MEXICO: ESTIMATES OF SUPPORT TO AGRICULTURE

 

Contact person: Jesús Antón

Email: jesus.anton@oecd.org

Tel :

(33-1) 45 24 17 86

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. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities.

 

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are only calculated 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, poultrymeat, sheepmeat, 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. Market Price Support (MPS is also calculated for beans (Frijol), tomatoes and coffee (café verde) in order to reduce the error in extrapolating MPS to all agricultural commodities. 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 Estimate (PSE) by commodity in Table 3 is also calculated only for commodities produced in the country within the common set of commodities. 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].

 

Fiscal year: Calendar year.

Crop years: Each crop year covers two crop seasons. For example crop seasons Autumn-Winter (AW) 1993/94 and Spring-Summer (SS) 1994/94, of the crop year 1993/94, are attributed to year 1994 for PSE calculation purposes.

 

Table 1. MEXICO: 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 common 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 common commodities according to their share in the total value of agricultural production [ (II.1) / (I.1) x 100] .

1. Of which common commodities: Sum of the value of consumption (at farm gate prices) of the common commodities produced in the country 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 common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100] .

1. Of which common commodities: Sum of the MPS (net of price levies and excess feed cost) for the common commodities produced in the country as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

ASERCA marketing payments: Per-tonne payment provided by ASERCA (Support Services for Agricultural Marketing) to domestic rice producers and -since 2001- to producers of maize, wheat sorghum, barley, canola copra, peanuts, cotton and safflower, for given domestic produced quantities in some States. Payments are set at the same level across the country. Calculated on a crop year basis and allocated to rice.

ALLIANZA FONDO DEL CAFE: It provides payments to producers based on a target price system, up to a maximum of USD 200 per tonne on a maximum 2 tonnes per hectare.

2. Based on limited output

PACE payments: Per-tonne payment provided through the PACE (Programme to Support the Marketing in Ejidos) by CONASUPO (National Basic Foods Company) to ejidatarios producing maize and beans in non irrigated areas (up to 50 tonnes per producer), to help them pack, transport and sell their crops to CONASUPO stores. This programme was discontinued in 1996. Calculated on a crop year basis and allocated to maize and beans.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Disaster payments: Budgetary expenditure on food assistance provided by CONASUPO (National Basic Foods Company), and since 1996 by SAGAR (Agricultural Ministry) and the states, to producers of specific crops that have been affected by climatic hazard, paid per ha and based on loss of output. Calculated on a fiscal year basis and allocated to all crops according to their share in the value of crop production. Since 2003, PIASRE ( Programa integral de Agricultura sostenible y Recoversion Productiva en zonas de siniestralidad recurrente) provides payments per hectare or per head triggered by meteorological disasters, it is allocated to all commodities according to their share on the value of production.

PROGAN: Since 2003, PROGAN allocates payments per cow allocated to beef and milk according to their value of production.

2. Based on limited area or animal numbers

Payments for soybeans [1] (oleaginosas): Per hectare payment for soybeans producers to help them purchase seeds. Calculated on a fiscal year basis and allocated to soyabeans.

Fruit production [1] (fomento fruticola): Payments based on area planted with a limit per farmer with the objective of purchasing inputs. Calculated on a fiscal year basis and allocated to fruits.

Payments for strategic crops [1](cultivos estratégicos): Payments per hectare to help growers to purchase plants of fruits, flowers, and industrial crops to take advantage of agroclimatic conditions in Michoacán. Calculated on a fiscal year basis and allocated to fruits, flowers, and industrial crops. [More information is needed on the implementation of this programme].

Payments for citrus [1] (programa de cítricos): Per hectare payment for citrus producers in Yucatán and San Luís Potosí to help them improve pest management in their farms. Calculated on a fiscal year basis and allocated to citrus.

Coffee program [1] (programa del café): Payment per hectare to coffee producers to alleviate poverty in indigenous communities, with a limit per farm, for farm improvements, pest control, technology transfer and extension. Calculated on a fiscal year basis and allocated to coffee.

Payments for hule [1] (programa del Hule-apoyo directo): Per hectare payment for the first three years of production for small rubber plantations in poor rura communities. Calculated on a fiscal year basis and allocated to Hule.

