UNITED STATES: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Luis Portugal

Email: luis.portugal@oecd.org

Tel :

(33-1) 45 24 95 34

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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, 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 Ė 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 Ď000 dozen by 1412.4 to convert it to Ď000 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 1. UNITED STATES: 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 (from 1996)

Loan rate gain: (from 1996) Price support associated with the commodity loan rate (payment per tonne at which the Commodity Credit Corporation (CCC) will provide a loan to farmers, using the harvested loan crops -- wheat, feed grains, cotton, rice, oilseeds, tobacco, peanuts, sugar, honey, and mohair (from 2002 also dry peas, lentils and small chickpeas) -- as collateral for the loan. If producers want, the Government will take the crop under loan as repayment of the loan principal plus interest. When the domestic market price is below the loan rate, farmers may realise a gain by forfeiting the crop used as collateral. The gain is the difference between the announced loan rate and the domestic market price, multiplied by the quantity of each specific commodity forfeited at the loan rate on a crop year basis. For sugar the loan rate gain is 60% for growers, the remaining 40% is attributable to processors and included under R. Transfers to consumers from taxpayers in the CSE [1].

Loan deficiency payments: (from 1996) Available to producers who are eligible to receive price support loans but who agree to forgo the loan. The payment is the difference between the loan rate and the domestic market price, multiplied by the quantity of each specific commodity for which the loan deficiency payment is requested or otherwise eligible for on a crop year basis [1].

Marketing loan gain: (from 1996) Marketing loan provisions allow contract crop producers to repay price support loans at the lower of the announced loan rate or the prevailing world market price, represented by the "daily posted county prices" (PCP, which is generally the market price less transportation costs between the market and the county). If a marketing loan is taken up, all of the interest otherwise owed is forgiven. The gain is the difference between the announced loan rate and the PCP, multiplied by the quantity of each specific commodity for which the loan was requested on a crop year basis [1].

Certificate exchange gain: (from 1996) Net gain to producers due to settlement of commodity loans at a rate lower than the original per-unit loan rate, where certificates are used for the repayment [1].

Commodity loan interest gain: (from 1996) Interest gain on CCC commodity loans, calculated on a crop year basis, is the difference between the market and the CCC interest rates multiplied by loan outstanding for each crop placed under loan net of growers' assessment for sugar and oilseeds. It also includes the additional estimated interest gain when commodities are forfeited to settle the loan, or when the loan is paid back under a marketing loan arrangement, or with genetic certificates, in which cases loans are interest free. For sugar the loan interest gain is 60% for cane growers, with the remaining 40% plus 100% of the gain for beet attributed to processors and included under R. Transfers to consumers from taxpayers in the CSE [1].

On-farm storage: (from 1996) Payments encouraging producers to store cereals while prices are low and sell later when prices are higher. Under the Farmer-Owned Reserve Program cereal producers may extend a regular 9-month loan beyond its regular term and receive storage payments per tonne of cereal under the loan for the extended period (on a crop year basis) [1].

Crop emergency assistance: Payments per tonne to producers of oilseeds, cotton, tobacco, cranberry, apple and peanuts. For oilseeds, the payments were based on 1997 or 1998, and on 1999 for new producers [1].

Dairy Indemnity Program: Indemnity payments to dairy farmers for milk removed from commercial markets because it contained residues of specific chemicals or toxic substances [2].

Dairy market loss payments: Payment per tonne of milk on quantities marketed to compensate for market losses due to low prices [1].

Dairy disaster payments: Payment per tonne of milk to compensate for milk losses due to natural disasters [1].

Vermont sheep indemnity: Cash payment to Vermont sheep producers based on current output to compensate for losses due to public health reasons.

Sheep and lamb adjustment assistance program: Cash payments to producers based on current output to help small and medium size producers compete [1].

Wool and mohair payments: Cash payments to producers of wool and mohair [1].

