CANADA: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Roger Martini

Email: roger.martini@oecd.org

Tel :

(33-1) 45 24 17 40 

Fax :

(33-1) 45 24 18 90

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources 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, oats, rice, sorghum, soybeans, rapeseed, milk, beef and veal, pigmeat, poultry and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

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

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/dataoecd/36/47/1937457.pdf].

 

Table 1. CANADA: 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

Agricultural Stabilization Act (ASA): Payment per tonne based on participating producer’s eligible grain sales. Voluntary stabilisation scheme financed by the federal and provincial governments. Payment calculated as the difference between the current market price and 90 per cent (or some other levels) of the average market price of the previous five years adjusted for changes in costs relative to the average costs in the previous five years multiplied by marketed quantities. Total payment to farmers is considered for the specific commodities.

National Tripartite Stabilization Program (NTSP, 1986-1992): Payment per tonne based on participating producer’s eligible sales of red meats, several field crop, some horticultural products, sugar beet and honey. Voluntary stabilisation scheme financed equally by producers, by some provincial governments and by the Federal Government. Two-thirds of stabilisation payments to farmers (i.e., government share of contributions) is considered for individual commodities.

Western Grain Stabilisation Act (WGSA, 1983-1987, 1990) payments and write down: Payment based on producer’s eligible grain sales. Voluntary income stabilisation programme for Western grain farmers funded by both the Federal government (67 per cent) and grain producers. Payment made when net cash flow (cash receipts minus cash variable costs) from eligible grain sales was less than the average net cash flow over the previous five years. The government contribution to the payment, i.e. 67 per cent of payment, is allocated in proportion to farm cash receipts in four Western provinces.

Advance Payment Program (APP): Consolidates the former Advance Payments for Crops Act and Prairie Grain Advance Payments Act. It provides cash advances with an interest-free feature on the first C$50 000 to eligible producers to store eligible crops after harvest. The advance is limited to a maximum of C$250 000 per producer and the guarantee rate cannot exceed 50 per cent of the expected average farm gate price for the crop year. The advance must be repaid within a time frame, which cannot exceed 12 months. Federal expenditures on the interest paid by the Government of Canada to banks is allocated to crops based on which producer marketing organization acts as the agent for the loan. Where the organization is the Canadian Wheat Board, the commodity is allocated to wheat or barley based on initial payments made by the Board to producers.

Spring Credit Advance Program (SCAP) (from 2000): Federally funded program providing interest-free loans up to C$50 000 per producer to assist farmers in seeding crops. It is implemented in a similar manner as APP. Allocated to crops using the same as the Advance Payment Program (APP) in 1999-2000.

Western Grain Transportation Adjustment Fund (WGTA) - Freight Cost Pooling Assistance Program, Phase I (1995 and 1996): A payment of C$45 million was made to provide assistance to eligible wheat and barley producers in Manitoba and eastern Saskatchewan who made deliveries to the Canadian Wheat Board (CWB) between 1 August 1995 and 31 July 1996, as recorded in their permit book. Support entitlement based on 1995/96 deliveries (Phase I Manitoba, Phase I Saskatchewan). Total public expenditure in fiscal years 1995/96 and 1996/97 is allocated to wheat and barley in proportion to their farm cash receipts. [Phase II of this programme is classified in D.1].

Provincial Stabilisation Programmes (1986 to 1995): Contributions or payments by provincial governments (other than Quebec) to stabilisation programmes (which did not involve the federal government). Product-specific data are available for beef and pork.

Assurance-stabilisation du revenu agricole (ASRA Québec): Payment covering the difference between a "stabilised" price and the market price to participating producers, multiplied by production or sales. Government contributions to program (i.e, two times producer contributions) are counted.

Apple programs (before 1995): Payments to compensate apple farmers for their losses. Compensation was negotiated after losses occurred.

