A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

There is a pressing need to reevaluate the methods and assessment scope of public support to agriculture

September 21, 2012

On September 19, the OECD launched the latest edition of its report entitled “Agricultural Policy: Monitoring and Evaluation 2012”1.

The document indicates that the Producer Support Estimate (PSE) in the various countries stays at the same ranking as it has been for several years, i.e. that support to European Union farmers is much higher than that allocated on the other side of the Atlantic.

Yet, if one includes all budgetary and extra-budgetary support, as well as direct and indirect subsidies such as impact of currency exchange fluctuations, domestic food aid or tax measures, one comes up with opposite results.

Over the five past years, the European Union has spent, on average, two times less for agriculture than the United States did.

This is one of the findings provided by the momagri-designed SGPA (Global Support to Agricultural Production) to address the need for transparency in agricultural data, as outlined by the G20 Agriculture Ministers Meeting.

In 2010 alone and by combining the overall efforts by public authorities, over $163 billion were earmarked for agriculture in the U.S. against €76 billion in the E.U., or €387 per American resident against €152 for each European resident. And this gap has not stopped growing since 2008.

Consequently, the U.S. SGPA represents 48 percent of agricultural production, against 24 percent in the European Union. We are thus quite far from the PSE figure of eight percent of subsidies in relation to U.S. agricultural production, against 18 percent for European agricultural production!

The reason for this very substantive disparity lies in the method used and the scope selected. In fact, the SGPA indicator gives a superior representation of today’s genuine agricultural policies by assessing all used support methods, such as those stimulating domestic food demand, or strengthening farmers’ competitiveness.

momagri will soon release the results of its SGPA indicator applied to the four major agricultural powers––the European Union, the United States, Brazil and China. The analysis will, beyond rankings, provide insights on the disparities regarding support procedures, and determine agricultural strategies for these key powers.

1 The document is available from: http://www.keepeek.com/oecd/media/agriculture-and-food/politiques-agricoles-suivi-et-evaluation-2012_agr_pol-2012-fr
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Paris, 25 June 2019