquid milk and dairy products in milk equivalents during the calendar year. It corresponds to domestic disappearance and is the sum of data sets labelled "Human" and "feed to calves" under "Milk: Supply and utilisation of all dairy products" in the reference data source [5].

Beef and veal, pig meat, poultry meat and sheep meat: Total consumption, carcass weight, during the calendar year (year ending 30th November for pig meat), corresponding to data under "US Meat Supply and Use" in the reference data source [1].

Wool: Total consumption of scoured wool, measured at the mill, during the calendar year. It corresponds to the sum of the data sets labelled "Apparel wool" and "Carpet wool" in the reference data source [1].

Eggs: Total consumption of eggs in the shell during year ending 30th November corresponding to data set "US Egg Supply and Use" in the reference data source [1].

VII. Reference prices

Wheat, barley, rice, pig meat, poultry meat and eggs: Implicit price derived by subtracting the average unit value of export subsidy for the specific commodity (total value of export subsidies for the crop year divided by total exports of the specific commodity) from the producer price [6].

Sugar: Export price of raw sugar fob Caribbean price plus charges for transport and handling from Caribbean ports to New York [2].

Milk: Farm gate price of milk, calendar year, actual fat content (x%) in New Zealand, plus transport cost for butter and skimmed milk powder in milk equivalent (56kg and 82kg per tonne of milk, respectively) from New Zealand to the United States (Pnz) [7], adjusted to fat content (y%) in the United States [4], the reference price being (Pnz)*[ (x%)+(y%)] /2*(x%).

Beef and veal: Australian saleyard cow price, Queensland, minus by-product value, plus processing cost, plus transport cost. To calculate MPS, the reference price is compared to the US cow price (cutter cow, Sioux Falls live weight multiplied by 2.04 to converted to carcass equivalent) under "Selected price statistics for meat animals and meat" in the reference data source [8].

Sheep meat and wool: Implicit price derived by subtracting the tariff from the producer price [9].

X. Budgetary transfers

Price levies

Sugar: 60 per cent of total production fee paid by cane and beet growers to the CCC ( 40 per cent are paid by sugar processors and included in Table 1 under V.1.R tranfers to consummer from taxpayers.)[10].

Milk: Deductions imposed on the milk price in response to the level of CCC purchases [10].

Sources:

[1] USDA, Agricultural Outlook, various issues.

[2] USDA, Sugar and Sweetener Situation and Outlook Report, various issues.

[3] USDA, Cotton and Wool Situation and Outlook year book, August issue.

[4] USDA, Livestock, Dairy and Poultry Situation and Outlook, various issues.

[5] USDA, Dairy Situation and Outlook, Year-book.

[6] Foreign Agricultural Service, unpublished data on the Export Enhancement Program.

[7] Data provided by New Zealand authorities.

[8] Australian Meat and Livestock Corporation, Statistical review, various issues.

[9] USDA, Report on Agricultural Concessions in the Multilateral Trade Negotiations.

[10] Information directly provided by USDA.