2. Based on limited output

Dairy Payment: Government expenditure (fiscal year) on payments per tonne of industrial milk within the quota quantity, provided under the Agricultural Stabilization Act (ASA) and later under the Farm Income Protection Act.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Gross Revenue Insurance Plan (GRIP): Payment to crop producers based on the shortfall between market revenue and the target revenue for crops. Target revenue per acre for an individual crop is based on historical yields, a 15-year moving average of price and the level of crop insurance chosen by the producer. The plan is financed by farmers (one-third) and government contributions (two-thirds). The government contribution to total payments, i.e. 67 per cent of payments for each crop is considered.

Market Revenue Program (Ontario, 1996): Succeeded GRIP in Ontario only. No contribution from farmers. Crop-specific payments to farmers when market prices of eligible grains and oilseed crops are lower than support levels (85 per cent of an average price over time).

Crop Insurance payments: Government contribution to a voluntary crop insurance scheme which covers between 70 and 90 per cent of average yield (depending on the crop and province) over a 10 to 15 year-period. Farmers finance half of the scheme, but over the years government contributions have amounted to 56 per cent of indemnities paid. Government contribution for a crop in one year is calculated as 56 per cent of indemnities for that crop in that year.

Wildlife Crop Damage Compensation (waterfowl, big game): Federal contribution to the Waterfowl Crop Damage Compensation Program and Big Game Damage Compensation Program. Both programs compensate producers for part of yield losses to crops caused by animals. Like crop insurance, benefits are paid on an acreage basis. For the waterfowl program, allocation of the benefit by crop is based on administrative data. For the big game program, allocation of the benefit is based on provincial FCR by crop. [The provincial contribution is counted under H. Miscellaneous payments - subnational payments.]

Special Canadian Grain Program (SCGP I & II, 1986-1987): Government expenditures on payments to producers based on a formula which took into account seeded acreage, representative regional yields and a rate of assistance for each commodity proportional to its price decline.

Farm Support and Adjustment Measures II (FSAM II, 1991): Government expenditures on payments made on the basis of grain seeded acreage of crops other than horticulture and expenditures on "Long term adjustment in horticulture" FSAM I and FSAM II" (apple and potato programmes, grape and tobacco adjustment programmes) [which are included under E.1. Payments based on use of variable inputs or F.2. Payments based on constraints on fixed inputs] [FSAM I expenditures on crops other than horticulture are included in GRIP].

Special Income Assistance Program (SIAP, 1990): Government expenditures on payments to producers provided under a flat rate per seeded acre, allocated to crops in proportion to seeded acreage.

Canadian Crop Drought Assistance Program (CCDAP, 1988): Government expenditures on payments to producers for production losses due to drought. Payments were provided per acre of crops planted and per head of livestock (livestock drought assistance program). The Greenfeed program operated to make more feed available in the affected region, thereby reducing the price of feed is classified under E.1. Greenfeed is assumed to benefit only beef producers. CCDAP benefits both livestock and crops. Allocation among livestock is based on administrative data. Allocation among crops is based on farm cash receipts of the provinces affected.

Federal Disaster Payments (1984-1986): Assumed to be provided like CCDAP.

 

Fed Cattle Set-Aside Program (2004): Payments made to producers who withhold cattle from market are made on the basis of the price spread defined as the difference between the mid-west US market price in Canadian dollars and the average Alberta market price. Allocated to beef.

 

Feeder Cattle Set-Aside Program (2004):  Producers received a payment of $190/head to compensate them for the costs associated with holding the calves back from the slaughter market until January 1, 2006 plus $10/head for the costs associated with the set-aside tags. Allocated to beef.

2. Based on limited area or animal numbers

Potato Programs (PVYN, etc): Compensation payments based on area. The area for which payments applied was limited.

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production

Western Grain Transition Payment Program (WGTPP) (1995-1996) – Government expenditure on a one time payment to producers (spread over two fiscal years) who are owners of eligible prairie farmland, plus estimated fiscal benefit (tax concession) to farmers on this payment (which was treated for tax purposes as a capital gain rather than as current income). Eligible land was land on which an eligible crop of grain was grown in 1994 and summer fallow land on which eligible crop was grown in 1993. Eligible crops were those that were eligible for subsidies under WGTA. Payments were based on acreage of eligible land, productivity factor, distance factor and provincial allocation factor. Tax concession calculated as the difference between the effective value (C$2.2 billion) and C$1.6 billion, counted as "capital payment benefit". Allocated to crops in proportion to seeded acreage (1991 census).

