Template-type: ReDIF-Paper 1.0 Author-Name: Stefan Tangermann Title: Is the Concept of the Producer Support Estimate in Need of Revision? Abstract: OECD’s Producer Support Estimate (PSE) is the only available source of internationally comparable information on support levels in agriculture. It attracts much attention and receives wide media coverage, not the least in reports that are critical of the way some agricultural policies are pursued. Interpretation of PSE results is not always in line with the underlying concepts, and often too narrowly focused on a few aggregate numbers. Against this background, the PSE approach as used by OECD has been criticized as providing potentially misleading information. This note deals with three central questions raised in such criticism. Classification-JEL: F13; Q18 Creation-Date: 2005-04-01 Number: 1 Handle: RePEc:oec:agraaa:1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Brooks Author-Name: Olga Melyukhina Title: Estimating the Pass-Through of Agricultural Policy Reforms: An Application to Brazilian Commodity Markets Abstract: The ultimate impact of multilateral and own-country agricultural policy reforms will depend on the extent to which those reforms “pass-through” across national borders, within countries, and from local markets down to the household level. At the heart of policy pass-through is the question of “price transmission”, i.e. the extent to which price changes in one market lead to price changes in another market... Creation-Date: 2005-11-01 Number: 2 Handle: RePEc:oec:agraaa:2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Pavel Vavra Author-Workplace-Name: OECD Author-Name: Barry K. Goodwin Author-Workplace-Name: North Carolina State University Title: Analysis of Price Transmission Along the Food Chain Abstract: The interest in marketing margins and price transmission has recently gained remarkable momentum and the amount of studies on this subject is rapidly growing. There is a myriad of questions about prices and margins investigated by these studies, yet new questions are surfacing as markets and business practices change with an impressive speed. Wohlgenant (2001), in his survey on marketing margins, identifies some of the questions puzzling researchers and policy makers alike. For example: Are marketing margins too large? Why are margins different among products? How have... Classification-JEL: C22; D4; Q13 Creation-Date: 2005-11-01 Number: 3 Handle: RePEc:oec:agraaa:3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Osamu Kubota Author-Workplace-Name: OECD Title: Adjustment Options and Strategies in the Context of Agricultural Policy Reform and Trade Liberalisation Abstract: Reforming agricultural policies by reducing distorting support improves economic efficiency as a whole through a better allocation of resources. This implies that adjustment may have adverse effects on some agricultural households and other people engaged in the sector, in particular in the short term. There may also be negative impacts on upstream and downstream sectors and on regional economies that rely on commodities whose prices and production levels fall with reductions in support and protection. Despite pressures to reform to meet multilateral and bilateral trade commitments and to respond to budgetary constraints, these adverse impacts are a major reason why governments find it difficult to make progress in policy reform. Creation-Date: 2007-08-01 Number: 4 Handle: RePEc:oec:agraaa:4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Author-Workplace-Name: OECD Title: The Role of Compensation in Policy Reform Abstract: Governments reform policies in order to improve their efficiency and respond to changing social priorities. Reform is resisted when concerns exist about those who may lose out in the process, or when other policy goals are negatively impacted. Compensation can remove barriers to reform by addressing this resistance, and can contribute to adjustment by speeding its process but may itself impede the reform process if it masks the market signals that lead to adjustment. Compensation is not always necessary or appropriate, and should not be seen a prerequisite for reform. Creation-Date: 2007-08-01 Number: 5 Handle: RePEc:oec:agraaa:5-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Blandford Author-Workplace-Name: Pennsylvania State University Title: Information Deficiencies in Agricultural Policy Design, Implementation and Monitoring Abstract: Accurate and complete information is needed to guide the formation, implementation, monitoring and assessment of agricultural policy. Obtaining both qualitative and quantitative information is vital for ensuring that policy measures are targeted, efficient and cost effective. Quantification of impact and benefit-cost analysis are only possible if information of sufficient quantity and quality is available. Meeting this requirement is increasingly challenging due to an expansion in the range and complexity of policy concerns associated with agriculture. Problems can be posed by a lack of knowledge about technical relationships that underlie key processes, by the inherent uncertainty of outcomes or difficulties in monitoring these, and by information asymmetry (i.e. situations in which the information necessary to inform policymaking exists but it is difficult or costly to obtain). This study examines information needs to guide the formation, implementation, monitoring and assessment of policies for agriculture, outlines deficiencies, argues for selective improvements in data availability, quality and relevance in order to satisfy policy priorities, and suggests ways to achieve these. Methods for dealing with remaining deficiencies when designing and implementing policies are also outlined... Creation-Date: 2007-10-01 Number: 6 Handle: RePEc:oec:agraaa:6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Frank van Tongeren Author-Workplace-Name: OECD Title: Agricultural Policy Design and Implementation: A Synthesis Abstract: Are current agricultural policies based on measurable objectives? Is the current policy set adequately addressing stated objectives? What could an improved agricultural policy set look like, and how to get onto a reform trajectory? These are some of the questions addressed in this publication. It draws on several projects that were undertaken in recent years under the auspices of the OECD Committee for Agriculture and summarizes practical recommendations concerning the pathway to agricultural policy reform. It presents