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Agricultural Policies in Emerging Economies 2009

Monitoring and Evaluation

image of Agricultural Policies in Emerging Economies 2009
This report analyses policy agricultural developments during 2006-08 in seven economies: Brazil, Chile, China, India, Russia, South Africa and Ukraine. This period was marked by a significant increase in world prices for most, but not all, agricultural commodities. Policy responses to rising food prices included tariff reductions, export restrictions, increased minimum prices and price controls, input subsidies, sales of stocks and direct transfers to the most disadvantaged. Other major common policy developments included: expanded government-supported credit facilities and/or debt rescheduling, endeavours to improve the delivery and performance of agricultural policies, extended coverage of insurance programmes and further efforts in land reform. A comprehensive statistical annex containing a wide range of contextual information for these economies is also included in this report.

Estimates of support to agriculture in six economies (India is not yet covered) from 1995 to 2007 are provided, in conformance with recent changes to the OECD measurement methodology. This allows a consistent comparison across emerging economies and with OECD countries in terms of changes in the level and composition of support to producers and the sector as a whole.

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Brazil

Brazil provides a relatively low level of support and protection to agriculture, reflecting its position as a competitive exporter and a relatively open trade policy. While increasing in nominal terms, the level of producer support has been relatively constant at 5% of gross farm receipts since 2000, with producer prices on average only 3% above world prices. ?

Nevertheless, there is a wide range and growing number of agricultural policy measures. Price supports have been used extensively, in principle to offer price stability (minimum guarantee prices are set at low levels) and to provide localised support to smaller “family” farmers. There is also heavy state intervention in the credit system, both creating access to credit and rescheduling debt commitments.

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