Arable Acres Supplementary Payment Program (1996) -- Government expenditure on a one-time payment to landowners who grew crops that were not eligible for the WGTPP above, plus estimated fiscal benefit (tax concession) on this payment (as for the WGTPP above). The payment was provided at a flat rate per acre for three types of land (C$9.56 per acre for irrigated arable land, C$6.50 per acre for dryland arable land, and C$3.71 per acre for improved pasture. Tax concession is estimated as 37.5 per cent of the payment. Allocated to crops ineligible for WGTA in proportion to Alberta acreage shares.

Western Grain Transportation Adjustment Fund (WGTA) - Freight Cost Pooling Assistance Program, Phase II (1996): In Eastern Saskatchewan, C$27 million was paid to eligible farmers, based on deliveries of wheat and barley to the Canadian Wheat Board during the previous crop year (1995/96). In Manitoba, C$22 million was paid out to eligible producers based upon gross sales of wheat and barley, reported for the 1995 tax year. A further C$11 million in Manitoba was paid to eligible producers of all commodities (including wheat and barley) based on gross sales reported for the 1995 tax year. It was allocated among commodities using farm cash receipts data for that province. [Phase I of this programme is classified in B.1].

Canada-Saskatchewan and Canada-Manitoba Adjustment Programs (C-SAP and C-MAP) (2000): Government budgetary expenditures (40% provincial-60% federal) on payments based on a percentage of the first C$125 000 of producers’ historical sales of WGTA-eligible commodities during the 1994-98 period. Allocated among crops using farm cash receipts data for Saskatchewan and Manitoba over 1994-98.

Alberta’s Farm Income Assistance Program (FIAP) 2000 and 2001: Provincial budgetary expenditures on initial and supplement payments based on area seeded in previous year and on payments to arable land not actually seeded. There is no obligation to produce or plant anything after the base year. The initial and supplement payments are allocated among crops using previous year seeded areas of crops in Alberta. Payments for tame hay/seeded pasture acreage are allocated to ruminant industries (milk, beef and sheep) using farm cash receipts data in previous year. Payments for non-seeded hay/pasture acreage is allocated to ruminants using farm cash receipts data in current year.

Edible Horticulture, Grain and Oilseed Payments (Ontario): Federal expenditures on a one-time payment announced after the beginning of the 2001 crop year. For crops, it is implemented in a similar manner to the Market Revenue Program [C.1] but the payment is based on the spread from 90% to 94% of the indexed moving average price for the crop year 2000. It is allocated to the various grain and oilseed crops using administrative data. For horticultural commodities, the payment is based on a percentage of producers' historical net sales of eligible commodities during the 1995-99 period.

Grain Stabilization Payment (Ontario): Provincial expenditures matching federal expenditures on the above payment for crops. It is implemented in a similar manner to the Market Revenue Program [C.1] but the payment is based on the spread from 85% to 90% of the indexed moving average price for the crop year 2000. It is allocated to the various grain and oilseed crops using administrative data.

Farm Income Adjustment Program (Prince Edward Island) and Farm Income Support Program (Nova Scotia): Federal expenditures on a one-time payment announced after the beginning of the 2001 crop year. The payment is based on net sales of eligible commodities during the 1995-99 period and there is no requirement involving upcoming production. Expenditures are allocated to eligible commodities according to their share in farm cash receipts over 1995-99.

Farm Assistance Program (New Brunswick): Federal expenditures on a one-time payment announced after the beginning of the 2001 crop year. The payment is based on qualifying sales of eligible commodities in 2000 and there is no requirement involving upcoming production. Expenditures are allocated using administrative data.

Assistance Program (British Columbia): Federal expenditures on a one-time payment announced after the beginning of the 2001 crop year. There is a payment based on previous plantings and a payment based on qualifying sales of eligible commodities in the 2000 tax year. For both, there is no requirement involving upcoming production. Expenditures on the area-based payment are allocated between grain and oilseeds on the one hand, and other crops on the other hand, using administrative data. Expenditures are then allocated between individual grain and oilseeds according to the 2000 seeding areas. Expenditures on the income/sales based-payment are allocated between pork and fruits and vegetables using administrative data.