Sugar payment in kind: A share (60%) of the expenditure on the Payment-in-kind Diversion Program attributed to sugar beet and sugarcane farmers to assist them deal with low prices caused by excess of sugar on the domestic market. The remaining 40% are attributed to processors and are included under R. Transfers to consumers from taxpayers in the CSE [1].

2. Based on limited output (up to 1995)

Loan rate gain: as defined above.

Loan deficiency payments: as defined above.

Marketing loan gain: as defined above.

Commodity loan interest gain: as defined above.

On-farm storage: as defined above.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Crop disaster payments: Payments under Ad Hoc Disaster Assistance Program covering crop yield losses greater than 35 (40) per cent of expected production for producers with (without) crop insurance. For "program crops"(wheat, feed grains, cotton, rice, oilseeds, tobacco, peanuts, sugar) the payment has been 65 per cent of the target price (loan rate) for producers participating (non participating) in the commodity programmes. Calculated on crop year basis and allocated to "program crops" by the USDA based on drought incidence. Payments for the loss of cropland due to flooding were added for 2000 [1].

Tree and vineyard disaster payment: payments under the 1998 Tree Assistance Program to eligible tree and vineyard growers who incurred losses due to natural disaster [1].

Livestock disaster payments: Livestock Indemnity Program [1]. [Inadvertently included under this category, payments under this programme will be moved to F.3.2. Payments based on fixed inputs.

Hogs production assistance: (in 1990) Payment per hog under the Small Hog Operation Payment Program to producers who marketed less than 2 500 hogs during the second half of 1998 [1].

Dairy disaster payments: (in 1988) Payment per head to dairy producers [1].

Crop insurance: Indemnity payment that eligible producers receive if their crop loss qualifies under the Federal Crop Insurance Program. Per unit indemnities are paid whenever the yield is below the guaranteed yield level. The guaranteed yield level is selected by producers as 50, 65, or 75 per cent of their average yield. The annual amount of the payment for a specific commodity is the indemnity paid by the USDA for the commodity, minus the premium the producer pays for the insurance coverage of the commodity. Commodity specific data is on a crop year basis [1].

Non-insurable crop payments: Payments based on area and average historical yields to producers of crops not currently insurable under other programmes and with yield losses greater than 35% of the average yield for the area where the farm is located, and 50% of the historical average for the farm [1].

2. Based on limited area or animal numbers

Deficiency payments: (up to 1995) Payments made to producers of "contract crops" (wheat, feed grains, upland cotton, and rice), defined as the national payment rate for each specific crop times the producerís payment base yield and multiplied by the producerís payment eligible base area. The rate per tonne is the difference between the target price and the higher of the loan rate or market price. The base yields are fixed reflecting the simple average of programme yields for 1981-1985. The base area is the average of the area planted for the 5 preceding crop years. Eligible producers are required to comply with acreage reduction and conservation provisions. Calculated on a crop year basis [1].

Diversion payments: Payments under Acreage Reduction Program and Paid Land Diversion Program for land temporarily withdrawn from a specific crop production (excluding long-term land withdraw under Conservation Reserve Program). Calculated on a crop year basis [1].

"Counter cyclical payments"

Granted for the first time in 2002 these payments have similarities with payments based on area planted and payments based on historical entitlements, but they do not fit well in any of these two categories of measures. This is why these payments are provisionally placed between these two categories of payments, pending review of the PSE classification over the coming year.

Counter cyclical payments: (from 2002) Payment for wheat, feed grains, upland cotton, rice, oilseeds and peanuts defined as the national payment rate for each specific crop times the producerís payment base yield and multiplied by 85% of the producerís payment eligible base area. Base area and yields may be those from the 1996 Farm Act or the 1998-2001 averages. For each commodity, the rate per tonne is the difference between the target price and the trigger level, which is the return per tonne (i.e. the higher the market price or loan rate) plus the Direct Payment per tonne.