operational characteristics of the policy set that would best achieve domestic policy objectives while minimising distortions and spillovers in international trade. Creation-Date: 2008-03-01 Number: 7 Handle: RePEc:oec:agraaa:7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jon G. Sutinen Author-Workplace-Name: University of Rhode Island Title: Major Challenges for Fishery Policy Reform: A Political Economy Perspective Abstract: A political economy perspective of fisheries governance is presented in this paper. In most countries, formal and informal linkages exist among four components of the governance system. The legislature passes laws that authorise the implementation of policies and programmes by a fisheries agency. The fisheries agency establishes a fisheries management authority. Stakeholders often have a formal role – from advising to decision-making – in the management plan development process and approved plans are implemented by the fisheries agency. In general, governance failure (that is, undesirable public policy outcomes) has been attributed to special interest effects, rational voter ignorance, bundling of issues, shortsightedness, decoupling of costs and benefits, and bureaucratic inefficiencies. No studies demonstrate whether private interests significantly influence fishery policies and regulations, but evidence from other sectors suggests that this is very likely. One of the features that distinguishes the fishing industry from other regulated activities is that often there are no strong property rights, and regulation seeks to prevent overexploitation of a common pool resource (CPR). Fishers, in effect, impose costs on each other rather than on consumers, in the absence of regulation. A laboratory experiment was designed to simulate lobbying to influence regulation of a CPR. Results show that competition for fishery earnings weakens the incentive to effectively lobby for regulations that maximise group well-being. More experienced participants believe that their contributions to changing a regulation are not worthwhile. Instead, they focus more on competing for earnings from their use of the CPR. Correcting or mitigating government failure in fisheries might be assisted by the introduction of strong property rights, the devolution of rights and responsibilities to user groups, the use of the cost recovery and sustainable financing mechanisms, and for shielding fishery managers from the shortsighted tendencies of elected officials. But these recommendations may have difficulty in being implemented in the face of strong opposition from private interests in the fishery.

Les grands défis de la réforme de la pêche : Économie politique de la réforme
Une analyse de la gouvernance des pêcheries sous l’angle de l’économie politique est présentée dans ce document. Dans la plupart des pays, il existe des liens formels et informels entre les quatre composantes du système de gouvernance. Le Parlement vote des lois autorisant les autorités compétentes de la pêche à mettre en œuvre des politiques et des programmes. Ces autorités compétentes de la pêche établissent un organisme de gestion des pêches. Les parties prenantes jouent souvent un rôle officiel — variant du conseil à la prise de décision — dans le processus d’élaboration des plans de gestion ; les plans approuvés sont mis en œuvre par les autorités compétentes de la pêche. En général, les échecs de gouvernance (à savoir les résultats indésirables des mesures adoptées par les pouvoirs publics) sont mis sur le compte des intérêts particuliers, de l’ignorance des électeurs, du regroupement des problèmes, de l’absence de vision, du découplage des coûts et des avantages et de l’inefficacité bureaucratique. Bien qu’aucune étude n’ait démontré que les intérêts privés influaient sensiblement sur les politiques et la réglementation de la pêche, ce que l’on a pu observer dans d’autres secteurs laisse à penser que cette influence est très vraisemblable. Le secteur de la pêche se distingue d’autres activités réglementées notamment par l’absence fréquente de droits de propriété solidement établis et par le fait que la réglementation tente d’éviter la surexploitation de ressources communes. En l’absence de réglementation, les pêcheurs font en fait peser des coûts les uns sur les autres plus que sur les consommateurs. Une expérience en laboratoire a été conçue pour simuler les activités de groupes de pression destinées à influer sur la réglementation des ressources communes. Les résultats de l’expérience montrent que la compétition entre pêcheurs pour réaliser le maximum de profits diminue leur volonté de faire pression en faveur de règlements qui maximiseraient le bien-être du groupe. Des participants plus expérimentés estiment que leur contribution à la modification de la réglementation ne présente aucun intérêt. Ils s’attachent en fait davantage à se disputer les profits de l’exploitation de la ressource commune. L’introduction de droits de propriété solidement établis, la délégation des droits et des responsabilités aux groupes d’utilisateurs, le recours à la récupération des coûts et à des mécanismes durables de financement et la protection des gestionnaires des pêches contre la tendance des élus à raisonner à court terme pourraient contribuer à corriger et à réduire l’échec des pouvoirs publics. Néanmoins, ces recommandations risquent de ne pouvoir être mises en œuvre aisément face à la forte opposition des intérêts privés dans le secteur de la pêche. Creation-Date: 2008-03-01 Number: 8 Handle: RePEc:oec:agraaa:8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Joe Dewbre Author-Workplace-Name: OECD Author-Name: Adeline Borot de Battisti Author-Workplace-Name: International Institute for Environment and Development Title: Agricultural Progress in Cameroon, Ghana and Mali: Why It Happened and How to Sustain It Abstract: This booklet synthesizes findings from analysis of agricultural policy and performance in three African countries: Cameroon, Ghana and Mali. Case studies of each of these countries were undertaken as part of the Support for African Agriculture Project (SAAP), a project largely financed by the French Ministries of Foreign Affairs and Agriculture and the International Fund for Agricultural Development (IFAD). The purpose was to identify constraints to agricultural growth and poverty reduction that might be eased through better policy, both domestically and internationally. Creation-Date: 2008-06-01 Number: 9 Handle: RePEc:oec:agraaa:9-EN Template-type: ReDIF-Paper 1.0 Author-Name: Christophe Béné Author-Workplace-Name: WorldFish Center Title: Global Change in African Fish Trade: Engine of Development or Threat to Local Food Security? Abstract: Today fish is the most traded food commodity in the World. This situation is not without generating potential issues. On the one hand, fish trade is said to support economic growth processes in developing countries by providing an important source of cash revenue. On the other hand, fish trade is also said to lead to a decline in food security and a decrease in the availability of fish for the local population. In this paper we explore more thoroughly those two opposite views in the specific case of sub-Sahara Africa. For this we consider a range of eight national development indicators that encapsulate both economic and well-being of sub-Sahara countries over the last decade and correlate them against four indicators reflecting the country-specific importance of fish trade, industrial and small-scale fisheries in the economy of Sub-Sahara Africa. Our statistical analysis shows that when sub-Sahara countries’ data are considered at the macro-economic level the fear that fish trade may affect negatively fish food security is not substantiated by any statistical evidences. At the same time the analysis also shows no evidence to support the claim that international fish trade contributes effectively to national economic development and/or wellbeing. The last section of the paper discusses the various possible reasons for this apparent lack of correlation and highlights the respective flaws underlying the two opposite discourse about the role of fish trade in national development and food security. fish trade poverty reduction Sub-Sahara Africa trickle down

Internationalisation et commerce du poisson africain: moteur de développement ou menace pour la sécurité alimentaire locale?
Le poisson arrive aujourd’hui en tête dans les échanges mondiaux de produits alimentaires. Cette situation peut être appréciée de différentes manières. D’une part, le commerce du poisson sous tendrait le processus de croissance économique dans les pays en développement, grâce aux recettes appréciables ainsi générées. D’autre part, il aurait pour effet d’entamer la sécurité alimentaire et de réduire les quantités de poisson mises à la disposition des populations locales. Il s’agit ici d’étudier de plus près ces deux points de vue opposés dans le cas particulier de l’Afrique subsaharienne. Nous examinons à cette fin huit indicateurs nationaux de développement rendant compte à la fois de la réalité économique et du bien-être des pays de la région durant la décennie écoulée, en les articulant avec quatre indicateurs qui font ressortir, pour chaque pays, l’importance du commerce des produits halieutiques, de la pêche industrielle et de la pêche artisanale dans l’économie de l’Afrique subsaharienne. D’après notre analyse statistique, lorsque les données des pays subsahariens sont envisagées au niveau macroéconomique, la crainte d’un effet négatif sur la sécurité de l’approvisionnement en poisson ne se vérifie pas. L’analyse ne vient pas davantage étayer l’argument selon lequel le commerce international du poisson contribuerait effectivement au développement économique et/ou au bien-être national. La dernière section du document passe en revue les diverses raisons susceptibles d’expliquer cette absence apparente de corrélation et souligne les inconvénients respectifs des deux thèses qui s’affrontent sur le rôle joué par le commerce du poisson dans le développement et la sécurité alimentaire à l’échelle nationale. Keywords: economic growth, fish trade, poverty reduction, Sub-Sahara Africa, trickle down Creation-Date: 2008-12-01 Number: 10 Handle: RePEc:oec:agraaa:10-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Author-Name: George Dyer Author-Workplace-Name: University of California Author-Name: Ed Taylor Author-Workplace-Name: University of California Title: Modelling Agricultural Trade and Policy Impacts in Less Developed Countries Abstract: This paper proposes a methodological framework for examining the distributional effects of alternative agricultural policies in less developed economies. The framework combines disaggregated household models with an explicit modelling of the linkages between product and factor markets. Classification-JEL: D13; D21; D23; D31; D33; Q12; Q18 Keywords: agricultural policy, disaggregated modelling, farm household, income distribution, poverty, welfare Creation-Date: 2008-12-01 Number: 11 Handle: RePEc:oec:agraaa:11-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dalila Cervantes-Godoy Author-Workplace-Name: OECD Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Title: Smallholder Adjustment in Middle-Income Countries: Issues and Policy Responses Abstract: This paper discusses the adjustment pressures faced by smallholders in middle-income countries, considers the types of policy response that are warranted, and proposes an integrated framework for more inclusive development. Central to this framework is the recognition that the long-term (i.e. inter-generational) future of the majority of smallholders lies outside farming. Hence a range of development pathways need to be facilitated, including improved competitiveness within the sector, income diversification (either within or outside agriculture) and the movement to jobs in other sectors. In order to facilitate adjustment, targeted agricultural policies need to be designed in conjunction with a range of complementary economy-wide measures. Classification-JEL: O13; O20; Q10; Q18 Keywords: agriculture, development, government policy, poverty, smallholders, structural adjustment Creation-Date: 2008-12-01 Number: 12 Handle: RePEc:oec:agraaa:12-EN Template-type: ReDIF-Paper 1.0 Author-Name: Céline Giner Author-Workplace-Name: OECD Title: New Avenues of Value Creation in the Agro-Food Sector Abstract: This paper suggests some avenues to explore as new sources of value creation and capture in the agro-food sector. The range of opportunities for value creation is vast, and this paper does not pretend to be exhaustive. New strategies are being prepared by different stakeholders in the sector, in an uncertain and competitive context of globalisation where the expectations of consumers and society in general are evolving. Creation-Date: 2009-01-01 Number: 13 Handle: RePEc:oec:agraaa:13-EN Template-type: ReDIF-Paper 1.0 Author-Name: Linda Fulponi Author-Workplace-Name: OECD Title: Policy Initiatives Concerning Diet, Health and