Apple Transition Payments (1996): Payments based on 1993 and 1994 production.

 

Agricultural Policy Framework Transition Payment (2002 and 2003):  CAD 600 million per year paid into producer’s NISA accounts on the basis of 1997-2002 sales.  CAD 150 million of this reserved for non-participants in NISA affected by the new program.  Payments are to cover costs of new producer obligations under the APF programs.

 

BSE Recovery Program (2003):   Federal-Provincial program to compensate producers for losses resulting from price declines for cattle subsequent to discovery of a case of BSE in Canada.  Producers who sell cattle who were already on feed before May 20 2003 are eligible. Payment is calculated by multiplying the total net live weight sold by an adjusted Market Loss Differential based on the US cash spot Market and current Canadian Exchange Rates.

Transitional Industry Support Program (2004):  Provides payments of up to CAD 80 (USD 60) per head per eligible bovine animal on inventory as of 23 December 2003.to cattle producers who faced a prolonged closure of the Canada-US border resulting from the discovery of BSE in the Canadian herd. This support is also available for producers of other ruminants such as bison or elk who have lost access to the US market because of border restrictions related to BSE. The program also provided payments to producers of most commodities across Canada. The funding was delivered as a direct payment to these producers based on a five-year average of past income. The former aspect of the program is classified as a historical entitlement payment allocated to beef, and the latter as a payment based on farm income allocated to all commodities. (cross-reference below)

 

2. Based on historical support programmes

E. Payments based on input use

1. Based on use of variable inputs

Freight assistance: Federal government expenditure to reduce transport costs through payments to railways to improve boxcars and railroad beds (Subsidiary Agreements to Economic and Regional Agreements in Manitoba) (Rehabilitation of box cars); and to the Canadian Wheat Board for the purchase and/or leasing of hopper cars to transport grain (Payments to CWB for hopper cars). Allocated in proportion to farm cash receipts of crops in four western provinces.

Feed freight assistance: Federal government programme to reduce transport costs of feed for feed-deficit areas (livestock). Allocated in proportion of livestock cash receipts in six provinces.

Canadian Crop Drought Assistance Program (CCDAP, 1988 and 2003, Greenfeed): Payments per acre of crop harvested as greenfeed, assumed to accrue to beef producers only.

Fuel tax expenditures: Federal tax rebates and exemptions, calculated as the rate of rebate or refund times quantity of fuel. Provincial tax concessions are also included, measuring government expenditures. Allocated to all commodities in proportion to farm cash receipts.

Provincial financing assistance: One-third of provincial government expenditures on interest subsidies, loan defaults, and other credit programmes to farmers, allocated to all commodities in proportion to their farm cash receipts. [The other two-thirds are considered under E.3].

Crow Benefit Offset (Alberta): Provincial government expenditures on payments to offset the cost increase incurred by livestock producers as a result of the artificially high feed grain prices resulting from subsidies under the Western Grain Transportation Act (Crow Benefit). Allocated to livestock commodities in proportion to farm cash receipts for livestock in Alberta.

Economic Recovery Assistance (Ice Storm, 1998): Mainly payments to compensate damages to inputs and equipment.

Long term adjustment in horticulture (FSAM I and II) and Horti-plus (federal contribution): Government expenditures on payments to small investment projects.

2. Based on use of on-farm services

Extension: Federal and provincial expenditures for the activities related to the provision of information, training and services directly to farmers, allocated to all commodities in proportion to farm cash receipts.

Pest and disease control: Federal and provincial expenditures delivered directly to farmers and related to animal health, veterinary services and disease control, allocated to all commodities in proportion to farm cash receipts.

3. Based on use of fixed inputs

Interest concessions:

-- FILA/FIMCLA: Payments to lenders on defaulted loans (net of user fees) under the loan guarantee programme for intermediate term credit. Allocated to all commodities in proportion to farm cash receipts.

