SWITZERLAND : ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Dimitris Diakosavvas

Email: Dimitris.Diakosavvas@oecd.org

Tel :

(33-1) 45 24 95 33

Fax :

(33-1) 44 30 61 02

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 the official French name in 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, oats, rapeseed, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat, 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.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for the 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% 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].

TABLE 1. SWITZERLAND : 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 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

Milk Price Supplement for Cheese Production (supplément de prix pour le lait transformé en fromage): payment per tonne of milk (within the production quota) granted to farmers delivering milk to cheese producers (the part paid to cheese producers up to 1998 is included under CSE). Calculated on a fiscal year basis and allocated to milk.

Payments for Non-Silage Feeding of Cows (indemnité de non-ensilage): payment per tonne of milk to producers whose milk is produced (within the production quota) without silage fodder and used to produce some types of cheese (Emmental, Gruyère, Sbrinz, Appenzel and Tilsit). Calculated on a fiscal year basis and allocated to milk.

Slaughter Cattle Payments (contributions pour l’élimination du bétail): payment per head of animal (in terms of beef live weight) to producers in mountainous areas whose meat is sold on controlled markets during the elimination campaigns. The rate of payment is subject to a ceiling and the rate varies according to the quality and age of the animal. The number of animals that can benefit per farm is limited. The programme was discontinued in 1995. Calculated on a fiscal year basis and allocated to beef and veal.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Payments to Small and Medium-Scale Livestock Producers (contributions aux petites et moyennes exploitations détentrices d’animaux): payment per farm to all livestock producers in small and medium-sized farms. Payments are granted to farms from 3 to 49 hectares with 5 to 59 livestock units, and subject to income limits. The maximum rate of payment is granted to farms between 7 and 40 hectares. A degressive rate is applied under and above this range within the required limits. The payment was discontinued in 1992. Calculated on a fiscal year basis and allocated to livestock according to their relative values of production.

Payments for Crop Cultivation (contributions à la culture des champs)*: payment per hectare of crop land with a minimum plot size of 0.2 hectare. The rate of payment varies according to the crop species, and decreases with the number of hectares planted. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

Acreage Base Premiums for Coarse Grains (primes de culture des céréales fourragères): payment per hectare of coarse grains cultivated on farms with more than 3 hectares. The rate of payment varies according to the grain species, and decreases with the number of hectares planted. The programme was integrated into Payments for Crop Cultivation in 1999. Calculated on a fiscal year basis and allocated to coarse grains. [allocation to individual crops should be done according to shares in acreage].

Acreage Supplementary Payments for Coarse Grains (contributions pour la production de céréales fourragères dans les régions où les conditions de production sont difficiles): payment per hectare of coarse grains cultivated in areas where production conditions are difficult. The rate of payment increases with the altitude of farming location. The programme was in operation during 1992-94. Calculated on a fiscal year basis and allocated to coarse grains. [allocation to individual crops should be done according to shares in acreage].

Acreage Premiums for Bread Cereals (subsides à la production de céréales panifiables dans les régions où les conditions de production sont difficiles): payment per hectare of bread cereals cultivated in areas where production conditions are difficult. The rate of payment increases with the altitude of farming location. The programme was discontinued in 1991. Calculated on a fiscal year basis and allocated to wheat.

Acreage Premiums for Potatoes (contributions pour la production de pommes de terre en régions de montagne et sur les terrains en forte pente): payment per hectare of potatoes cultivated in mountainous areas and on steep slopes. The rate of payment increases with the altitude of farming location. The programme was discontinued in 1991. Calculated on a fiscal year basis and allocated to potatoes (i.e. "other commodities").

Payments for Extensive Cereal and Rapeseed Farming (contributions aux méthodes de production extensive de céréales panifiables, céréales fourragères et colza): payment per hectare for farms on which the whole production of bread cereal, fodder cereal or rapeseed is undertaken without growth regulators, fungicides and insecticides. The programme was in operation during 1992-98. Calculated on a fiscal year basis and allocated to wheat, maize, other grains, and oilseeds according to their respective shares of payments.