Payments for cocoa [1] (cacao): Payments per hectare with a limit of five hectares per producer in Oxaca, Chiapas, Guerrero and Tabasco. Calculated on a fiscal year basis and allocated to cocoa.

Payments for cotton [1] (apoyo al algodon): Payments per hectare with a limit of five hectares per producer. Calculated on a fiscal year basis and allocated to cotton.

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production

PROCAMPO payments: Per hectare payment to farmers through the PROCAMPO (Programme of Direct Support to the Countryside) based on areas that were planted in the three years prior to the spring/summer 1993 growing season with maize, beans, wheat, sorghum, rice, soyabeans, safflower, cotton or barley. The rate of payment is the same for all eligible producers who can devote land to any agricultural or forestry activity, or place it in an approved environmental programme. Calculated on a crop year basis and allocated to the areas that were planted with the above crops.

Basic Crops [1] (fomento de cultivos basicos). A program in ALIANZA with similar requirements than Procampo payments and treated similarly.

2. Based on historical support programmes

E. Payments based on input use

1. Based on use of variable inputs

Energy payments: Tax concessions on energy use consisting of a partial refund to farmers of a special tax on diesel fuel. Calculated on a fiscal year basis and allocated to all commodities according to their share in the value of agricultural production. [No data available]. Since 2003, the diesel programme gives payments to reduce the price of diesel used in agricultural activities. It is allocated to all commodities according to their share on the value of production. Since 2003, the electricity programme provides payments to reduce the price of electricity used in agricultural activities. It is allocated to all commodities according to their share on the value of production.

Seed payments: Budget expenditure to promote the use of improved seeds. Until 1991, government transfers to PRONASE (National Seed Production Company). Allocated to all crops according to their respective share in the total value of crop production. Since 1996, budget expenditure on the kg per kg programme[1] (kilo por kilo), the Nopal programme [1] (programa nopalero) and the masal selection programme [1] (selección masal). Allocated to maize and beans, maize, and nopal respectively.

Fertiliser payments: Until 1993, budget expenditure on FERTIMEX (Mexican Fertiliser Company) for delivery of fertilisers to the farmgate at subsidised prices, including transportation and storage costs. Allocated to all crops according to their respective share in the total value of crop production.

Fertiliser program [1] (programa de fertilizantes): Payments for the purchase of fertilisers. Allocated to all crops according to their respective share in total value of crop production.

Pesticide payments: In 1993-95, budget expenditure on ASERCA to reduce the price of pesticides to cotton producers. Allocated to cotton.

Insurance payments: Budgetary expenditure on ANAGSA (National Agricultural Insurance Company) and, since 1991, AGROASEMEX (Mexican Agricultural Insurance Company) to cover subsidised insurance premia for grains, beans, oilseeds and livestock production. Allocated to all products according to their respective share in the value of total agricultural production.

Irrigation maintenance payments: Tariff rate rebate for electricity use for groundwater pumping, plus budget expenditure on operation and maintenance of irrigation schemes. Allocated to all crops according to their respective share in the total value of crop production.

Feed payments: Budget expenditure to cover CONASUPO deficit associated with certain sales of domestic and imported feed (sorghum, maize and oilseeds, and, since 1991 and until 1998, only maize) at a price equivalent to or below the purchase price. In addition, until 1991, public expenditure on ALBAMEX (Mexican Compound Feed Company) to provide compound feed to livestock producers at subsidised prices. Allocated to all livestock products according to their respective share in total value of animal production.

Machinery payments: Until 1991, budget expenditure on SESA (Ejido Services) to rent agricultural machinery to low-income farmers at subsidised prices. Allocated to all crops according to their respective share in the total value of crop production.

Land and building tax concessions: Gross asset tax exemption for farmers whose income is below 20 times the minimum wage and 50 per cent reduction for farmers above that income. [No data available].

Value added tax concessions: VAT refund to producers for the purchase of farm inputs and the payment of services . [No data available].

Oat programme [1] (programa avenero): Payments to cover part of the price of variable inputs for oat producers. Allocated to oat.