-- Interest rebates (1982-86): Federal government expenditure on interest concessions to farmers under the Farm Loans Interest Rebates Act. Allocated to all commodities in proportion to farm cash receipts.

-- Farm Debt Review Process: Budgetary expenditure on government contributions to cover the arrangements between producers and the Farm Credit Corporation pursuant to the Farm Debt Review Act. Allocated to all commodities in proportion to farm cash receipts.

Provincial financing assistance: Two-thirds of provincial government expenditures on interest subsidies, loan defaults, and other credit programmes to farmers, allocated to all commodities in proportion to farm cash receipts. [The other third is considered under E.1].

Property tax exemptions: Provincial government expenditures in the form of tax exemptions on property. Allocated to all commodities in proportion to farm cash receipts.

F. Payments based on input constraints

1. Based on constraints on variable inputs

2. Based on constraints on fixed inputs

Grape and Wine Adjustment Programs and Tobacco Adjustment Programs: Government expenditure on payments for acreage reduction.

 

Greencover Canada (2003):  Payments for the conversion of land to permanent cover.

3. Based on constraints on a set of inputs

G. Payments based on overall farming income

1. Based on farm income level

Net Income Stabilization Account (NISA) (1990-2002): Federal and provincial expenditures on the voluntary farm income safety-net scheme, under which farmers set aside money in individual accounts, matched by government contributions. Farmers can make withdrawals from the account when the gross margin of the farm (gross revenue less cash costs) for eligible commodities (all commodities except supply-managed commodities) falls below the average gross margin of the preceding five years or when their taxable household income falls below a fixed level. Allocated by province to eligible commodities, in proportion to their province-specific farm cash receipts.

Agricultural Income Disaster Assistance Programme (AIDA) ( tax years 1998 and 1999) / Canadian Farm Income Program (CFIP) (from 2000): Federal and provincial government expenditures on payments to farmers made when whole farm gross margin falls below 70 per cent of the average of the previous three years’ gross margins. Allocated in each province to all commodities (except supply managed commodities for the purpose of this calculation) in proportion to farm cash receipts.

Farm Income Disaster Program in Alberta: Government expenditures on payments to farmers made when current year programme margin falls below 70 per cent of the average of the previous three years’ programme margins. Programme margin is the difference between overall farm revenue and expenses. Allocated to all commodities (except supply managed commodities for the purpose of this calculation) in proportion to farm cash receipts in Alberta.

Prince Edward Island Agricultural Disaster Programme (PEI-ADP): Government expenditures on payments to farmers made when current year programme margin falls below 70 per cent of the average of the previous three years’ programme margins. Programme margin is the difference between overall farm revenue and expenses. Allocated to all commodities (except supply managed commodities for the purpose of this calculation) in proportion to farm cash receipts in Prince Edward Island. In 1996 and 1997 tax years, it is counted as a separate programme. Starting from tax year 1998, it is the provincial component of AIDA/CFIP and counted under that programme.

Whole Farm Disaster Pilot Program in British Columbia: See PEI-ADIP.

 

Canadian Agricultural Income Stabilisation Programme (CAIS) (from 2003):  Successor program to NISA.  Program insures a reference margin calculated (using tax data) for a five-year reference period.  Producers choose a level of coverage between 70 and 92% of this margin and must keep an appropriate amount of funds in a CAIS program account to cover co-payment of this coverage.  In years where the producer’s program year margin falls below the reference margin coverage percentage, producers may withdraw money from the CAIS program account to make up the shortfall, with government contributions covering between 50 and 80% of the withdrawal amount.  Allocated to all commodities (program parameters are a bit different for supply-managed commodities, which have historically been excluded from budgetary program payments).

 

Transitional Industry Support Program (2004):  Provides payments of up to CAD 80 (USD 60) per head per eligible bovine animal on inventory as of 23 December 2003.to cattle producers who faced a prolonged closure of the Canada-US border resulting from the discovery of BSE in the Canadian herd. This support is also available for producers of other ruminants such as bison or elk who have lost access to the US market because of border restrictions related to BSE. The program also provided payments to producers of most commodities across Canada. The funding was delivered as a direct payment to these producers based on a five-year average of past income. The former aspect of the program is classified as a historical entitlement payment allocated to beef, and the latter as a payment based on farm income allocated to all commodities.

