Agricultural Policy Monitoring and Evaluation 2011: OECD by OECD

By OECD

For the 1st time, the tracking and assessment record of agricultural rules covers OECD member nations (including the hot individuals who joined in the course of 2010 Chile, Estonia, Israel and Slovenia) and chosen key rising economies: Brazil, China, Russia, South Africa and Ukraine. This version exhibits that, after a rise in 2009, manufacturer help within the OECD quarter declined in 2010, confirming the downward development in help to farmers. the fad in rising economies exhibits a few elevate within the point of aid, even though it remains good lower than the OECD ordinary. This record is a distinct resource of up to date estimates of help to agriculture and is complemented through person chapters on agricultural coverage advancements in all nations coated within the record. facts for the calculations of aid can be found on-line www.oecd.org/agriculture/PSET

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Poor infrastructure, high transport costs, absence of credit or insurance markets may compound the initial difficulty. Food price volatility has repercussions at the macroeconomic level, as well as on the level of individual consumers and farmers. At the macroeconomic level, it is useful to distinguish between importing and exporting countries. For exporting countries heavily dependent on agricultural commodities, exceptionally low prices will have immediate balance of payments impacts, but beyond that, uncertainty may curtail investment and affect capacity utilization.

Normal variations in production and prices do not require any policy response and should be directly managed by farmers. Infrequent catastrophic events are beyond the capacity of farmers and thus require government involvement. Intermediate risks can be handled through market tools, such as insurance or futures markets. Government policies should offer assistance in the catastrophic risk layer but they should not have such a role for risks that fall within the normal and marketable layers. Fully private insurance only covers limited risks in most countries.

In Canada, the implementation of the Growing Forward framework began in 2009. Major support policies are delivered through the business risk management (BRM) heading of bilateral agreements between the Federal and Provincial/Territorial governments on programme details and funding. The four BRM programs are AgriInvest, which subsidises farm savings; AgriStability, which provides some support for income declines; AgriInsurance provides insurance against natural perils; and AgriRecovery for ad hoc disaster assistance.

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