2. Based on use of on-farm services

Extension: Budget expenditure on FEGA (Technical Assistance and Loan Guarantee Trust Fund), INCA RURAL (National Institute of Training in Rural Areas), half of the expenditure on FIRCO (Trust Fund for Shared Risk). And since 2003 on Rastros TIF programme. ALLIANZA programmes:

- INCA RURAL [1] Transfers to this institute to facilitate monitoring an d evaluation of extension programmes; allocated to all commodities according to their value of production.

- Training and extension (capacitación y extensión) and elementary technical assistance [1] (programa elemental de asistencia técnica) to finance technical assistance to producers; allocated to all crops and basic grains respectively.

- Heavy machinery maintenance [1] (recuperación y mantenimiento de maquinaria pesada and Maquinaria reconstruida) to help producers repair their heavy machinery and infrastructure in Chihuahua and Querétaro; allocated to all commodities according to their respective shares in the value of production.

- State programmes [1] on marketing and quality circles (Programas estatales de Apoyo a la comercialización & Círculos de calidad: Payments to help producers to improve the quality and marketing of their products, allocated, respectively, to all commodities according to their respective share in the value of total agricultural production, and to all livestock production.

- Mobilisation control and Regional livestock projects (control de movilizacion & desarrollo regional de proyectos agropecuarios: [1] To provide technical assistance to producers to apply livestock development projects, allocated to all livestock products according to their share in total livestock production.

- Supervision and evaluation [1]: Expenditure on supervision and evaluation of Alianza programs, allocated to all products.

- Pest and disease control [1]: Budget expenditure on plant protection (sanidad vegetal), allocated to all crops according to their respective share in total value of crop production; and to animal health (salud animal), allocated to all livestock products according to their respective share in total value of animal production.

- Payments for oil-palm [1]: Payment for oil palm producers (palma and coco) to help them purchase improved seeds and participate in pest control programmes. Calculated on a fiscal year basis and allocated to palm and coco oilseeds.

- Women in rural development [1]: Technical assistance to women willing to undertake agricultural production projects. Allocated to all agricultural production.

- Elementary Program of Technical Assistance (PEAT) [1]: Payments producers to help them purchase technical assistance. Allocated to grains.

- Genetic improvement: Until 1992, budget expenditure on FOGAN (Livestock Fund) which provided artificial insemination services and imported high quality breeding stock. Allocated to beef and veal.

- Rastros TIF programme: Since 2003, payments to incentive the slaughter of cows in certificated slaughtering houses. It is allocated to beef.

- Desarrollo de capacidades en el medio rural (PRODESCA): Since 2003, this programme finances technical assistance on production techniques and marketing.  

3. Based on use of fixed inputs

Interest concessions: Difference between the market interest rate (tasa de interes activa de mercado) and the rate actually charged to farmers by BANRURAL (National Rural Credit Bank), FIRA (Trust Fund for Agriculture), FICART, FINA, FIDAZUCAR and FIMAIA multiplied by the volume of loans outstanding, plus half of budget expenditure on FIRCO (Trust Fund for Shared Risk). For BANRURAL and FIRA, only the share of total crops and total livestock products in total lending is considered, and then allocated to all crops according to their respective share in total value of crop production and to all livestock products according to their respective share in total value of animal production. For FICART, FIRCO and PRONASOL, allocated to all commodities in proportion to their share in the value of total agricultural production. For FINA, FIDAZUCAR and FIMAIA, allocated to sugar production.

Debt write-offs: Budget expenditure on ANAGSA to cover insurance payoffs which absorbed a major share of BANRURAL bad loans. Allocated to all products according to their respective share in the value of total agricultural production. In addition, since 1991, budget expenditure on various trust funds to cover bad loans restructuring (with very favourable terms) in agriculture: FIRCAVEN (Trust Fund to Restructure the Overdue Portfolio of BANRURAL) in 1991-92; FIDELIQ (Trust Fund for the Liquidation of Auxiliary Institutions and Organisations) in 1992; SIRECA (System for the Restructuring of Agricultural Overdue Portfolio) in 1994; FINAPE (Agricultural, Livestock and Fisheries Loan Support Programme) and FOPYME (Support programme for Small and Medium-Sized Firms) since 1996. Allocated to all commodities in proportion to their share in the value of total agricultural production. [No data available on all these programmes].

