Guide To Foreign Crop Subsidies and Tariffs
CERI Staff Report
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CROP SUBSIDY TABLES
The summary tables for the
seven crops (corn, cotton, rice, sorghum, soybeans, sugar, and wheat) are
comprised of three sections. The
first two, direct support instruments and indirect support instruments, detail
some of the ways governments intervene in the agricultural sector. The third section provides production,
consumption, and trade shares of each of the countries under consideration. These statistics are an average of the
last three marketing years.
Direct support includes
commodity specific price support programs, direct payments to producers that
support whole farm income that are not tied to the production of a specific
commodity, and supply control programs aimed at controlling crop production. Import tariffs are further defined into
single rate tariffs and two-tier tariffs (tariff rate quota). Major categories of input subsidies are
included but not limited to those for fertilizer, irrigation, seed, and
electricity and fuel.
Indirect support includes
programs or industry structures that impact terms of trade but not necessarily
in ways directly linked to producers.
State trading refers to state supported single desk commodity trading. Sanitary import controls refer not to
whether a nation has a policy to limit the importation of goods under sanitary
and phytosanitary (SPS) guidelines, but refers to whether trade in a given
commodity to that country is currently restricted due to SPS measures. Long-term investment assistance refers
to governmental support given to ancillary industries (e.g. fuel ethanol). Credit subsidies may be a form of input
subsidy if they are provided for production agriculture, but they also include
credit to support marketing activities by both producers and downstream
processors and traders.
Transportation and storage subsidies refer to assistance provided to the
agricultural industry to manage and subsidize the shipment and handling of
commodities as they enter the marketing channel.
Each marker in the crop tables
is referenced in the country descriptions that follow in the next section. However, some policy tools have not
been reported in the tables.
Support for research and development, for example, has not been included
because such support is either used in some degree by all countries, is
sporadic in application, and/or cannot be separated by commodity. The same holds true for investments
that improve a nationŐs infrastructure.