Payments for Integrated Production of Crops (production intégrée): payment per hectare of crops cultivated on farms with more than 3 hectares (on which at least 5% of the land is cultivated as extensive meadows or floral fallow) according to specific integrated production standards (related to biodiversity, soil conservation, manuring, cropping plan, cultivar selection, integrated pest management, and the holding of livestock). The rate of payment decreases by half above 50 hectares of cultivated land. A supplement is granted if the mode of production applies to the whole farm. The programme was in operation during 1992-98. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Payments for Organic Farming of Crops* (culture biologique): payment per hectare of special crops, open arable land excluding special crops, and green areas and litter meadows according to specific organic farming regulation requirements for the entire farm (including production, transformation and marketing of organic produce). The programme was launched in 1992. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Payments for the Controlled Holding of Animals in Open Air (détention contrôlée des animaux en plein air): payment per head of animal raised in the open air according to specific standards (with a minimum of 5 livestock units). The rate of payment varies according to the animal species (high for poultry, medium for pigs, low for cattle). The programme was integrated into Payments for Regularly Keeping Animals Outdoors in 1999. Calculated on a fiscal year basis and allocated to livestock according to their relative values of production.

Payments for Animal Housing Systems* (systèmes de stabulation particulièrement respectueux des animaux): payment per head of animal raised in stabling systems according to specific standards (with a minimum of 5 livestock units). The rate of payment varies according to the animal species (high for poultry, medium for pigs, lower for cattle). The programme was launched in 1992. Calculated on a fiscal year basis and allocated to livestock according to their relative values of production.

Payments for Regularly Keeping Animals Outdoors* (sorties régulière en plein air d’animaux de rente): payment per head of animal kept outdoors for a certain number of days every week/month. The rate of payment varies according to the animal species (higher for poultry). The programme was launched in 1999. Calculated on a fiscal year basis and allocated to livestock according to their relative values of production.

Payments for Summer Pasturing* (contributions d’estivage): payment per head of animal on summer pasturing for at least 30 days a year. The rate of payment varies according to the species. Pasture must be managed sustainably, with specific requirements on livestock density, manuring, fodder management, animal welfare and water protection. Calculated on a fiscal year basis and allocated to milk, beef, sheepmeat, and wool according to their relative values of production.

Payments for the Holding of Cows whose Milk is not Marketed (contributions aux détenteurs de vaches dont le lait n’est pas commercialisé): payment per cow whose milk is not marketed. The rate of payment increases with the altitude of the farming location, but decreases with the number of cows. It is also reduced if on-farm fodder production is below national standards or if part of the milk production is delivered. Producers must comply with legislation on animal welfare and water protection. The programme was integrated into Payment for the Holding of Roughage Eating Farm Animals in 1999. Calculated on a fiscal year basis and allocated to milk.

Payments for Extensive Cereal and Rapeseed Cultivation* (production extensive de céréales et colza): payment per hectare for farms on which the whole production of bread cereal, fodder cereal or rapeseed is undertaken without growth regulators, fungicides and insecticides. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

Payments for Oilseeds Cultivation* (Contribution à la production d'oléagineux - colza, soja, tournesol, chanvre): payment per hectare of oilseeds. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to oilseeds according to their relative values of production. [allocation to individual oilseed should be done according to shares in acreage].

2. Based on limited area or animal numbers

Payments for the Production of Renewable Raw Materials (contributions à la production de matières premières renouvelables): payment per hectare cultivated with energy and fibre crops. Payment is limited to 10 hectares, and 30% of the cultivated area on farms with more than 3 hectares in the lowland. The rate of payment varies according to crop species (higher for rapeseed and sunflower, and lower for fibre species, such as kenaf, Chinese reed and hemp). The programme was launched in 1992 and integrated into Payments for Crop Cultivation in 1999. Calculated on a fiscal year basis and allocated to "other commodities".

Payment for the Holding of Roughage Eating Farm Animals* (contribution pour la garde d’animaux consomnant des fourrages grossiers): payment per animal (cow, horse, sheep, goat, etc.). The rate of payment varies between species, and is increased if animals are held for summer pasturing, and reduced if milk is marketed. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to milk, beef, sheepmeat, and wool according to their relative values of production.

Payments for the Holding of Livestock in Mountainous Areas (contributions aux frais de détenteur de bétail en région de montagne): payment per head of animal raised in mountainous areas in farm holding between 1 and 15 livestock units. The rate of payment increases with the altitude of the farming location, but decreases if on-farm fodder production is below national standards, and is degressive if annual farm income exceeds SF 80 000 (with an upper limit of SF 100 000) or farm assets exceed SF 700 000 (with an upper limit of SF 800 000). The programme was discontinued in 1998. Calculated on a fiscal year basis and allocated to livestock.