Capital grants: Budget expenditure on several programs under ALIANZA:

·o  Ferti-irrigation [1] (ferti-irrigación) and Irrigation techniques [1] (Tecnificacion de la agricultura por riego con bombeo): For the purchase and installation of modern water-saving irrigation equipments to promote more efficient use of water; allocated to crops.

·o  Mechanisation [1] (mecanización) For the purchase and repair of tractors and other agricultural machinery; allocated to crops.

·o  Alternative crops [1] (cultivos alternativos) For helping to plant alternative crops.

·o  Post-harvest equipment [1] (Equipamientos post-cosecha) To share the investment cost on post-harvest equipment (grain dryers, packaging machines) in Guanajuato; allocated to all crops.

·o  Saline soil rehabilitation [1] (recuperación de suelos salinos) To purchase drainage equipment to improve the quality of saline soils in Baja California and Sonora; allocated to all crops according to their value of production.

·o  Land conservation [1] (mejoramiento y conservación de suelos) To finance soil analyses in Chiapas, Edo. De Mexico and Jalisco; allocated to all crops. [More information is needed on the implementation of this programme].

·o  Prairies improvement [1] (establecimiento de praderas) For investment on fences, drinking troughs, stables, etc.; allocated to livestock products according to their share in the total value of livestock production.

·o  Livestock improvement [1] (ganado mejor) For the purchase of quality cattle; allocated to beef and sheep-meat.

·o  Milk programme [1] (programa lechero) For investments in buildings, basic infrastructure and milking equipment for cattle; allocated to milk.

·o  Genetic improvement [1] (mejoramiento genético) For the purchase of quality males and artificial insemination for cows, sheep and goats; allocated to beef, sheep-meat and pig-meat according to their value of production.

·o  Bee keeping [1] (programa apícola) To help low income producers to purchase beehives, queen bees, and for pest control and melting machines.

·o  Livestock repopulation [1] (repoblamiento del ganado) For the purchase of good quality cows in Yucatán; allocated to beef.

·o  Pig improvement [1] (repoblamiento porcícola) For the purchase of improved strains of pigs in Yucatán; allocated to pig-meat.

·o  Productive infrastructure rehabilitation [1] (rehabilitación de infraestucturas productivas) For investment in small agro-industry equipment at the farm level; allocated to all livestock, except cattle and sheep.

·o  Poultry support [1] (fomento avicola): For investment in poultry farms, allocated to poultry.

·o  Rural equipment [1]: A set of programs to help low income farmers in poor regions to buy low cost agricultural equipment, livestock packages, technology, demonstration plots, small enterprises, family gardens, micro-projects in arid zones and micro-projects for women. Allocated to all commodities according to their value in agricultural production.

·o  Development of indigenous areas [1] (desarrollo sustentable de zonas indígenas): Payments to native Indian producers and their families for marketing infrastructure and micro-projects to alleviate poverty; allocated to all commodities.

·o  Heavy machinery (adquisición de maquinaria pesada): For purchasing heavy machines; allocated to all commodities according to their share in the value of production.

·o  Better young horses [1] (potrillo mejor): For the acquisition of good quality horses State program allocated to other livestock production.

·o  Agriculture / irrigation infrastructure [1] (infraestructura hidroagricola): For purchasing and installing small irrigation infrastructures; allocated to crops.

·o  Livestock infrastructure [1] (infraestructura agropecuaria): For purchasing and installing small infrastructure in livestock farms, allocated to all livestock production.

·o  Purchase of calves [1] (adquisición de vaquillas): For purchasing calves, allocated to beef and milk.

·o  Support to CNA programmes (Apoyo a otros programas de la CNA): Support to various programmes jointly implemented with the National Water Commission (CNA). (rehabilitation of irrigation districts, development of plots, efficient use of water and power, efficient use of infrastructure, and co-ordination of CNA programmes); allocated to all commodities.

·o  Fuerte Mayo program [1] (Desarrollo fuerte mayo): On-farm irrigation infrastructure in specific areas of the states of Sonora and Sinaloa; allocated to crops.

·o  Light machinery [1] (modulo de maquinaria para bordos); For purchasing light machinery, allocated to all commodities.

·o  Technical Improvements of Irrigation [1] (Tecnificación de la agricultura de riego por bombeo): Payments to improve irrigation infrastructure. Allocated to all crops.

