For the 1st time, the tracking and assessment file of agricultural rules covers OECD member nations (including the recent participants 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 variation exhibits that, after a rise in 2009, manufacturer aid within the OECD quarter declined in 2010, confirming the downward development in help to farmers. the fad in rising economies indicates a few bring up within the point of help, even though it remains good under the OECD common. This file is a special resource of up to date estimates of help to agriculture and is complemented via person chapters on agricultural coverage advancements in all international locations lined within the document. info for the calculations of aid can be found on-line www.oecd.org/agriculture/PSET
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Extra info for Agricultural Policy Monitoring and Evaluation 2011: OECD Countries and Emerging Economies
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. Importing countries, especially low-income food-importing countries, faced with exceptionally high prices may also experience deterioration in the balance of payments and deterioration in their public finances.
In Canada, previous ad hoc disaster payments have become institutionalized and grouped under programmes under the AgriRecovey framework. Korea has extended the coverage of insurance schemes against natural disaster and the United States has improved overall coherence in disaster assistance, with clearer ex ante rules for conditions of payment. Russia spent large amounts on exceptional assistance in 2009-10 following the combined impact of the financial crisis, which led to a disruption of cash flows in agricultural enterprises, retailers and processors, and droughts in 2009 and 2010.
For example, Australia’s Exceptional Circumstances declarations have been issued with increasing frequency, and Spain often offers ad hoc assistance beyond subsidized insurance indemnities. Normal and marketable risks can be managed at the farm level and through market tools. Price support, income stabilisation and counter-cyclical payments are often used to mitigate these risks, but they crowd out farmers’ own risk management strategies, discouraging diversification of production and income sources as well as the use of market tools.