Payments for the Holding of Livestock under Difficult Conditions* (contributions pour la garde d’animaux dans des conditions difficiles): payment per head of animal raised in mountainous areas in farm holding between 1 and 15 livestock units. The rate of payment increases with the altitude of the farming location. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to milk, beef, sheepmeat, and wool according to their relative values of production.

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production

2. Based on historical support programmes

Complementary Direct Payments: Base Farm Payment (paiements directs complémentaire: contribution de base (ferme)): payment per farm larger than 3 hectares, independent of commodities produced as long as at least 5% of the land is cultivated with extensive meadows, floral fallow or renewable raw materials (7% in the lowland). The rate of payment is decreased if farm income exceeds SF 105 000. The programme was in operation during 1993-98. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Complementary Direct Payments: Base Area Payment (paiements directs complémentaire: contribution de base (areale)): payment per hectare of arable land on farms larger than 3 hectares on which at least 5% of the land is cultivated with extensive meadows, floral fallow or renewable raw materials (7% in the lowland). The programme was in operation during 1993-98. Calculated on a fiscal year basis and allocated to crops according to their relative values of production.

Complementary Direct Payments: Supplementary Payments (paiements directs complémentaire: contribution complémentaire): payments to all farms larger than 3 hectares on which at least 5% of the land is cultivated with extensive meadows, floral fallow or renewable raw materials (7% in the lowland) and that hold at least 5 livestock units. The programme was in operation during 1993-98. Calculated on a fiscal year basis and allocated to all livestock commodities according to their relative values of production.

Area payment* (contribution à la surface): payment per hectare of agricultural land independent of any requirements to produce particular crops. The payment is subject to the income and asset ceilings for direct payments. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

E. Payments based on input use

1. Based on use of variable inputs

Energy Payments: value of tax exemption on gasoline and diesel fuel. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Seed Payments (subvention production semence): budget expenditure to reduce the price of seeds to producers. Calculated on a fiscal year basis and allocated to crops.

Maize Seed Payments (contribution à la production de maïs de semence): budget expenditure to reduce the price of maize seeds to producers. Calculated on a fiscal year basis and allocated to maize.

Complementary Direct Payments: Payment for Meadows for Forage Production (paiements directs complémentaire: contribution à la surface herbagère): payment per hectare of pasture land on farms larger than 3 hectares on which at least 5% of the land is cultivated with extensive meadows, floral fallow or renewable raw materials (7% in the lowland). The programme was in operation during 1993-98. Calculated on a fiscal year basis and allocated to milk, beef and sheepmeat according to their relative values of production.

Payments for Less Intensively Used Meadows for Forage Production* (prairies peu intensive): payment per hectare of meadow cultivated without plant protection products and fertilised exclusively with animal manure (low-intensity meadows), and for which the only authorised harvesting method is mowing. The rate of payment decreases with the altitude. The programme was launched in 1993. Calculated on a fiscal year basis and allocated to milk, beef, and sheepmeat according to their relative values of production.

Payments for Use of Low Quality Potatoes as Animal Feed* (utilisation de pommes de terre de moindre qualité): payment per hectare of potatoes that are cultivated to provide animal feed. Calculated on a fiscal year basis and allocated to potatoes ("other commodities").

Feed grain price reduction based on import tariff revenues (réduction de prix sur les denrées fourragères): expenditure (based on revenues from import tariffs) to reduce the price of feed grains. Calculated on a fiscal year basis and allocated to livestock.

2. Based on use of on-farm services

Extension Services (vulgarisation): budget expenditure on extension services. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production [half of total expenditure, other half under J. Agricultural Schools].

Pest Control (Lutte contre les maladies): budget expenditure on plant protection. Calculated on a fiscal year basis and allocated to all crop products according to their relative values of production.

Disease Control (Lutte contre les épizooties): budget expenditure on animal health control. Calculated on a fiscal year basis and allocated to all livestock products according to their relative values of production.

Livestock Improvement (contribution à l’amélioration de l’exploitation et de l’hygiène du bétail): budget expenditure for improving the keeping and breeding of livestock. The programme was discontinued in 1992. Calculated on a fiscal year basis and allocated to livestock according to their relative values of production.