·o  Basic livestock infrastructure [1] (Infraestructura básica ganadera): Payments for livestock producers to buy basic feeding infrastructure for the dry season. Allocated to all livestock products.

·o  Technical assistance to micro-credits [1] (asistencia técnica al microfinanciamiento): creation of local financing services in poor rural areas. Allocated to all agricultural products.

·o  Fund for Micro-credits for rural women [1] (FOMMUR): interest concessions for small credits for women in rural areas. Allocated to all products.   

·o  Fondo de apoyo a la competitividad (since 2003): payments for the purchase of capital inputs allocated to all commodities according to their share on the value of production.

·o  Apoyos para acceder al sistema financieto (since 2003): payments to facilitate the access of farmers to financing. It is allocated to all commodities according to their share on the value of production.

o   Fomento a la inversióon y capitalizacióon.  Since 2003, group of ALIANZA programmes that reduce the costs of investment in agriculture

 

o   Desarrollo Ganadero. Since 2003, group of ALIANZA programmes that reduce the costs of investment in the livestock sector.

 

o   Desarrollo de proyectos agropecuarions integrales.  Since 2003, payments to introduce new technology in the primary processing in livestock farms.

F. Payments based on input constraints

1. Based on constraints on variable inputs

Programa de adquisicion de derechos de uso del agua (since 2003): payments for renouncing to water rights by farmers. It is allocated to all commodities according to their share on the value of production.

2. Based on constraints on fixed inputs

3. Based on constraints on a set of inputs

G. Payments based on overall farming income

1. Based on farm income level

Income tax concessions: Income tax exemption for farmers whose income level is below 20 times the minimum wage, and 50 per cent tax concession for farmers above that income level. For farmers that do some manufacturing process, the tax concession is 25 per cent. [No data available].

2. Based on established minimum income

Programme of temporary employment in poor areas (programa de empleo temporal en zonas de extrema pobreza): Minimum wage paid to producers or workers to participate in community works in extremely poor areas during period of low agricultural activity. Allocated to all commodities.

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 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: Budget expenditure on INIFAP (National Institute for Forestry, Agricultural and Livestock Research) and IMTA (Mexican Institute of Water Technology).

Research projects: Budget expenditure on technology transfer [1] (transferencia de tecnología).

J. Agricultural schools

Budget expenditure on Agricultural Technical Institutes and Vocational Agricultural Schools.

K. Inspection services

Budget expenditure on CONASAG (National Phytosanitary and Sanitary Commission) and on quarantine control [1] (Programas estatales-Control cuarentenario). [No data available for the former]

L. Infrastructure

Public expenditure on infrastructure in rain fed areas, on rural roads and on the protection of river beds.

M. Marketing and promotion

Budget expenditure on ASERCA activities to diffuse commodity price and market information and to promote the development of regional markets, on FOCIR (Rural Sector Capitalisation and Investment Fund) since 1993, and on CONAFRUT (National Fruit Commission) until 1992.

ALIANZA programmes:

Since 1996, budgetary expenditure on the following programs was:

·o                                Studies and projects [1] (estudios y proyectos agropecuarios) To cover part of the costs of studies on technical and economic viability of projects on marketing.

o              Primary agro-industry development [1] (Desarrollo agroindustrial primario): To reduce the cost of purchasing first processing machinery and building for agro-industry. [More information is needed on the implementation of this programme].

o              Export promotion [1] (promocion de exportaciones) For promotion of quality standards, farmers'organisations and certification units.

o              Agricultural information [1] (información agropecuaria) To co-ordinate statistics of the agricultural sector.

o              Marketing support [1] (apoyo a la comercializacion): For promotion of local products in the national market and facilitating access to other programs like those by ASERCA.

o              Marketing enterprises in the social sector [1] (PROFECA): To promote associations of farmers in order to improve the marketing of grains.

Since 2003:

o               Apoyo a la Comercialización

 

o           Fortalecimiento de los sistemas producto Since 2003, group of ALIANZA programmes facilitating the participation of farmers in the marketing chain.

 

o           Fortalecimiento de empresas y organización (PROFEMOR). Since 2003, payments to facilitate the creation of firms or organizations dealing with the marketing of agricultural products.

