OECD Food, Agriculture and Fisheries Papers

ISSN: 
1815-6797 (online)
DOI: 
10.1787/18156797
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Selected studies on various food, agriculture and fisheries issues from the OECD Trade and Agriculture Directorate.

NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.

 

Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain

Implications for Agricultural Markets and Farm Incomes You or your institution have access to this content

English
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Author(s):
Martin von Lampe1, Aikaterini Kavallari2, Heleen Bartelings2, Hans van Meijl2, Martin Banse3, Joanna Ilicic-Komorowska1, Franziska Junker1, Frank van Tongeren1
Author Affiliations
  • 1: OECD, France

  • 2: LEI-WUR, Netherlands

  • 3: Thünen Institute of Market Analysis, Germany

28 Nov 2014
Bibliographic information
No.:
69
Pages
81
DOI: 
10.1787/5jxsr7tt3qf4-en

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This report analyses policies along the agricultural supply chain, in particular support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and Biofuel Support Policies Database that covers polices in 48 countries (including the EU and its Members) and assesses the market effects of these policies with a computable general equilibrium model, MAGNET. This report finds that biofuel support policies generate additional demand for feedstock commodities and, therefore, higher incomes for crop farmers in subsidising and non-subsidising countries. In contrast, these policies increase costs to downstream industries, including livestock farmers, and to consumers. Fertiliser support policies reduce crop production costs and hence increase yields, production and incomes for crop farmers in subsidising countries. However, they lower crop farm incomes abroad, while livestock farmers in both country groups face lower feed costs and, in consequence, lower livestock prices.
Keywords:
farm incomes, energy prices, biofuel markets, fertiliser markets, agricultural markets, fertiliser support policies, quantitative analysis, agriculture, land use, biofuel support policies, computable general equilibrium model
JEL Classification:
  • D58: Microeconomics / General Equilibrium and Disequilibrium / Computable and Other Applied General Equilibrium Models
  • O13: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Agriculture; Natural Resources; Energy; Environment; Other Primary Products
  • Q11: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Aggregate Supply and Demand Analysis; Prices
  • Q17: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agriculture in International Trade
  • Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy
  • Q42: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Alternative Energy Sources
 
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