Nutrition Abstract: The main findings of the paper are based on the OECD survey of policy initiatives in diet, health and nutrition and a review of the relevant literature. Overall survey responses indicate that most efforts focus on two main types of activities: first, increasing information on diet and health to consumers to enable them to make informed food choices and, second, promoting increased consumption of fruit and vegetables, particularly amongst children. The survey results provide information on policy experiences and programmes in OECD countries. Creation-Date: 2009-01-01 Number: 14 Handle: RePEc:oec:agraaa:14-EN Template-type: ReDIF-Paper 1.0 Author-Name: Garry Smith Author-Workplace-Name: OECD Title: Interaction of Public and Private Standards in the Food Chain Abstract: This paper discusses a number of issues arising from the contiguous development of public and private quality standards, predominately in developed countries. The paper is an exploratory examination of the ways in which public and private food quality standards interact with each other in modern food systems. This review is not intended to be a comprehensive analysis of the subject matter which is a relatively new area of research. The focus of the report is on food quality standards which are defined here as including the full array of food product and process attributes required by consumers and society as well as food safety. Creation-Date: 2009-02-01 Number: 15 Handle: RePEc:oec:agraaa:15-EN Template-type: ReDIF-Paper 1.0 Author-Name: Pavel Vavra Author-Workplace-Name: OECD Title: Role, Usage and Motivation for Contracting in Agriculture Abstract: Agri-food sectors have been going through a remarkable transformation worldwide. This process has been accompanied by an increasing use of contracts, which raises concerns about market transparency, possible consequences for actors of the food supply chains and the role a government in this changing environment. This paper provides a brief overview of structural changes in the sector and main incentives behind the increased use of contracts in agriculture, together with identifying some emerging policy issues. Classification-JEL: K12; L14; Q18 Creation-Date: 2009-03-01 Number: 16 Handle: RePEc:oec:agraaa:16-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Title: Extensive Margins in Agriculture Abstract: This paper examines whether the growth in agricultural trade of 69 countries between 1996 and 2006 has taken place at the intensive or the extensive margin. The paper addresses the questions: have agricultural exports during this period expanded more through the intensive margin (more exports of established goods to traditional partners) or through the extensive margin (new trade flows in new products and/or to new partners)? At the intensive margin, do richer countries export greater volumes, or do they receive higher prices for their goods? At the extensive margin, are new trade flows the result of an expanded variety of products or the result of exporting established products to more destinations? Classification-JEL: C25; F14; F19; Q17 Creation-Date: 2009-04-01 Number: 17 Handle: RePEc:oec:agraaa:17-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philip Abbott Author-Workplace-Name: Purdue University Title: Development Dimensions of High Food Prices Abstract: Measures were taken by many developing country governments to mitigate consequences of high international agricultural commodity prices from mid 2006 until mid 2008, and to block their transmission to domestic markets, with varying degrees of success and cost. A significant international response has focused on emergency relief and renewed efforts to invest in agricultural development. This paper describes and contrasts the approaches taken by national governments versus international organizations and donors to respond to this food crisis, and their consequences. It also explores approaches already underway to enhance aid effectiveness and achieve more rapid agricultural development for smallholder farmers, identifying potential and past roadblocks. Classification-JEL: O13; Q17; Q18 Keywords: agricultural development, agricultural trade policy, aid effectiveness, emergency relief, food inflation, international commodity prices, price transmission, safety nets Creation-Date: 2009-07-01 Number: 18 Handle: RePEc:oec:agraaa:18-EN Template-type: ReDIF-Paper 1.0 Author-Name: Franziska Junker Author-Workplace-Name: OECD Author-Name: Joanna Ilicic-Komorowska Author-Workplace-Name: OECD Author-Name: Frank van Tongeren Author-Workplace-Name: OECD Title: Impact of Animal Disease Outbreaks and Alternative Control Practices on Agricultural Markets and Trade: The case of FMD Abstract: Foot and Mouth Disease (FMD) is one of the most contagious animal diseases. Because of the easy transfer between animals, FMD is of importance to the domestic market, but also to international agricultural trade. Infected countries are often confronted with rigorous measures implemented by their trading partners. The guidelines set out by the World Organization for Animal Health (OIE) define the waiting period after which a country that experienced an FMD epidemic can be declared as free of the disease for international trade purposes. In order to minimize the duration of this period, infected developed countries have often implemented mass slaughter strategies. The aim of the paper is to examine the impact of alternative control strategies on the domestic market of the infected country and on international markets. The paper provides a description of the different options for policy intervention in case of a FMD epidemic. It gives an overview of the history of FMD in OECD and selected non-OECD countries including the policy measures taken to fight the disease. A quantitative assement combining the Aglink-Cosimo and the GTAP model is presented. Classification-JEL: J17; J18 Creation-Date: 2009-07-01 Number: 19 Handle: RePEc:oec:agraaa:19-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monika Tothova Author-Workplace-Name: OECD Title: The Trade and Trade Policy Implications of Different Policy Responses to Societal Concerns Abstract: Societal concerns as they pertain to farming activities play an important role today in the development of national policies. How such concerns are perceived varies from one society to another as do the policy responses (economic instruments and regulations) that governments put in place. These policy responses have in turn implications for trade and international