3. Based on use of fixed inputs

Interest concessions (subsides aux crédits d’investissement): budgetary expenditure of the federal government on interest concessions. Calculated as the difference between the market interest rate and the rate actually paid by farmers multiplied by the volume of loans (investment credit) outstanding. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Investment aid for farm operations (aides aux exploitations paysannes): budgetary expenditure by the federal government and the cantons on subsidised investment credits. Calculated as the difference between the market interest rate and the rate actually paid by farmers multiplied by the volume of loans (investment credit) outstanding. Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Payments for Farming on Steep Slopes (contributions à l’exploitation des terrains en pente): payment per hectare of land on slopes with a gradient of more than 18% cultivated in a way to maintain soil productivity and not to be harmful to the environment. Payment rates differ with the slope gradient, and payments are limited to farms bigger than 0.5 hectare. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to all crops should be done according to their in acreage; vineyards should be excluded].

Payments for Wine Cultivation on Steep Slopes (contribution pour les surfaces viticoles en pente): payment per hectare of winery-land on slopes with a gradient of more than 30%. Payment rates differ with the slope gradient, and payments are limited to farms with more than 0.1 hectare of eligible land. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to wine (i.e. "other commodities").

F. Payments based on input constraints

1. Based on constraints on variable inputs

2. Based on constraints on fixed inputs

Payments for Green Fallow* (contributions à la jachère verte): payment per hectare of arable land withdrawn from production for one or two years, with a period of four years between two green fallows, and maintained with green cover on which weeding is carried out without agrochemicals, but which cannot be used for agricultural production or grazing. Payment is limited to 30 hectares on farms with more than 3 hectares in the lowland and the rate of payment is fixed. The programme was in operation during 1993-98. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

Payments for Reduction of the Livestock Herd (réduction du cheptel en surnombre): payment per head of cattle in excess of maximum ceiling. The programme was in operation during 1993-95. Calculated on a fiscal year basis and allocated to beef and veal.

Payments for Extensive Farming on Dryland and Litter Areas* (contributions à l’exploitation des terrains secs et de prés à litière): payment per hectare of land in disadvantaged areas, implemented by the cantons. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

3. Based on constraints on a set of inputs

Ecological Compensation (compensation écologique): budget expenditure on several programmes. Calculated on a fiscal year basis and allocated to crops according to their relative values of production.

Tall Fruit Tree Payments* (arbres fruitiers haute tige): payment per fruit tree above 1.2 to 1.6 m high (according to the tree species), not located in orchards. The payment is limited for up to 300 trees per farm (with a minimum of 20 trees) and the rate is fixed. The trees benefit landscape features and biodiversity, in particular for bird species. The programme was launched in 1993.

Payments for Extensive Meadows* (prairies extensives, prairies extensives sur terres assolées gelées): payment per hectare of meadow cultivated (including on land set aside) for at least 6 years without fertilisers and plant protection product. A supplement is granted for extensive meadows established on groundwater protection areas. Payment is limited to 50% of the cultivated area on farms above 3 hectares and the rate of payment decreases with the altitude. The programme was launched in 1993. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

Payments for Litter (surface à litière): payment per meadows that are used exclusively for litter production. The programme was launched in 1999.

Payments for Hedges and Rustic Groves (haies et bosquets champêtres): payment per area of hedge and rustic grove (including 3m-wide compulsory grass strips along them) cultivated without fertilisers and plant protection products. Payment is limited to 50% of the cultivated area on farms with more than 3 hectares and the rate of payment decreases with the altitude of the farming location. The programme was launched in 1993 and integrated into Payments for Extensive Meadows in 1999.

Payments for Floral Fallow* (jachère florale): payment per hectare of floral fallow cultivated with wild indigenous species without fertilisers and plant protection products and for which harvest is authorised once every two years and cannot be used for fodder (to protect nesting birds). Payment is limited to 50% of the cultivated area on farms with more than 3 hectares and the rate of payment is fixed. The programme was launched in 1993.

Payments for Rotation of Fallow Land* (jachère tournante): payment per hectare of fallow land that remains uncultivated or is planted with an approved mix of seeds. No fertilisers and plant protection products are allowed. Minimum plot size is 0.2 hectare. The programme was launched in 1999.