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production

2. Based on historical support programmes

PFC payments: (from 1996) The annual predetermined amount of the Production Flexibility Contract Payments fixed for the years 1996 to 2002. Payment rates are determined by allocating the annual total amount among former contract crops according to projected shares of deficiency payments, and dividing the total crop amounts by the historical production of land eligible enrolled under the former programme crops. Eligible producers are required to comply with conservation and planting flexibility provisions, as well as to keep the land in agricultural uses. Calculated on a crop year basis and allocated in proportion to current area planted with former contract crops [1].

Crops' market loss payments: (from 1998) Total amount of "market loss assistance payment" added to the annual PFC payments [1].

Direct payments for crops: (from 2002) Replace the PFC payments provided under the 1996 Farm Act and cover the same crops plus oilseeds and peanuts. Annual payments defined as the fixed rates for each specific crop times the producerís payment base yield and multiplied by 85% of the producerís payment eligible base area. Base yields are those previously used for PFC payments. Producers have the option to use the base areas as for PFC payments, or to update them to their average area planted during 1998-2001 for each eligible crop [1].

Peanut quota buy out: (from 2002) Payment to farmers to cover the loss associated with the removal of marketing quotas. Based on 2001 quota levels, the payment is made in 5 annual installments during the 2002-2006, but quota owners may opt to take the total amount in a lump sum [1].

E. Payments based on input use

1. Based on use of variable inputs

Agricultural Credit Program: Federal and State interest concessions on farm operating loans under the Agricultural Credit Insurance Fund Program, estimated as the difference between the market interest rate and the rate actually charged to farmers, multiplied by the total volume of loans outstanding, including: two-thirds of federal short term production loans, one-half of loan guarantees and three-fourth of state credit programmes (the rest is included under E.3. Based on use of fixed inputs) [2]. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production [1].

Energy payments: Value of Federal and State exemptions or reductions in excise and sales taxes on diesel fuel for farmers relative to the standard rate taxes on fuel. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production [1].

Irrigation payments: Proportion (38.7 per cent) of the annual expenditure of the Bureau of Reclamation (US Department of the Interior) estimated to apply to the construction, operation and maintenance of irrigation works for agriculture. Calculated on a budget year basis and allocated to crop irrigated acreage on Western BORWater projects according to the share in the total value of crop irrigated production [1].

Grazing payments: Budget expenditure for livestock grazing on public range land in 16 Western States operated by the Forest Service and Bureau of Land Management, net of fees paid by livestock producers. Calculated on a budget year basis and allocated to beef and sheep accounting to their share in the total value of production [3].

Feed assistance: Public expenditure for compensating livestock producers for feed crop disasters and pasture damaged by drought (Emergency Feed Assistance Program, Forage Assistance Program, Livestock Assistance Program, Disaster Reserve Assistance Program, American Indian Livestock feed, Pasture recovery program and Flood compensation program). Calculated on a budget year basis and allocated to milk, beef and sheep accounting to their share in the total value of their production [3].

2. Based on use of on-farm services

Extension: Budget expenditure of the Extension Service, the Agricultural Cooperative Service, and on Outreach for Socially Disadvantaged Farms under the Farm Service Agency and the Natural Resource Conservation Service. Calculated on a budget year basis and allocated to all commodities according to their share in the total value of production [1].

Environmental quality incentive program: Created in 1996, this programme provides cost-share payments and technical assistance to producers for animal waste facilities and for implementing farm practices able to reduce soil, water, and related natural resources problems, including grazing land, wetland, and wildlife habitat. At least half of the funding is for environmental concerns associated with livestock production. Only the share of expenditure for technical assistance is included under this category, the share for cost-share payments is included under F.3. Payments based on constraints on a set of inputs [1].

Grazing Land Conservation Initiative: Budget expenditure to provide technical and educational assistance to conserve and enhance private grazing land. [No data available]

Pest and disease control: budget expenditure of the Animal and Plant Health Inspection Service and on pesticide control under the Environmental Protection Agency. Calculated on a budget year basis and allocated to all commodities accounting to their share of the total value of production [2].

State technical assistance: half of the estimates of State expenditure on agriculture is considered as being essentially for financing on-farm services, especially extension and technical assistance for environmental protection (the other half is considered as being used to support State general services to agriculture and included in GSSE under O. Miscellaneous). Calculated on a budget year basis and allocated to all commodities according to their share in the total value of production [1].