relations. This study examines a number of issues that are part of the current debate and how these are addressed at the domestic level as well as within the framework of applicable provisions of WTO agreements. Classification-JEL: Q01; Q10; Q17; Q18; Q19; Q5 Keywords: agriculture, international trade, production methods, sanitary and phytosanitary measures Creation-Date: 2009-08-01 Number: 20 Handle: RePEc:oec:agraaa:20-EN Template-type: ReDIF-Paper 1.0 Author-Name: Frank van Tongeren Author-Workplace-Name: OECD Author-Name: John Beghin Author-Workplace-Name: Iowa State University Author-Name: Stéphane Marette Author-Workplace-Name: Institut national de la recherche agronomique Title: A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade Abstract: This report develops a conceptual framework for the assessment of costs and benefits associated with non-tariff measures that allows an evidence-based comparative assessment of alternative regulatory approaches. Classification-JEL: F13; L15; L51; Q17 Keywords: agriculture in international trade, economics of regulation, information and product quality, international trade organisations, standardization and compatibility, trade policy Creation-Date: 2009-11-01 Number: 21 Handle: RePEc:oec:agraaa:21-EN Template-type: ReDIF-Paper 1.0 Author-Name: Anthony Cox Author-Workplace-Name: OECD Title: Quota Allocation in International Fisheries Abstract: Developing an allocation scheme for distributing rights amongst fishing nations is a key issue in the development of stable cooperative arrangements to exploit international fish resources. Allocation within regional fisheries management organisations (RFMOs) is generally based on the historical catches of parties to the RFMOs. However, as membership of RFMOs increases and pressure to allow additional countries, particularly coastal developing countries, to participate meaningfully in international fisheries intensifies, there is increasing policy attention being paid to the issue of allocation of rights in RFMOs. This paper explores issues relating to the process of allocating participatory rights in RFMOs, especially in those cases in which one or more fisheries remain unallocated, and is intended to stimulate discussion among policy makers on possible policy directions in such situations without directly or indirectly evaluating existing allocation schemes. The paper reviews the international legal framework governing international fisheries, the economic issues underlying allocations, and the current state of play in the allocation regimes in RFMOs. A broader perspective on the allocation issue is provided by examining the experiences of other resource sectors that have wrestled policy challenges similar to those confronting international fisheries in allocating participatory rights amongst current and potential participants - water resources; and greenhouse gases – to see if they offer any transferable insights on the issue. Classification-JEL: D78; F53; H70; H73; Q22; Q27 Keywords: fishery policy, international fisheries, quota allocation, RFMO Creation-Date: 2009-12-01 Number: 22 Handle: RePEc:oec:agraaa:22-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dalila Cervantes-Godoy Author-Workplace-Name: OECD Author-Name: Joe Dewbre Author-Workplace-Name: OECD Title: Economic Importance of Agriculture for Poverty Reduction Abstract: The Millennium Declaration set 2015 as the target date for halving the number of people living in extreme poverty. Exceptional progress in some developing countries makes achieving that goal globally a realistic possibility. However, many countries will fall far short, and up to 1 billion people are likely to remain destitute by the target date. Why are some countries doing better than others? This paper seeks to answer this question by looking for shared characteristics of twenty-five developing countries posting extraordinary success in reducing extreme poverty over the past twenty to twenty-five years. These countries were compared using indicators of their macro-economic characteristics and, especially, their agricultural economic characteristics. The countries chosen for analysis constitute a highly diverse mix. The group includes some of the poorest and some of the richest developing countries in the world, representing virtually all geographic regions. The countries also differ greatly in their systems of governance and economic management. Yet, they are surprisingly similar in their achievements, not only in reducing poverty, but across the broad range of macroeconomic and agricultural economic performance measures used to compare them. Findings from time-series, cross-section regression analysis reveal that while economic growth generally was an important contributor to poverty reduction, the sector mix of growth mattered substantially, with growth in agricultural incomes being especially important. Classification-JEL: I32; O10; O13; O40; O57; Q10; Q18 Keywords: agricultural development, Millennium development goals, poverty reduction Creation-Date: 2010-01-01 Number: 23 Handle: RePEc:oec:agraaa:23-EN Template-type: ReDIF-Paper 1.0 Author-Name: Vaclav Vojtech Author-Workplace-Name: OECD Title: Policy Measures Addressing Agri-environmental Issues Abstract: This report focuses on the developments in the overall range of policies addressing environmental issues in agriculture in OECD countries in the past decade (since the mid 1990s). It is undertaken from the perspective of the environmental objectives pursued by the policies and from the perspective of the policy measures used. OECD countries use different mixes of policy instruments to achieve their various environmental objectives where markets for externalities and public goods are missing. The policy instruments applied are the reflection of the overall policy approach to the sector; the specific environmental issues and their perceived linkage to agriculture activities; the nature of property rights related to the use of natural resources (land, water); and societal concerns related to environmental issues. Keywords: agri-environmental measures, agri-environmental payments, agricultural policy, environmental policies, environmental regulations Creation-Date: 2010-03-16 Number: 24 Handle: RePEc:oec:agraaa:24-EN Template-type: ReDIF-Paper 1.0 Author-Name: Daniel S. Holland Author-Workplace-Name: Gulf of Maine Research Institute Title: Management Strategy Evaluation and Management Procedures: Tools for Rebuilding and Sustaining Fisheries Abstract: Fisheries