Extensive Area Strips* (bandes culturales extensives): payment per hectare of extensively farmed area strips in the low lands independent of the crops grown. Strips have to be 3 to 12 meters wide and have to go along the entire plot of main crops. No nitrogen fertilisers and insecticides are allowed. The programme was launched in 1999.

Payments for Ecological Compensation and Extensive Meadows (contributions à surface, compensations écologique et prairies extensive): payment per hectare of land that is cultivated in accordance with certain restrictions on agro-chemical input use and livestock densities. The programme was in operation in 1992. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

Payments for Measures to Protect Water Quality* (mesures relevant à la protection des eaux): payment for hectare of land, if certain restrictions on fertiliser and pesticide use and farming practices are respected. The scope and eligibility of payments in particular areas is determined in negotiations between farmer representatives, the cantons, and federal authorities. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to crops according to their relative values of production. [allocation to individual crops should be done according to shares in acreage].

G. Payments based on overall farming income

1. Based on farm income level

2. Based on established minimum income

H. Miscellaneous payments

1. National payments

2. Sub-national payments

Cantonal net budgetary expenditure (dépenses nettes des cantons en faveur de l’agriculture): half of the cantonal expenditure on agriculture (the other half is included under General Services miscellaneous payments). Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Communal net budgetary expenditure (dépenses nettes des communes en faveur de l’agriculture): half of the communal expenditure on agriculture (the other half is included under General Services miscellaneous payments). Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

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

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

Research Institutions (recherche): Net expenditure on agronomic research and research and development.

Cattle Breeding (encouragement à l’élevage du bétail): budget expenditure on genetic improvement and animal performance appraisal of cattle.

Horse Breeding (encouragement à l’élevage du cheval): budget expenditure on genetic improvement and animal performance appraisal of horses. The programme was discontinued in 1996.

J. Agricultural schools

Extension Services (vulgarisation): Budget expenditure on extention services and professional training [half of total expenditure, other half under E.2. Payments based on use of on-farm services].

Improvement of agricultural schooling facilities (Construction nouvelles et complémentaires destinées à l'enseignements agricoles): Budget expenditure on the construction and improvement of agricultural schools.

Agricultural schooling (Formation professionnelle agricole): Budget expenditure on instruction in agricultural schools.

K. Inspection services

Milk inspection services (Service d’inspection et de contrôle en matière d’économie laitière): Budget expenditure on milk inspection services.

Slaughterhouse inspection services (fonds viande, service d’inspection): Budget expenditure on slaughterhouse inspection services.

Vineyard inspection services (Contrôle de la vendage): Budget expenditure on vineyard inspection services.

L. Infrastructure

Cheese factory improvement (améliorations des structures des fromageries artisanales): Budget expenditure on cheese factory improvement.

Renewal of vineyards on slopes (Renouvellement de vindanges en pente): Budget expenditure for the renewal of vineyards on slopes.

Other rural infrastructure improvement (autres améliorations foncières et constructions rurales): Budget expenditure on rural infrastructure improvement.

M. Marketing and promotion

Promotion of cheese, wine, wine products, and other products abroad (Publicité pour les fromages, les vins, les produits viticoles, et autres produits à l'étranger): budget expenditure on the international promotion of agro-food products.

Liquidation of BUTYRA and the Swiss Cheese Union (dépense pour la liquidation de BUTYRA et d’Union Suisse de Fromage). budget expenditure for the dissolution of the state-sanctioned trading enterprises BUTYRA and Swiss Cheese Union in 1999.

N. Public stockholding

Storage aid (Contribution frais de stockage): budgetary expenditure to cover operation and maintenance costs of compulsary storage of cereals, rice, oilseeds, sugar, potatoes, and apple juice.

O. Miscellaneous

1. National expenditure

2. Sub-national expenditure

Cantonal net budgetary expenditure (dépenses nettes des cantons en faveur de l’agriculture): half of the cantonal expenditure on agriculture (the other half is included under PSE miscellaneous payments). Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

Communal net budgetary expenditure (dépenses nettes des communes en faveur de l’agriculture): half of the communal expenditure on agriculture (the other half is included under PSE miscellaneous payments). Calculated on a fiscal year basis and allocated to all commodities according to their relative values of production.

