1887

Farm Household Income

Issues and Policy Responses

image of Farm Household Income

In most OECD countries, farm household incomes figure prominently among the wide and growing range of concerns described as motivating policy interventions in agriculture. The first part of this report provides an overview of the income situation of farm households and examines the influence of agricultural and of tax and social security policies on them. The second part investigates more specifically how efficient some of the most commonly used policy interventions are at transferring income to farm households.

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The Incidence and Income Transfer Efficiency of Farm Support Measures

The PSE indicates the gross value of monetary transfers from consumers and taxpayers to farmers resulting from agricultural policies. The PSE can be interpreted as the additional money farmers receive in a particular year because governments intervene in agriculture. How much of this extra money should be counted as net economic benefit for the intended beneficiaries? How much of it ends up in the pockets of unintended beneficiaries and how much of it is wasted?

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