3. Based on use of fixed inputs

Agricultural Credit Program: Federal and State interest concession on farm loans other than operating loans under the Agricultural Credit Insurance Fund Program, estimated as one-third of the difference between the market interest rate and the rate actually charged to farmers, multiplied by the total volume of loans outstanding (see E.1.Based on use of variable inputs) [2]. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production [1].

Emergency Conservation Program: Payments to producers to share costs of emergency conservation measures needed to rehabilitate farmland damaged by floods, hurricanes, tornadoes, or other natural disasters, and for carrying out emergency water conservation during periods of severe drought. Calculated on a budget year basis and allocated to all crops accounting to their share in the total value of crop production [3].

Farmland Protection Program: USDA budget expenditure (CCC) for the purchase of conservation easements (which introduce limitations over the rigths to use the land) of land having prime or unique soil or other desirable production qualities that are threatened by urban development . Calculated on a budget year basis and allocated to all crops accounting to their share in the total value of crop production [3].

F. Payments based on input constraints

1. Based on constraints on variable inputs

Soil and Water Loans Program: Low interest loans and loan guarantees to assist farmers to using sound soil and water conservation practices under the Soil and Water Loans Program and the Farms for the Future Program. Difference between the market interest rate and the rate actually charged to farmers, multiplied by the volume of loans made during the year, plus budget outlays for recognised losses on loan guarantees. Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [3].

2. Based on constraints on fixed inputs

Conservation Reserve Program: Annual rental and cost-share payments to producers for converting and retaining highly erodible and/or environmentally sensitive cropland in approved conservation uses for 10-15 years. Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Wetland Reserve Program: Annual cost-share payments or lump-sum payments to producers for implementing an approved wetland restoration and protection plan and providing a permanent or long-term easement (limitations over the right to use the land). Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Flood risk reduction contracts: Payments to producers eligible for PFC payments that have a contract area frequently flooded and receive a maximum of 95 per cent of PFC payments and projected crop insurance payments in lieu of PFC payments. In return, producers must comply with provisions of the Conservation Reserve and Wetland Reserve Programs and forego future conservation programme payments, disaster payments, and loans for contract crops, oilseeds and extra long staple cotton. [No data available].

Water Bank Program: Annual payments to producers who agree not to drain, burn, fill, or otherwise destroy wetland and not to use it for agricultural purposes for 10 years. (This land is important for preserving nesting, breeding, and feeding areas of migratory waterfowl.) Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Dairy Termination Program (program ended): Payments made to milk producers agreeing to terminate production for at least 5-years. Calculated on a budget year basis and allocated to milk [3].

Livestock Indemnity Program: Payments based on animal values to compensate producers for losses of animals due to natural disasters [1]. [Payments currently included under C.1. Payments based on animal numbers.]

3. Based on constraints on a set of inputs

Colorado River Basin Salinity Control Program: Cost-share payments and technical assistance to producers for improving on-farm irrigation and erosion management to increase water quality for downstream users. Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Agricultural Conservation Program: Cost-share and incentive payments to producers to carry out farming practices reducing soil erosion, improving water conservation and quality, enhancing forest resources, and treating other natural resource problems. Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Great Plains Conservation Program: Cost-share payments and technical assistance to producers in the 10 Great Plains States for implementing farming practices to achieve long-run solutions to conservation problems associated with drought and ecologically fragile land. Calculated on a budget year basis and allocated to crops accounting to their share in the total value of crop production [2].

Environmental Quality Incentive Program: Created in 1996, this programme includes the three previous programmes. It provides cost-share payments and technical assistance to producers for animal waste facilities and implementing farm practices for reducing soil, water, and related natural resources problems, including grazing land, wetland, and wildlife habitat. At least half of the funding is for environmental concerns associated with livestock production. Only the share of expenditure for cost-share payments is included under this category, the share for technical assistance is included under E.2. Payments based on use of on-farm services [1].

