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Agricultural Policies in OECD Countries 2008

At a Glance

image of Agricultural Policies in OECD Countries 2008

This book is a unique source of up-to-date estimates of support to agriculture. Separate chapters describe and evaluate agricultural policies in each OECD country, including such important developments as the introduction of the single-payment scheme in the EU. This edition also includes a special chapter describing the revised method of estimating support to agriculture used for the first time in this report. As always, it includes extensive statistical data on support to agriculture broken down by type of support and commodity, as well as Statlinks, URLs linking to Excel® spreadsheet versions of tables and graphs.

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Executive Summary

In 2007, support to producers in the OECD area was estimated at USD 258 billion or EUR 187 billion, as measured by the Producer Support Estimate (PSE). This is equivalent to 23% of aggregate gross receipts of OECD farm producers, down from 26% in 2006 and 28% in 2005. The fall in the level of support in 2007 was largely driven by the overall rise in world market commodity prices. With high world prices, policies to support domestic prices in the OECD countries generated smaller transfers, resulting in the overall reduction in support to producers. In a longer-term perspective, the currently observed level of producer support is the lowest since the estimates began in the mid-1980s: it came down from 37% of gross farm receipts in 1986-88 to 26% in 2005-07. In that period, the average amount by which domestic prices in OECD countries exceeded border prices more than halved – from 50% to 20%.

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