 

2. Based on established minimum income

H. Miscellaneous payments

1. National payments

2. Sub-national payments

Provincial expenditure on payments to farmers not included above, calculated as residual, allocated to all commodities in proportion of farm cash receipts.

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

Federal Research: Federal expenditures on research (operating and capital), grants and contributions for research educational institutions including a proportion of expenditures, which varies from year to year, under the National Tripartite Transition Fund (beef, from 1995) (also called "Beef Industry Development Fund") [The other half is considered under M. ‘Marketing and promotion'].

Feed Freight Assistance Adjustment Fund (FFAAF; from 1995): Half of government expenditures to province-specific farm organisations that develop initiatives to help farmers adapt to the new economic environment without feed freight assistance programme. [The other half is considered under M. ‘Marketing and promotion'].

Provincial Research: Expenditures on research (operating and capital), grants and contributions for research financed by provincial governments.

J. Agricultural schools

Federal: Expenditures on grants to educational institutions.

Provincial: Expenditures on grants to educational institutions. Also expenditures for activities related to the provision of information, training and services, coded by Government Expenditures project as beyond the farm gate.

K. Inspection services

Federal: Expenditures (net of cost recovery) on food inspection and control services (operating and capital), and grants and contribution for animal health, veterinary services, product testing, disease control, and food quality, coded by Government Expenditures project as beyond the farm gate, including expenditures by the Canadian Grain Commission (net of cost recovery).

Provincial: Expenditures (net of cost recovery) on food inspection and control services (operating and capital), and grants and contribution for animal health, veterinary services, product testing, disease control, and food quality, coded by Government Expenditures project as beyond the farm gate.

L. Infrastructure

Federal: Expenditures on Regional and Industrial Economic Development and certain environment related expenditures, including expenditures (net of cost recovery) by the Prairie Farm Rehabilitation Administration and Market and Industry Services Branch of Agriculture and Agri-Food Canada.

Dehydrated Alfalfa and Compressed Hay Assistance Program (DACHAP): Part of Western Grain Transportation Adjustment Fund (WGTAF) to ease adjustment of alfalfa dehydration and compressed hay processors.

Provincial: Expenditures on rural and regional development and certain environment related expenditures.

M. Marketing and promotion

International Development and Food Aid Programmes: Grants and contributions for activities for food aid assistance, including the forgiveness of food aid debts owed by developing countries and negotiated through the Canadian International Development Agency (CIDA). Support to international agricultural organisations is excluded.

Federal expenditures on product promotion and development of new markets, including debt service reduction and/or reduction of the debt owed to the Canadian Wheat Board (losses on export credits).

Beef Industry Development Fund (also called "National Tripartite Transition Fund" (beef, from 1995): Half of the expenditures of the Beef Industry Development Fund. [The other half is considered in I. ‘Research and development'].

Commodity Specific Development Funds (Alberta, beef, hogs and sugar beet, from 1996).

Feed Freight Assistance Adjustment Fund (FFAAF; from 1995): Half of government contribution to this fund. [The other half is considered in I. ‘Research and development'].

Provincial expenditures on product promotion and development of new markets.

N. Public stockholding

O. Miscellaneous

1. National expenditure

2. Sub-national expenditure

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

Agricultural Products Board (APB): Budget expenditures covering losses incurred by the APB while buying and selling grapes and maple syrup.

Price Pooling Program (PPP) (under the Agricultural Marketing Programs Act): Government expenditures on payments to certain co-operatives (including tree fruit) offering price guarantees to farmers (Formerly known as the Agricultural Product Co-operative Marketing Act (APCMA)).

Pool deficit: Federal government expenditures on guarantees offered to deficits in Canadian Wheat Board Pool Accounts resulting from market returns lower than initial payments to producers. Data available by commodity.

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)]

Source:

Information provided by Agriculture and Agri-Food Canada.

Table 3. Producer Support Estimate by commodity

 

Definitions and Sources: see Tables 1 and 2 above.