management is complicated in nearly all cases by a high degree of uncertainty about the current state and expected growth of fish stocks and about the economic and social factors that affect the desirable harvest levels. Even for fisheries with excellent data collection programs, scientific surveys and sophisticated assessments, the estimates of catch levels that will maintain healthy fisheries or rebuild depleted ones are often far from accurate. Consequently recommended catch levels often fluctuate more than necessary in response to error in assessments rather than true stock variability and frequently react too slowly due to lags in data collection, assessment and implementation. Overly optimistic estimates of stock size and future growth have often led to allowing catch levels that undermine rebuilding. Fishery management strategies also rarely include specific objectives developed with stakeholder involvement which can undermine stakeholders‘ support for conservation even when it may be in their best interest. In this paper I discuss an approach for evaluating and implementing fishery management strategies known as management strategy evaluation (MSE), also sometimes referred to as the management procedure (MP) approach that is designed to identify and operationalise strategies for managing fisheries that are robust to several types of uncertainty and capable of balancing multiple economic, social and biological objectives. When implemented correctly an MSE should result in clear and measurable objectives and a robust process for achieving them that fishery managers and stakeholders have jointly developed and agreed to. I review several examples of MSEs that have been used to evaluate, and in some cases implement, rebuilding strategies for overfished fisheries. These case studies demonstrate how the MSE approach has been applied and some of its advantages and limitations Keywords: fisheries economics, fisheries management, fisheries rebuilding, management strategy evaluation, New Zealand Rock Lobster, South African Hake Creation-Date: 2010-06-16 Number: 25 Handle: RePEc:oec:agraaa:25-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Christine LeThi Author-Workplace-Name: OECD Title: Farm Level Analysis of Risk and Risk Management Strategies and Policies: Cross Country Analysis Abstract: This Working Paper presents the work on farm level analysis of risk management environment, strategies and policies. Two types of results are presented: statistical indicators of risk exposure at the individual level, and micro model simulation results on risk management strategies. Classification-JEL: Q10; Q13; Q18; R38 Creation-Date: 2010-06-18 Number: 26 Handle: RePEc:oec:agraaa:26-EN Template-type: ReDIF-Paper 1.0 Author-Name: Scott H. Irwin Author-Workplace-Name: University of Illinois Author-Name: Dwight R. Sanders Author-Workplace-Name: University of Southern Illinois Title: The Impact of Index and Swap Funds on Commodity Futures Markets: Preliminary Results Abstract: This preliminary study examines the impact of index and swap fund participation in agricultural and energy commodity futures markets. Based on new data and empirical analysis the study finds that index funds did not cause a bubble in agricultural futures prices. Using Granger causality methods the study finds no statistically significant relationship between changes in index and swap fund positions and increased market volatility. The evidence is strongest for agricultural futures markets because the data on index trader positions are measured with reasonable accuracy. The evidence is not as strong in the two energy markets examined here because of considerable uncertainty about the degree to which the available data actually reflect index trader positions in these markets. Keywords: agricultural futures markets, futures price volatility, index funds and swaps, speculation, speculative bubbles Creation-Date: 2010-06-01 Number: 27 Handle: RePEc:oec:agraaa:27-EN Template-type: ReDIF-Paper 1.0 Author-Name: Frank van Tongeren Author-Workplace-Name: OECD Author-Name: Anne-Célia Disdier Author-Workplace-Name: Institut national de la recherche agronomique Author-Name: Joanna Ilicic-Komorowska Author-Workplace-Name: OECD Author-Name: Stéphane Marette Author-Workplace-Name: Institut national de la recherche agronomique Author-Name: Martin von Lampe Author-Workplace-Name: OECD Title: Case Studies of Costs and Benefits of Non-Tariff Measures: Cheese, Shrimp and Flowers Abstract: This report applies a cost-benefit analysis to quantify the economic effects of non-tariff measures in the agri-food sector. Three case studies are presented to demonstrate how such analysis can help identify least-cost solutions of Non-Tariff Measures (NTMs) designed to ensure that imported products meet domestic requirements. The present analysis examines benefits and costs for the different domestic and foreign stakeholders involved, thus taking a broader view that goes beyond evaluating the trade impact alone. Classification-JEL: D61; F13; L51; Q17 Keywords: food safety, international trade, non-tariff measures, plant health, trade policy Creation-Date: 2010-07-01 Number: 28 Handle: RePEc:oec:agraaa:28-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Abler Author-Workplace-Name: Pennsylvania State University Title: Demand Growth in Developing Countries Abstract: This report prepared by a consultant, Dr. David Abler of Penn State University in the United States, examines structural changes in the demand for agricultural products arising from economic growth in a number of large developing and emerging economies comprising primarily the BRIIC group of countries (Brazil, Russia, India, Indonesia and China). It reviews and evaluates a number of studies made of the effects of economic growth in large developing and emerging economies on agricultural product demand and the structure of demand. In particular, the report seeks to evaluate the effects of economic growth and rising incomes on the composition of agricultural product demand across product categories (e.g. cereals vs. meat), within product categories (e.g. lower-quality cereals vs. higher-quality cereals) and on the evolution of price and income elasticities of demand for agricultural products - that is, how rapidly are they moving toward the low elasticities seen in many OECD countries. The report also utilises the results of these studies to draw out the possible implications for agricultural commodity demand, commodity prices, and possible price volatility. Keywords: agricultural commodity prices, agricultural food demand, demand attributes, economic growth, food quality, price and income elasticities of demand, price volatility Creation-Date: 2010-07-01 Number: 29 Handle: RePEc:oec:agraaa:29-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laure Latruffe Author-Workplace-Name: INRA-Agrocampus Ouest, Rennes, France Title: Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors Abstract: This report reviews the literature on competitiveness, productivity and efficiency in the agricultural and agri-food sectors. It clarifies concepts and terminology used in this area, and provides a critical assessment of approaches and indicators used in the literature to measure competitiveness, productivity and efficiency at sectoral and farm levels. It also discusses recent findings on productivity growth, changes in relative competitiveness between sub-sectors and countries, and determinants of competitiveness, in addition to identifying the major knowledge gaps. This report suggests that more attention should be paid to the agri-food sector, non-price factors of competitiveness, and the impact of government intervention on competitiveness. Keywords: agri-food sector, agriculture, comparative advantage, competitiveness indicators, determinants of competitiveness, domestic resource costs, farm productivity, productivity growth Creation-Date: 2010-08-01 Number: 30 Handle: RePEc:oec:agraaa:30-EN Template-type: ReDIF-Paper 1.0 Author-Name: Julian M. Alston Author-Workplace-Name: University of California Title: The Benefits from Agricultural Research and Development, Innovation, and Productivity Growth Abstract: This report contains a review of the literature on the role of agricultural research and development in fostering innovation and productivity in agriculture. The review seeks to clarify concepts and terminology used in the area, provide a critical assessment of approaches found in the literature, report main results, and draw inferences. A key finding is that the social rate of return to investments in agricultural R&D has been generally high. Specific findings differ depending on methods and modelling assumptions, particularly assumptions concerning the research lag distribution, the nature of the research-induced technological change, and the nature of the markets for the affected commodities. Keywords: agricultural productivity, agricultural R&D, innovation, productivity growth Creation-Date: 2010-08-01 Number: 31 Handle: RePEc:oec:agraaa:31-EN Template-type: ReDIF-Paper 1.0 Author-Name: Darryl Jones Title: Analysing the Composition of Producer Support: New Tools and Methods Abstract: This report considers the analytical potential of the classification system of policy measures in the OECD Producer Support Estimate (PSE) to monitor policy developments. This system of categories, subcategories and labels is based on the form in which transfers are provided to farmers. The analysis of data relating to categories, sub-categories and labels of the PSE classification allows for a critical examination of the strengths and weakness of the PSE classification system. While this system provides a useful picture of some important differences in the way agricultural support policy is implemented over time and between countries, it is obviously limited by the pre-defined categories and labels. But the database also contains a wealth of information on each policy measures, which can be drawn upon for more detailed analysis. Keywords: agricultural policy, agricultural support, composition of support, policy monitoring and evaluation, producer support, PSE Creation-Date: 2010-08-01 Number: 32 Handle: RePEc:oec:agraaa:32-EN Template-type: ReDIF-Paper 1.0 Author-Name: HighQuest Partners, United States Title: Private Financial Sector Investment in Farmland and Agricultural Infrastructure Abstract: Private financial sector investment in agriculture is a small but rapidly growing phenomenon, involving large scale financial institutions, hedge funds and real estate investment trusts as well as private/public companies pursuing farm ownership/management strategies. This sector has been increasingly attracted to agriculture primarily because of current prospects for income generation, capital appreciation, and uncorrelated returns with equity markets and as a hedge against inflation. Little information has been available concerning the profile and role of private investment groups in this asset class or the impact they are having in the communities where they operate. In an effort to shed some light on these operations, a private consulting firm (HighQuest Partners)1 with a proprietary database of funds active in the crop land and agriculture infrastructure was contracted to undertake a confidential survey of private financial sector investment in agriculture. Creation-Date: 2010-08-10 Number: 33 Handle: RePEc:oec:agraaa:33-EN Template-type: ReDIF-Paper 1.0 Author-Name: Darryl Jones Author-Name: Andrzej Kwieciński Author-Workplace-Name: OECD Title: Policy Responses in Emerging Economies to International Agricultural Commodity Price Surges Abstract: This report examines and classifies policy responses in ten major emerging economies to the rise in international agricultural commodity prices in 2006-08. It also analyses impacts of these responses on the domestic market to evaluate their effectiveness in meeting stated policy objectives. The report separates government responses into four major types: market interventions to limit the rise in food prices, market interventions to control inflation, assistance to consumers through safety nets and support to producers. As an indication of the relative importance of these responses in a given country, the report estimates the fiscal costs of policies applied. Developments in trade flows, price transmission, inflation, consumption and production were used to investigate impacts on domestic markets and to draw policy conclusions. Market interventions to minimise the impact on consumers were not always successful, even if trade flows were disrupted, and had taxing effects on farmers who could not benefit from higher international prices. These taxing effects were often partly compensated by increased input-linked support to farmers, which had a relatively high fiscal cost in some instances. Classification-JEL: I38; J33; O10; O13; O57; Q10; Q13; Q17; Q18 Keywords: emerging economies, food price spikes, policy conclusions, policy responses to food price rise Creation-Date: 2010-10-01 Number: 34 Handle: