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Contact person: Dimitris Diakosavvasl |
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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, 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, sunflower, sugar, milk, beef and veal, pig meat, sheep meat, poultry meat, eggs and potatoes. 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, pig meat, poultry meat, sheep meat, wool, and eggs), provided that the value of production of that commodity exceeds 1% 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].
All
data entering in the PSE/CSE/TSE calculation are provided on a calendar year
basis.
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
Deficiency payments: Payments per tonne of
marketed output of specific livestock products covering the difference between
the guide price and the price paid by processors. Farmers have to apply for the
payment with proof (by a selling contract) of the level of deliveries and the
price obtained.
Quality payments: Payments per tonne of
marketed output of a high quality product (beef, milk, pigmeat,
poultry). In 2001, quality payments were extended to some vegetable products:
onions, pepper, potatoes for human consumption, tomatoes for industrial
processing and sweet maize. [5].
2.
Based on limited output
C.
Payments based on area planted/animal numbers
1.
Based on unlimited area or animal numbers
Payments to "small-scale" farms (from 1999): payments per
hectare of specific crops inversely proportional to the land use value to farms
operating on less than 300 hectares of farm land. It replaced the previous programme of Payments
to farms with low quality land [1]. Allocated to crop commodities according to their
share in the total value of production.
Payments to the purchase and breeding of
animals (from 1995). Allocated to livestock products
according to their share in the total value of production.
Disaster payments: Payments to compensate overall revenue losses from
disasters (floods), allocated to all commodities according to their share in
the total value of production.
2.
Based on limited area or animal numbers
Disaster payments (from 1997) Payments to compensate overall revenue losses from
disasters (floods) not covered by insurance [5], allocated to all commodities
according to their share in the total value of production. Payments for relief from
damage caused by wild animals: Allocated to crops according to their share
in total production.
D.
Payments based on historical entitlements
1.
Based on historical plantings/animal numbers or production
2. Based on historical
support programmes
E. Payments based on input
use
1. Based on use of variable
inputs
Interest concessions: Calculated as the difference between the average
commercial interest rate and the interest rate paid by farmers, multiplied by
the volume of outstanding loans for purchasing variable inputs [1],
including from 1998, operation loans to young farmers establishing their farm
[5]. Calculated on a fiscal year basis and allocated to all commodities according
to the share in the total value of production.
Fuel tax concession (from 1989): Refunds
of 70% of the fuel tax paid by farmers [4], allocated to all commodities
according to the share in the total value of production.
Support to agricultural employment (only in 1998):
Payments to producers per head and month of hired worker to cover part of
the labour costs [1], allocated to all commodities
according to the share in the total value of production.
Capital
aid: Budgetary expenditures for
financing farmers credit in case of bankruptcy [1],
allocated to all commodities according to the share in the total value of
production.
Insurance
payments (since 1997): Budgetary expenditures to farmers who participate in
agricultural insurance schemes to cover subsidised insurance premia [1], allocated to all commodities according to the
share in the total value of production.
2.
Based on use of on-farm services
Extension: Budgetary expenditures for financing the extension
service network [1], allocated to all commodities according to the share in the
total value of production.
3.
Based on use of fixed inputs
Capital grants:
Budgetary
expenditures to finance selected investment projects in farms under the
centrally planned economy (1986-1990); investments on farm and land improvement
(1986-1994), including irrigation investment; payments to farms for financing
part of investment programmes selected under tenders
(from 1995); payments for investments in machinery, drainage and irrigation
provided to projects selected under tenders [1]; and payments from the Agricultural Development Fund to finance new
farm investments in small and medium individual farms [2]. Allocated
to all commodities according to their share in the total value of production.
Support for family farms (from 2002). These farms are qualify for extra area
payments (HUF 24 000 for farms from 1‑10 hectares and
HUF 16 000 for farms from 10‑300 hectares). For purchase
of machinery, construction works, and establishing plantation investments, they can receive an additional 10% aid,
and the credit guarantees and grants have further preferential arrangements.
Loan defaults: Budgetary expenditures covering loan defaults
guaranteed by the government ("capital
grants for securities and agricultural
securities" from 1997) [5], allocated to all commodities according to
their share in the total value of production.
Interest concessions: Payments calculated as the difference between the
average commercial interest rate and the interest rate paid by farmers,
multiplied by the volume of outstanding loans for investment including: loans financing investments provided
as a partial compensation for abolished investment grants used in the previous
years (1989-1991); interest rate subsidies introduced in 1992 to compensate the
"high" nominal interest rates in the first years of the reforms;
loans financing investments of restructured (or restructuring) farms under the
"Reorganisation programme"
(from 1995) [1]; and Non-repaid interests
write-offs (1997, 1998) on
outstanding debts to repayable loans extended from the state budget [5]
Allocated to all commodities according to their share in the total value of
production. ["Returning
of interests on agricultural investments".
Land Conservation Fund expenditures financing the Land Offices activities
in setting and updating agricultural land registration (database) in rural
cadastres, and budget expenditures for construction of field roads [1]. 50% in
this category allocated to crops and 50% in E3. Land rent payment (from 1998): "Support for land rent" [5],
allocated to crop commodities accounting to their share in the total value of
crop production.
Investment related payments for
financing new plantations of vineyards and orchards [4], soil
amelioration and establishing
irrigation systems.
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
Payments to farms converting to organic farming; payments for environment protection; and Agricultural Environmental Programme (from 2002). Allocated to crop commodities
accounting to their share in the total value of production.
Agricultural
tourism. 50% is
allocated in this category and 50% in General services (agricultural schools).
G.
Payments based on overall farming income
1.
Based on farm income level
Supplementary payments (1986-1990): Payments to farms to compensate the overall revenue
loss associated with the increase in inputs prices not reflected in the output
prices fixed by the state [1]. Allocated to all commodities
according to the share in the total value of production.
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)) x100]
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: Budget
expenditure provided through the Ministry of Agriculture to research
institutions including the development and maintenance of plants and animal
genetic fund. From 1999 the support to the agricultural statistical system is
also included [1].
J.
Agricultural schools: Budget
expenditures to finance agricultural vocational schools (secondary schools)
[1].
K.
Inspection services: Budgetary
payments to finance inspection services provided by several public institutions
[1].
L.
Infrastructure: Land Conservation Fund expenditures financing the Land Offices activities
in setting and updating agricultural land registration (database) in rural cadastres,
and budget expenditures for construction of field roads [1]. 50%
in this category and 50% in E3.
Agricultural informatics expenditures financing projects dealing with computers and
data collecting as well as consulting activities in the field of microcomputers
for farmers.
M.
Marketing and promotion: Budget
expenditure to support marketing producer's co-operatives [4] and participation
on international fairs and exhibitions and other forms of promotions [1].
N. Public stockholding
O. Miscellaneous: Assistance to socially disadvantaged agricultural
communities; regional development programmes; payments to non‑profit
organisations.
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: School milk programme
(1998-2000) and Government guarantee for food processing companies (199-2000).]
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:
[1]
Ministry of Agriculture and Rural Development
[2] Office for Agricultural Market Regulation
[3]
Agricultural Development Fund
[4]
Ministry of Finance
[5]
Research Institute of Agricultural Economics and Information (AKII)
Table 3. Producer
Support Estimate by commodity
Definitions and Sources: see Tables 1 and 2 above.