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Agricultural Policy Monitoring and Evaluation 2018

image of Agricultural Policy Monitoring and Evaluation 2018

This report is the 31st in the series of OECD reports that monitor and evaluate agricultural policies across countries, and the 6th report to include all 35 OECD countries, the 6 non-OECD EU Member States and a set of emerging economies: Brazil, the People’s Republic of China, Colombia, Costa Rica, Kazakhstan, the Philippines, the Russian Federation, South Africa, Ukraine and Viet Nam. This annual report is a unique source of up-to-date estimates of support to agriculture and uses a comprehensive system of measuring and classifying support to agriculture – the Producer and Consumer Support Estimates (PSEs and CSEs), the General Services Support Estimate (GSSE) and related indicators. These estimates provide insight into the increasingly complex nature of agricultural policy and serve as a basis for OECD’s agricultural policy monitoring and evaluation. Detailed data and documentation for the calculation of support are available on line www.oecd.org/agriculture/PSE.

Comprehensive country chapters and the Statistical Annex containing detailed background tables with indicators of agricultural support are available in electronic form at the publication website http://dx.doi.org/10.1787/agr_pol-2018-en.

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Viet Nam

The level of support provided to Viet Nam’s agriculture sector fluctuates at very low levels, largely driven by changes in market price support (MPS). Producer support as a share of receipts varies across commodities. While producers of import-competing commodities, such as maize, sugar cane and beef, benefit from tariff protection, producers of several exported commodities are implicitly taxed. This results in a negative overall producer support estimate (PSE) in some years. Budgetary transfers are relatively small and include payments based on variable input use, primarily expenditure to subsidise an irrigation fee exemption, and direct payments to rice producers that are tied to maintaining land in rice production. Rice producers also benefit from a price support system based on target prices designed to provide farmers with a profit of 30% above production cost. In some years this price support system results in implicit taxation of rice producers when domestic prices are below international levels.

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