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IDBx: IDB13.1x AGRIMONITOR: Agricultural Policy in Latin America and the Caribbean

Glossary

General Information

*Information taken from the Organization for Economic Co-operation and Development documents "Overview of the OECD Indicators of Agricultural Support" and OECD’s "Agricultural Policy Monitoring and Evaluation" readings.

  • Producer Support Estimate (PSE) methodology: Tool developed by Organization for Economic Cooperation and Development (OECD), “in order to monitor and evaluate developments in agricultural policy, to establish a common base for policy dialogue among countries, and to provide economic data to assess the effectiveness and efficiency of policies”.
  • Support: “Support” is understood as gross transfers to agriculture from consumers and taxpayers, arising from governments’ policies that support agriculture. In addition to budgetary expenditures, support includes other estimated transfers, which do not require actual monetary disbursements (e.g. credit concessions).
  • Indicator: The indicators reflect the provision of support, or the level of effort made by governments, as implied by their agricultural policies. As such, they are not intended to and do not measure policy impacts on production, farm incomes, consumption, trade or environment.

INDICATORS OF TOTAL SUPPORT TO AGRICULTURE

  • Total Support Estimate (TSE): The annual monetary value of all gross transfers from taxpayers and consumers arising from policy measures that support agriculture, net of associated budgetary receipts, regardless of their objectives and impacts on farm production and income, or consumption of farm products.
  • Percentage TSE (%TSE): TSE as a share of GDP.

INDICATORS OF SUPPORT TO PRODUCERS

  • Producer Support Estimate (PSE): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm-gate level, arising from policy measures that support agriculture, regardless of their nature, objectives or impacts on farm production or income.
  • Percentage PSE (%PSE): PSE as a share of gross farm receipts (including support).
  • Market Price Support (MPS): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers arising from policy measures that create a gap between domestic market prices and border prices of a specific agricultural commodity, measured at the farm gate level. MPS is also available by commodity.
  • Producer Nominal Assistance Coefficient (producer NAC): the ratio between the value of gross farm receipts (including support) and gross farm receipts valued at border prices (measured at farm gate).
  • Producer Nominal Protection Coefficient (producer NPC): the ratio between the average price received by producers at farm gate (including payments per tonne of current output), and the border price (measured at farm gate).
  • Producer Single Commodity Transfers (producer SCT): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from policy measures directly linked to the production of a single commodity such that the producer must produce the designated commodity in order to receive the transfer.
  • Producer Percentage Single Commodity Transfers (producer %SCT): The commodity SCT as a share of gross farm receipts for the specific commodity.
  • Group Commodity Transfers (GCT): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from policy measures whose payments are made on the basis that one or more of a designated list of commodities is produced, i.e. a producer may produce from a set of allowable commodities and receive a transfer that does not vary with respect to this decision.
  • All Commodity Transfers (ACT): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from policy measures that place no restrictions on the commodity produced but require the recipient to produce some commodity of their choice.
  • Other Transfers to Producers (OTP): The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from policy measures that do not require any commodity production at all.

INDICATORS OF SUPPORT TO GENERAL SERVICES FOR AGRICULTURE

  • General Services Support Estimate (GSSE): The annual monetary value of gross transfers arising from policy measures that create enabling conditions for the primary agricultural sector through development of private or public services, and through institutions and infrastructures regardless of their objectives and impacts on farm production and income, or consumption of farm products. It includes policies where primary agriculture is the main beneficiary, but does not include any payments to individual producers. GSSE transfers do not directly alter producer receipts, costs or consumption expenditures.
  • Percentage GSSE (%GSSE): GSSE as a share of Total Support Estimate (TSE).

INDICATORS OF SUPPORT TO CONSUMERS

  • Consumer Support Estimate (CSE): The annual monetary value of gross transfers from (to) consumers of agricultural commodities, measured at the farm gate level, arising from policy measures that support agriculture, regardless of their nature, objectives or impacts on consumption of farm products.
  • Percentage CSE (%CSE): CSE as a share of consumption expenditure (measured at farm gate) net of taxpayer transfers to consumers.
  • Consumer Nominal Assistance Coefficient (consumer NAC): The ratio between the value of consumption expenditure on agricultural commodities (at farm gate) and that valued at border prices (measured at farm gate).
  • Consumer Nominal Protection Coefficient (consumer NPC): The ratio between the average price paid by consumers (at farm gate) and the border price (measured at farm gate).
  • Consumer Single Commodity Transfers (consumer SCT): The annual monetary value of gross transfers from (to) consumers of agricultural commodities, measured at the farm gate level, arising from policy measures directly linked to the production of a single commodity