CANADA: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Roger Martini

Email: roger.martini@oecd.org

Tel :

(33-1) 45 24  17 40

Fax :

(33-1) 45 24 18 90

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 numerated 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.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, oats, rice, sorghum, soybeans, rapeseed, milk, beef and veal, pigmeat, poultry 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/dataoecd/36/47/1937457.pdf].

Table 2. Market Price Support and Consumer Support Estimates by Commodity

Definitions:

I. Level of production

Wheat: Total farm production, including durum wheat [1].

Barley, maize, soya beans: Total farm production [1].

Rapeseed: Total canola production [1].

Milk: Deliveries of fluid milk, industrial milk and cream, plus on-farm food and animal feed uses (1.03 kg = 1 litre) [2].

Beef and Veal: Estimated farm output of cattle multiplied by cold dressed weight of cattle plus farm output of calves multiplied by the cold dressed weight of calves [3].

Pigmeat: Hog marketings (domestic slaughter + exports of live hogs - imports of live hogs) multiplied by the average cold trimmed weight [3].

Poultrymeat: Chicken and turkey production [4].

Eggs: Egg Production [4].

II. Producer price

Wheat: Final Realised Price for Western Canada Red Spring No. 1 minus freight and elevation charges [5].

Barley: Final Realised Price for Western Canada Barley No. 1 (CWB1) minus freight and elevation charges [6].

Maize: Producer Price Chatham, Corn 2CE [6].

Soybeans: Soybeans Cash Price for No. 2 Canada [6].

Rapeseed: Average of producer prices in Alberta, Saskatchewan and Manitoba [7].

Milk: Unit farm cash receipts plus unit levies on deliveries, adjusted for milk fed to animals on farms valued at the reference price [8].

Beef and veal, pigmeat: Farm cash receipts minus interprovincial sales, divided by the level of production [8, 9].

Poultrymeat, eggs: Farm cash receipts divided by the level of production [8].

IV. Level of consumption

Wheat, barley, maize: Total domestic use [10].

Soybeans, rapeseed: Total domestic disappearance [10].

Milk: Estimated by converting sales, production or disappearance of individual dairy products to their whole milk equivalent, on a butterfat equivalent basis [11].

Beef and veal, pigmeat and eggs: Total domestic disappearance [12].

Poultrymeat: Consumption of chicken and turkey [12].

VII. Reference prices

Wheat: Implicit price calculated by subtracting unit market price support (MPS) from the producer price, where the MPS elements are the following:.

-- Transport subsidies (crow rate & others): (Total Average Freight Rate - Shipper Share) x Western Production. A Special Assistance Program is added in 1987 and 1988 [1, 13].

-- Two Price Wheat: (Maximum Domestic Price - Final Realised Price for CWRS #1) x Food Consumption of all Wheat [5, 6].

-- Corn Competitive: ((Corn Formula Price - (Canadian Western Feed + CWRS3)/2)+4) x Wheat Feed Sales [5].

-- Pool Deficits: (Pool Deficit/Quantity acquired by CWB) x Western Production [1, 5]

Barley: Implicit price calculated by subtracting unit market price support (MPS) from the producer price, where the MPS elements are the following:.

-- Transport subsidy (crow rate): (Total Average Freight Rate - Shipper Share) x Western Production. Special Assistance Program is added in 1987 and 1988. [1, 13].

-- Corn Competitive: (Corn Formula Price - CWB1 + 4) x Barley Feed Sales [5].

-- Pool Deficits: (Pool Deficit/Quantity acquired by CWB) x Western Production [1, 5].

Maize: Implicit price calculated by subtracting the unit tariff from the producer price [14].

Soybeans, rapeseed: Implicit price calculated by subtracting unit market price support (MPS) from the producer price, where the MPS is the transport subsidy (crow rate): (Total Average Freight Rate - Shipper Share) x Western Production (Special Assistance Program is added in 1987 and 1988 [1, 13].

Milk: Farm-gate price of milk, calendar year, actual fat content (x%) in New Zealand plus transport cost for butter and slimmed milk powder in milk equivalent (56 kg and 82 kg per tonne of milk, respectively) from New Zealand to Canada (Pnz), adjusted to Canadian actual fat content (y%), the reference price being: (Pnz)*[ (x%)+(y%)] /2*(x%) [15]. To calculate MPS, the reference price is compared to the "unit value of delivered milk" in Canada calculated as farm cash receipts plus levies divided by deliveries to dairies [2,8].

Beef and veal: Australian manufacturing cow price, Queensland, plus transport costs, plus processing costs, less by-product deduction [16]. To calculate MPS, the reference price is compared to the Canadian cow price [17].

Chickens: The United States producer price, eviscerated, less EEP correction (market price support/production) plus transport costs to Canada [18]. To calculate MPS, the reference price is compared to the Canadian price of live chicken converted into eviscerated equivalent using a coefficient of 1.4 [20].

Turkeys: The United States producer price, eviscerated, plus transport costs to Canada [18]. To calculate MPS, the reference price is compared to the Canadian price of live turkey converted into eviscerated equivalent using a coefficient of 1.2 [20].

Eggs: The United States producer price less EEP correction (MPS/production) plus transport cost to Canada [19]. To calculate MPS, the reference price is compared to the Canadian producer price of grade-A large eggs [20], net of the industrial egg levy [21].

Sources

[1] Statistics Canada, Field Crops Reporting Series, Cat. 22-002.

[2] Deliveries: Statistics Canada, The Dairy Review Monthly, Cat. 23-001. On-farm and animal feed use: Agriculture and Agri-Food Canada, Policy Branch.

[3] Statistics Canada, Livestock and Animal Products Statistics, Cat. 23-203.

[4] Statistics Canada, Production of Poultry and Eggs, Cat. 23-202.

[5] Canadian Wheat Board, Annual Reports.

[6] Statistics Canada, Cereal and Oilseeds Review, Cat. 22-007.

[7] Canada Grain Council, Statistical Handbook.

[8] Statistics Canada, Agricultural Economic Statistics, Cat. 21-603.

[9] Interprovincial sales: Statistics Canada, unpublished data.

[10] Statistics Canada, Cereal and Oilseeds Review, Cat. 22-007.

[11] Agriculture and Agri-Food Canada, Policy Branch.

[12] Statistics Canada, Apparent Per Capita Food Consumption in Canada, Cat., 32-230 and 32-229.

[13] National Transportation Agency, Annual rate scale orders.

[14] Customs Tariffs of Canada.

[15] New Zealand Ministry of Agriculture.

[16] Australian Meat and Livestock Corporation, Statistical Review, various issues.

[17] Canadian Cow Price: Canadian Cattlemen’s Federation; Exchange Rate: OECD, Main Economic Indicator, Paris.

[18] USDA, Agricultural Outlook, Table 5, various issues.

[19] US PSE Table for eggs.

[20] Agriculture and Agri-Food Canada. Poultry Market Review.

[21] National Farm Products Council.