Agricultural Policy Monitoring and Evaluation 2011: OECD by OECD

By OECD

For the 1st time, the tracking and evaluate file of agricultural regulations covers OECD member nations (including the recent 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 aid within the OECD zone declined in 2010, confirming the downward pattern in aid to farmers. the rage in rising economies indicates a few raise within the point of help, even though it remains good under the OECD regular. This record is a distinct resource of up to date estimates of aid to agriculture and is complemented by means of 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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Investing in enhanced productivity on the farm and in downstream industries, investing in infrastructure and institutions that support more efficient markets and avoiding trade restrictions that hamper international markets to fulfil their roles are all part of policy packages that would reduce food price volatility on domestic and international markets. Improved market transparency and information could also help to curb volatility when it is caused by incomplete or incorrect information. 2). In the long run, it is development and income growth which will provide the most vulnerable with the means of escape from the worst consequences of volatility.

After a gradual build-up since 2008, global grain stocks are declining, especially maize, which contributes to expectations of rising prices. A drought in China has affected wheat production areas, leading to expectations of increased import demand during 2011 and consequent upward pressure on world prices. Restrictions on the export of wheat maintained by Russia and Ukraine amidst high world prices further contributed to rising world prices. 2. 1. Why does price volatility matter? Most agricultural commodity markets are characterised by price volatility.

This is an effort to shift away from ad hoc disaster assistance by making all support payments conditional on producers being covered by catastrophic insurance. Heavy market interventions dominate the policy mix in some countries… In the long run, a gradual reduction of market price support can be observed across the OECD area, although in some cases production and trade distorting policies still dominate the policy mix. To support domestic producer prices, governments intervene in markets through various domestic and border policy instruments.

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