Rural Clean Water Program: Cost-share payments and technical assistance for carrying out approved plans in project areas to develop and test means of controlling agricultural nonpoint source water pollution in rural areas. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production [2].

Wildlife Habitat Incentive Program: Cost-share and incentive payments to producers implementing farming practices to develop wildlife habitats. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production

G. Payments based on overall farming income

1. Based on farm income level

Income tax concessions: Value of concessions to agriculture relatively to the standard income tax provisions. It includes deductions from taxable incomes from farming; farmersí marketing and purchasing co-operatives; and export transactions of agricultural commodities. Calculated on a budget year basis and allocated to all commodities accounting to their share in the total value of production [1].

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

Research Institutions: USDA budget expenditure on Co-operative State Research Service, National Agricultural Statistic Service, Economic Research Service, Agricultural Research Service, and Office of International Co-operation and Development, and expenditure under the Tennesse Valley Authority and Bureau of the Census budgets [2].

Resource Conservation and Development Programs: Financial assistance for individuals (including farmers) and areas to develop area-wide plans for resource conservation and development [2].

Conservation Operations: USDA budget expenditure on Natural Resources Conservation Service for the preparation of conservation plans and establishment of measures to conserve soil and water, including administration of watersheds research, investigation, surveys, and planning, and for technical assistance to carry out preventive measures (Watershed Planning, and River Basin Surveys and Investigation), as well as Miscellaneous Contributed Funds available for work under co-operative agreements for soil survey, watershed protection, and resource conservation development activities [2].

J. Agricultural schools

[No expenditure available, but some expenditure on agricultural schools is included in PSE under Payments based on use of on-farm services (Extension) as it could not be disaggregated].

K. Inspection services

USDA budget expenditure on Federal Grain Inspection Service, Food Safety Inspection Service, and Packers and Stockyard Administration [2].

L. Infrastructure

Crop Insurance Corporation: USDA budget expenditure on administrative and operating expenses of the Federal Crop Insurance Corporation [2].

Rural Utilities Service: USDA budget expenditure on grants, direct loans, and guarantees loans made by qualified lenders, to suppliers of electric, telecommunications, and water/wastewater/waste disposal services in rural areas [2].

Rural Housing Service: USDA budget expenditure on grants, direct loans, and loan guarantee provided through rural housing and community facility programmes [2].

Rural Business Co-operative Service: USDA budget expenditure on loan and grant programmes and technical assistance to co-operatives and rural businesses [2].

Watershed and Flood Prevention Operations: USDA budget expenditure (CCC) for financial assistance to local sponsors (State and local units of Federal Government) and to individuals for planning and installing infrastructure for flood prevention and for conservation, development, utilisation and disposal of water [2].

M. Marketing and promotion

Marketing Services: USDA budget expenditure on the Agricultural Marketing Service for assisting producers and handlers of agricultural commodities by providing marketing services, including market news service, inspection, grading and standardisation, market protection and promotion, wholesale market development, transportation services, and payments to States [2].

Perishable commodities: USDA budget expenditure on the Agricultural Marketing Service for controlling (through licenses, arbitrage of informal agreements, etc.) marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce to ensure equitable treatment to farmers, and licensed commission merchants, dealers, and brokers [2].

Strengthening Markets, Income, and Supply: USDA budget expenditure on the Agricultural Marketing Service for expanding outlets for non-basic commodities [2].

Commodity Grading Programs: USDA budget expenditure on the Agricultural Marketing Service under Miscellaneous Trust Funds for providing grading, examining, and certifying services for a wide variety of fresh and processed food commodities, including poultry, livestock, meat, dairy products, and fresh and processed fruits and vegetables [2].

Foreign Assistance Programs: USDA budget expenditure on the Commodity Credit Corporation Fund (Export Loans Program Account and Export Guarantee Financing Account) under the "Export donations ocean transportation"[5] and under the Foreign Agricultural Service and General Sales Manager (Public Law 480) for financing programmes opening, expanding and maintaining global market opportunities through international trade [2].

