By Organization for Economic Co-operation and Development

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For 1986-88, the Czech Republic, Hungary, Poland and the Slovak Republic are excluded. Notes: Countries are ranked according to 2000-2002 levels. 3. org/agr/policy). 5. 5 1. For the Czech Republic, Hungary, Poland and the Slovak Republic, the reference years are 1991-93. 2. For 1986-88, the Czech Republic, Hungary, Poland and the Slovak Republic are excluded. Notes: Countries are ranked according to 2000-2002 levels. 3. org/agr/policy). 6. Consumer Support Estimate by country (Percentage of consumption expenditure at farm gate) 1986-88 2000-02 % 30 20 10 0 -10 -20 -30 -40 -50 -60 -70 es St at lia ra d ite Un nd Ze st ala ak w Ne Au ia 1 d1 da lan ov Sl Po na y Ca ke ic 1 bl pu Re h ec Tu r ico y1 ar ng Hu ex 2 CD n OE M Cz ro pe an Un io nd ela ay Ic rw pa n No Ja Eu Sw itz er Ko re lan a d -80 1.

A new Grassland Reserve Program (GRP), covering up to 810 000 hectares and funded at USD 254 million for 2003-07, is created to provide annual payments to assist landowners to restore and conserve grassland. Funding provisions for research are extended to 2007, replacing dollar amounts with “such sums as are necessary to carry out” the research. Annual funding for the Initiative for Future Agriculture and Food Systems is increased from USD 120 million in 1998-2004 to USD 200 million in 2007 and each year thereafter, for agricultural research, education, and extension, and includes funding for biosecurity, biotechnology, environment and organic agriculture.

However, some provide ad hoc counter-cyclical support. Reducing farming risk through support measures creates incentives to produce that reduce the degree of decoupling of the corresponding PSE measures (OECD, 2001a and 2002a). Therefore, reducing risk through general support measures can create additional inefficiencies. 1. Wheat and coarse grains received market price support in Canada only until 1994. Thus, these conclusions do not apply to current policies. based on area/animal numbers potentially more production distorting than payments based on historical entitlements, although both forms of support are less distorting than output and input-linked support.

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