-
Agricultural policies in 2006 were implemented in the context of generally stronger world prices for agricultural commodities and continued US dollar weakness. On the domestic front, reform involved some further decoupling of support in the European Union through the Single Payment Scheme. Korea and Japan have both recently agreed on policy reform measures, while the United States is in the process of proposing new farm legislation to replace the current Farm Bill. Many countries are developing policies to stimulate biofuel production. Ongoing negotiations towards a Doha Development Agenda so far failed to reach agreement despite extensive talks, and the multilateral trade policy situation remained largely unchanged as a result.
-
This chapter highlights the major changes and new initiatives in agricultural policy in OECD countries in 2005 and 2006. These changes are described in detail in the country chapters of Part II. Agricultural policy developments in 2005-06 were dominated by the implementation of policy reforms decided in earlier years mainly in European Union, Japan and Korea. There was a general move towards allowing farmers more flexibility as to what they are required to produce to be eligible for support, or not to produce at all. Constraints on farming practices are becoming more frequent through more regulation and compliance conditions. Government involvement in promoting renewable energy sources from agriculture also grew.
-
This chapter evaluates changes in agricultural support in OECD countries, both in the short term (2006 compared with 2005) and over the longer term (the 2004-06 average compared with the 1986-88 base period). It first discusses the level of support provided to producers at the OECD total level and how this varies between OECD countries. Changes in the composition of support are then considered. This is important because the effects of support on production, trade, income and the environment are related to the way in and conditions under which it is delivered to producers. Finally, the chapter investigates the commodity specificity of how support is provided – to specific commodities, groups of commodities, or any (or no) commodity. Estimates are also provided on the level and composition of support to consumers and to general agricultural services and the total value of support that results from agricultural policies. Finally, some conclusions are drawn about agricultural policy reform progress being made in OECD countries in terms of lowering the level of support, shifting to less production-linked policy measures and increasing the flexibility in commodity production choices available to producers through reducing the commodity-specificity of programmes.
-
In this publication the OECD Secretariat is using for the first time the new PSE method with new classification categories and using labels providing more detailed characteristics of policies applied. This chapter provides information on the overall concept of estimation of support in agriculture and a detailed description of the new PSE classification and related indicators used in the report.
-
-
-
-
-
-
-
-
-
-
-
-
-