Domestic Food Assistance Programs: USDA budget expenditure on administrative expenses on domestic food assistance programmes (Food Program Administration) [2], , and the "delivery cost" of the Food Stamp Program, calculated as 64 per cent of the total budgetary expenditure (see V.1.R. Transfers to consumers from taxpayers).

N. Public stockholding

USDA budget expenditure on the Commodity Credit Corporation Fund for financing the operational and maintenance costs of the Food Security Commodity Reserve (excluding the buying value of acquisitions) - "Processing, storage and transportation" [5].

O. Miscellaneous

1. National expenditure

2. Sub-national expenditure: Half of total amount of the estimated State expenditure on agriculture as a proxy of the share of it used to support State general services to agriculture (specially, to support agricultural associations, fairs, and shows, agricultural schools and experiment stations, to promote improvement and control of livestock production and dairy products, to promote improved methods of storing, packing, labelling and marketing of farm products, and regulatory activities such as inspection and licensing), for which the Secretariat does not have enough information to allocate it to the previous categories of payments. (The other half is included in PSE under E.2. Payments based on use of on-farm services).

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

Tax relief on vegetable ethanol: Value of tax credit for oil companies on the quantity of agriculture ethanol blended with petrol (gasoline). Allocated to maize. [No data available].

Tax relief on vegetable oil: Value of tax credit for public vehicle fleets burning a fuel-blend of at least 20 per cent vegetable oil and diesel. Allocated to soybeans. [No data available].

Food Stamp Program: USDA budget expenditure on domestic food assistance through coupons redeemable at retail food stores, multiplied by 0.36 (farm value per dollar of retail food expenditure of food stamp households) to express it at the farm gate level, plus Nutrition Assistance to Puerto Rico and Food Distribution Program on Indian reservations. Calculated on a budget year basis and allocated to all commodities according to their shares in the food budget of households receiving food stamps [2], [4].

Child Nutrition Programs: USDA budget expenditure on domestic food assistance, including School Lunch and Breakfast Programs, Child and Adult Care Feeding Program, Summer Feeding and Special Milk Programs. Calculated on a budget year basis and allocated to all commodities according to their shares in the food budget of households receiving food stamps [2], [4].

WIC Nutrition Program: USDA budget expenditure on the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Calculated on a budget year basis and allocated to all commodities according to their shares in the food budget of households receiving food stamps [2], [4].

Commodity Assistance Program: USDA budget expenditure on domestic food assistance, including Commodity Supplemental Food Program, Nutrition Program for the Elderly, Emergency Food Assistance, Temporary Assistance and Donation Program for Selected Groups. Calculated on a budget year basis and allocated to all commodities according to their shares in the food budget of households receiving food stamps [2], [4].

Sugar loan interest gain and production levy: Processor share (40%) of total interest gain on CCC commodity loan for cane plus 100% of the gain for beet, net of 40% of the total production levy paid by sugar processors to the CCC. (The remaining 60% of the cane total interest gain is in the PSE under B. Payments based on output; and 60% of total production levy paid by the cane and beet growers is included in Table 2 under MPS) [1].

Sugar loan rate gain: Processor share (40%) of total loan rate gain on CCC sugar loan for cane and beet (the remaining 60% of the total loan rate gain is in the PSE under B. Payments based on output [1].

Sugar Payment in Kind: Share (40%) of the expenditure on the Payment-in-kind Diversion Program attributed to sugar processors, the remaining 60% is attributed to farmers and included in the PSE under B. Payments based on output [1].

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] Information directly provided by USDA

[2] The Budget of the United States Government. Appendix: Department of Agriculture. Annual.

[3] WTO, United States notifications.

[4] USDA, The Economic Impact of Food Assistance Program. Modifications on Agriculture and the Economy. ERS, January 1995.

[5] Table 35 - CCC Net Outlays by Commodity & Function. Agricultural Outlook. E.R.S., USDA various issues.

 

Table 3. Producer Support Estimate by commodity

 

Definitions and Sources: see Tables 1 and 2 above.