 

o           Programa de apoyo para la integración de los mercados y fomentoa las exportaciones agroalimentiarias (PROEXIN/PROEXPORTA). Expenditure on fairs and promotion of Mexican agricultural products.

 

o           Sistema de información para desarrollo rural sustentable (SINIDRUS). Expenditure on sustaining a network of offices collecting information on local sustainable development and some related publications.

PROSAP (since 2003): support to farmers associations

PROMOAGRO / PROEXPORTA (since 2003): payments to finance campaigns and actions to facilitate exports.

N. Public stockholding

Budget expenditure to cover CONASUPO operation and maintenance costs of public stockholding estimated at 30 per cent of total budget expenditure on CONASUPO until 1995. Since 1996 BORUCONSA has played this role until it was closed in 1999.

O. Miscellaneous

1. National expenditure

Budget expenditure on CONAZA (National Commission for Arid Zones) for erosion control, drinking water supply and rural housing.

Budget expenditure on various programmes of assistance provided to poor rural famiilies by SEDESOL (Secretariat for Social development) through the National Solidarity programme until 1994 and, since 1995, the Poverty Alleviation Programme (national fund to support enterprises in solidarity, regional solidarity fund for the development of the indigenous communities).[No data available].

2. Sub-national expenditure

Rural development. From 1990 to 1994, expenditure by PRONASOL (Regional Solidarity Fund for the Development of Indigenous Communities) financed by State budgets.

 

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 common commodities according to their share in the total value of production [(P.1) / (I.1) x 100] .

1. Of which common commodities: Sum of the values of transfers from consumers to producers associated with market price support on the common commodities produced in the country 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 common commodities according to their share in the total value of production [(Q.1) / (I.1) x 100] .

1. Of which common commodities: Sum of the transfers to the budget associated with market price support on the quantities imported of the common commodities produced in the country as calculated in Table 2.

R. Transfers to consumers from taxpayers

ASERCA: Budget expenditure on per-tonne payments to wheat millers, compound feed processors, and the vegetable oil industry to help them purchase the domestic production of wheat, sorghum, soybeans and other oilseeds at concerted prices, as a way to provide support to producers. The rate of payment varies according to the States to facilitate marketing in areas distant from the main consumption centres. Calculated on a crop year basis and allocated to wheat, sorghum and soybeans.

CONASUPO: Budget expenditure to cover CONASUPO deficit associated with sales of domestic and imported foodstuff -- maize, beans, wheat, rice and oilseeds, and, from 1990 to 1998, maize and beans -- at a price equivalent to or below the purchase price, plus budget expenditure on FERRONALES (National Railway Company) associated with the transport of CONASUPO grains from producing/import areas to processing/storage places at a preferential rate. Calculated on a fiscal year basis and allocated to maize, beans, wheat, rice, and soybeans, and between 1990 and 1998 to maize and beans. [No data available on FERRONALES].

FIDELIST: Budget expenditure on FIDELIST (Trust Fund for Tortilla Subsidy Payments) to provide free one kg of maize tortillas daily to 2 million low-income families in urban areas. Calculated on a fiscal year basis and allocated to maize.

LICONSA: Budget expenditure on LICONSA (CONASUPO Industrial Milk) to sell at subsidized prices four litters of milk a week per child to 5 million children in low-income families in rural areas. Calculated on a fiscal year basis and allocated to milk.

DICONSA: Budget expenditure on DICONSA (CONASUPO Commercial Distribution and Promotion) to cover the difference between the price of maize and maize flour purchased from CONASUPO and the lower selling price to rural consumers. Calculated on a fiscal year basis and allocated to maize. [No data available].

S. Excess Feed Cost (-) [å tables 2]

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

V.3 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:

 

Secretariat of Agriculture and Rural Development (SAGAR), unpublished.

Secretariat of Agriculture and Rural Development (SAGAR), Informe de labores, Mexico, D.F.

Secretariat of Agriculture and Rural Development (SAGAR), Programas y proyectos en apoyo al campo, 1997, Mexico, D.F.

Secretariat of Finance and Public Credit (SHCP), unpublished.

Support Services for Agricultural Marketing (ASERCA), Claridades Agropecuarias.

Note:

[1]. All these programmes are part of the Alliance for Agriculture (Alianza para el Campo).

 

Table 3. Producer Support Estimate by commodity

 

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