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

Milk Price Supplement for Cheese Production (supplément de prix pour le lait transformé en fromage): payment per tonne of milk (within the production quota) delivered to cheese producers until 1998 (the part paid to farmers is included under PSE, B.2 payments based on output). Calculated on a fiscal year basis and allocated to milk.

Price Compensatory Aids (placement de beurre, placement du fromage, réduction spéciale des prix des fromages à pâte molle et à pâte midure indigènes, supplément pour la fabrication des fromages à pâte dure dans la zone d’estivage, prime de regroupement en économie fromagère, mésures propres à allèger le marché du lait, autres mesures d’économie laitière, contributions frais de stockage et de ventes à prix réduits (viande), mesures temporaire concernant la mise en valeur de la viande, contribution achats d’allegement du marché du bétail, réduction du prix des céréales panifiable à l’aide de recettes douanière, placement des céréales indigènes de moindre qualité, egalisation de la marge de mouture, provisions issues des droits de douane sur blé importé, droits d’entrées (cereales panifiable), placement des récoltes de colza et de soja; supplement de prix sur les huiles et graisses comestibles, utilisation des betteraves sucrières indigènes; placement du vin; droits supplément sur le vin, supplément de prix sur les légumes congelés, écoulement du tabac indigène, écoulement des abricots du Valais): budget expenditure to processors of specific commodities to cover their deficit due to low selling prices set by the government compared with the guaranteed price paid to producers. The measures had been discontinued by 1998. Calculated on a fiscal year basis and allocated to the respective commodities.

Tariff Revenues for Financing of Price Compensatory Aids (taxe sur le beurre importé, suppléments de prix sur le fromage et le poudre de lait importé, taxe sur la crème, taxe sur le lait de consommation et lait de conommation. partiellement écrémé): import charge revenues to finance the reduction of raw material costs of domestic agro-processors. These programmes were discontinued in 1999.

Price Reduction for Butter (Promotion des ventes de beurre dans le pays): Budget expenditure to reduce the purchasing price for food processors. The measure was launched in 1999. Calculated on a fiscal year basis and allocated to milk.

Price Reduction for Cream and Milk Powder (Promotion des ventes de lait écremé et poudre de lait dans le pays): Budget expenditure to reduce the purchasing price for food processors. Calculated on a fiscal year basis and allocated to milk.

Price Reduction for Milk and Dairy Product (Promotion des ventes de lait et des produits laitiers dans le pays): Budget expenditure to reduce the purchasing price for food processors. The measure was launched in 1998. Calculated on a fiscal year basis and allocated to milk.

Price Reduction for Beef (Encouragement de la vente du bétail): Budget expenditure to reduce the purchasing price for food processors. The measure was launched in 1998. Calculated on a fiscal year basis and allocated to beef and veal.

Sales Guarantee for Slaughter Cattle (garantie de placement du bétail de boucherie): budget expenditure financed by taxes on imported meat to cover the costs of importers required to purchase domestic production at target prices. The programme was discontinued in 1989. Calculated on a fiscal year basis and allocated to beef and veal.

Meat fund (dépense fonds viande/fonds de reserve): Budget expenditure to reduce the purchasing price for food processors. The measure was launched in 1998. Calculated on a fiscal year basis and allocated to livestock.

Price Reduction for Wool (placement de la laine de mouton): Budget expenditure to reduce the purchasing price for food processors. The measure was launched in 1998. Calculated on a fiscal year basis and allocated to wool.

Price Reduction for Eggs(dépense de la caisse de compensation des prix des oeufs): Budget expenditure to reduce the purchasing price for food processors. Calculated on a fiscal year basis and allocated to eggs.

Compensation to wheat mill (mesures concernant la répartition des moulins à blé tendre): Budget expenditure to reduce the purchasing price for food processors. Calculated on a fiscal year basis and allocated to wheat.

Lump Sum Payment to Sugarbeet Processors (indemnité forfaitaire pour le mandat (sucre)): budget outlays for support of the sugar industry. The programme was launched in 1999. Calculated on a fiscal year basis and allocated to sugar.

Price reductions on fruit for needy people (ventes à prix réduites de fruits en faveurs de personnes nécessiteuse): budget outlays for food subsidies. Calculated on a fiscal year basis and allocated to fruits ("other commodities").

