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The share of STC in total PSE averaged 53% in 2005-07, rising from 46% in 2005 to 63% in 2007. ● The cost to consumers, as measured by the %CSE has remained fairly stable since the year 2000 in the range of 2%-3%. ● Support provided to general services, notably infrastructure and agricultural schools, averaged 25% of total support in 2005-07, with the value of GSSE expenditure falling by 36% between 2005 and 2007. 2% in 1995-97, but less than the OECD average of 1%. Source: OECD, PSE/CSE Database, 2008.
R Trends in the level of producer support over time vary between economies. In Chile and South Africa, the level of producer support has fallen from around 10% in the mid-1990s, to 4% and 7% respectively in 2005-07. While the level of producer support in Brazil has been relatively constant at about 5% during the current decade, this represents a slight rise from the mid-1990s when policies effectively taxed the sugar cane/ethanol sector. Since the late 1990s, there has been a steady rise in producer support in China, which has stabilised at around 9% in recent years.
These actions, while benefiting farmers in the short term, discourage the development of a functioning credit market, and will lead to an increase in the level of support if market interest rates rise. ● In an attempt to deal with the problem of overdue debt, a major debt restructuring option was offered to farmers in late 2008. While the package includes discounts and reduced interest rates, so far there has been little uptake by producers. Resolving the debt issue remains a significant policy challenge.
Agricultural Policies in Emerging Economies 2009: Monitoring and Evaluation by OECD Organisation for Economic Co-operation and Development