Mesures to support the fruit industry (mésures en faveurs de la culture fruitière): Budget expenditure to reduce the purchasing price for food processors. Calculated on a fiscal year basis and allocated to fruits ("other commodities").

Support for pilot and demonstration facilities (contributions aux installations pilotes et aux installations de démonstrations): Budget expenditure pilot and demonstration projects in the food industry. Calculated on a fiscal year basis and allocated to all commodities according to their relative value of production.

S. Excess Feed Cost

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

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)]

Note: *) Since 1999, the payment is subject to compliance with certain environmental minimum standards. Moreover, the sum of all direct payments (except the payments bases on output) is limited to SF 45 000 per farm-employee. The payment rate is progressively reduced, if farm income exceeds SF 80 000 or farm assets exceeds SF 800 000. No payment is made, if farm income exceeds SF 100 000 or farm assets exceed SF 1 million.

Sources:

Bundesamt für Finanzen, Finanzrechnung, Bern, various issues.

Bundesamt für Landwirtschaft, Direktzahlungen an die Landwirtschaft, Bern, various issues.

Bundesamt für Landwirtschaft, Agrarbericht, Bern.

Bundesamt für Veterinärwesen, Bern.

Schweizerischer Bauernverband, Statistische Erhebungen und Schätzungen, Brugg, various issues.

Schweizerische Genossenschaft für Getreide und Futtermittel, Bern.

Treuhandstelle der Schweizerischen Getreidepflichtlagerhalter, Bern.

Table 3. Producer Support Estimate by commodity

Definitions and Sources: see Definitions and Sources for Tables 1 and 2 above.

Definitions:

I. Level of production

Crops: Total farm level production ("Verwendbare Produktion der Pflanzenkulturen") during the crop year. Reference data sources [2] and [5].

Milk: Total milk production during the calendar year ("Gesamte Versorgungsbilanz der Vollmilch"). Reference data sources [2] and [5].

Meat: Total farm level production during the calendar year ("Verwendbare Produktion von Fleisch"). Reference data sources [2] and [5].

Eggs: Total production of eggs in the shell ("Betriebsbilanz der Hühnereier"). Reference data sources [2] and [5].

II. Producer price

Crops and livestock: weighted average price received by farmers ("Erzielte Produzentenpreise landwirtschaftlicher Erzeugerpreise"). Reference data sources [2] and [5].

IV. Level of consumption

Crops and livestock: total consumption during the year ("Nahrungsmittelversorgung der Schweiz nach Nahrungsmittelgruppen und -arten"). Reference data source [2] and [5].

VII. Reference prices

Wheat, maize, other grains and sugar: unit value of import obtained from reference data sources [1] and [2].

Oilseeds: c.i.f., Europe, “0”, Hamburg, calendar year [6].

Milk: New Zealand average farm-gate price adjusted for fat content and transport cost.

Beef and veal: unit export value in extra-EU trade of meat of bovine animal, fresh, chilled and frozen (code 0111, SITC, Rev. 3) [4] and unit export value in extra-EU trade to Switzerland of veal, fresh, chilled and frozen [5], adjusting for processing costs.

Pigmeat: EU reference price (Unit export value in extra-EC trade of pigmeat), , adjusting for processing costs [4].

Poultrymeat: unit export value in extra-EU trade of 70% chickens, frozen (NIMEXE Code 020203 and, since 1989, weighted average of NC 02071015 and NC 02072110 of external trade statistics), calendar year, adjusting for processing costs [4].

Sheepmeat: EU import price of frozen New Zealand lamb, grade PM, c.i.f. UK, calendar year, net of slaughter and freezing costs, plus 30% adjustment to account for the difference in weight and quality between frozen New Zealand lamb and fresh UK lamb [3].

Eggs: unit export value in extra-EC trade of poultry eggs in shell, fresh or preserved, other than eggs for hatching (NIMEXE Code 040514 and since 1988 NC 04070030 of external trade statistics), calendar year, adjusting for processing costs [4].

Sources:

[1] Bundesamt für Außenwirtschaft, Bern.

[2] Bundesamt für Landwirtschaft, Bern.

[3] European Commission.

[4] EUROSTAT, COMEXT databank.

[5] Schweizerischer Bauernverband, Statistische Erhebungen und Schätzungen, Brugg, various issues.

[6] Oil World Annual, various issues.