RePEc:oec:agraaa:34-EN Template-type: ReDIF-Paper 1.0 Author-Name: Wyatt Thompson Author-Workplace-Name: University of Missouri Author-Name: Grégoire Tallard Author-Workplace-Name: OECD Title: Potential Market Effects of Selected Policy Options in Emerging Economies to Address Future Commodity Price Surges Abstract: This report examines the market outcomes of different policy options that could be adopted in the event of a future spike in the world price of wheat and rice. The three policies – additional border measures, consumer subsidies or public stocks – only partly mitigate the effect of a price spike on consumers in the implementing countries. However, taxpayer costs can be large, particularly for broad consumer subsidies or to build and carry grain stocks. Trade measures reduce domestic prices to producers, suppressing long-run supply response. There are also negative unintended consequences for international markets and market participants in other countries that trade on these markets. New consumer subsidies or trade measures introduced by some countries to offset rising international grain prices causes those prices to rise even more in other countries. Releasing public stocks eases tight markets and lowers prices in all markets, helping to reduce the price spike, but stock building and rebuilding phases mean higher market prices and less food consumption at other times. In conclusion, none of these policies is an unambiguous solution that sustains food consumption during times of high prices with minimal taxpayer and other costs. Classification-JEL: J33; Q10; Q17; Q18 Keywords: Commodity price spike, consumer subsidies, food security, public stocks, trade measures Creation-Date: 2010-10-14 Number: 35 Handle: RePEc:oec:agraaa:35-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Fluharty Author-Workplace-Name: University of Washington Title: Decision-Making and Action Taking: Fisheries Management in a Changing Climate Abstract: Decision-makers in fisheries management are confronted with the challenge of how to respond to existing and predicted changes in ocean conditions that are likely to affect the stocks of fish they manage. In order to address climate change most research and thinking advises decision-makers to ensure that fisheries are well-managed and abundant in an ecosystem context. These policies can best allow fisheries to adapt to changing climate. To address climate change, decision-makers should carefully monitor changing conditions and potential changes in factors affecting fish stock abundance. An adaptive approach to fisheries management under conditions of climate change requires that decision-makers engage with fishing interests in a transparent manner and in ways that respect the input of fishing interests and in ways that acknowledge the levels of uncertainty. This approach implies a governance approach to management that is closer to co-management or shared management responsibility than in most hierarchical processes that characterize fishery management to date. The answer to the question of when fishery decision-makers should begin to incorporate climate change into decision making processes is that they should have started yesterday. The justification for this is that even today, climate variability can affect fishery management decisions and the sooner this is understood and incorporated into the management process the better. In economic terms, a conservative decision relative to fisheries management is likely to produce a positive long term benefit whereas the failure to recognize the need to act in time may have serious immediate negative consequences especially when compounded by inadequate management. While climate change can also produce positive consequences for some species a note of caution is still advised in anticipating and responding to such opportunities. Classification-JEL: Q22; Q54; Q58 Keywords: climate change, ecosystems, fisheries management, fishery policy, global warming, governance, international fisheries Creation-Date: 2011-01-01 Number: 36 Handle: RePEc:oec:agraaa:36-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jean-Pierre Butault Author-Workplace-Name: INRA Nancy Title: Evolution of Agricultural Support in Real Terms in OECD Countries and Emerging Economies Abstract: This report proposes a methodology to express OECD indicators of support in real terms and establishes specific purchasing power parities for a broad range of commodities so as to compare developments in output volume and prices at an aggregate level. It analyses the evolution of prices, farm receipts and support to agricultural producers in real terms in OECD countries and a number of emerging economies. In the OECD area, support to producers decreased between 1986 and 2009, but two periods can be distinguished. Prior to 1999, the producer support estimate (PSE) in real terms decreased by 20%, but as a percentage of farm receipts (%PSE), the reduction was only 2 percentage points as farm receipts also decreased in a context of falling world prices. Between 1999 and 2009, in a context of rising world prices and farm receipts the decline in both the %PSE and the PSE in real terms was more marked, and the gap between domestic prices and border prices was significantly reduced. This analysis has also been applied to seven additional countries for the period 1995-2007, including two that have since become OECD members (Chile and Israël). Output growth was very strong in these countries with the exception of Russia and Ukraine, leading to higher farm receipts in terms of purchasing power. Support to producers declined in Israël, Chile and South Africa, and increased in other countries, albeit moderately. As a percentage of farm receipts, it remains well below the OECD average. Classification-JEL: Q10; Q18 Keywords: agricultural support, GDP deflator, OECD support indicators, PSE, purchasing power parity, Single commodity transferts Creation-Date: 2011-01-17 Number: 37 Handle: RePEc:oec:agraaa:37-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sherry L. Larkin Author-Workplace-Name: University of Florida Author-Name: Sergio Alvarez Author-Workplace-Name: University of Florida Author-Name: Gil Sylvia Author-Workplace-Name: Oregon State University Author-Name: Michael Harte Author-Workplace-Name: Oregon State University Title: Practical Considerations in Using Bioeconomic Modelling for Rebuilding Fisheries Abstract: Many of the world.s fish stocks are considered to be in need of rebuilding. In response, global agreements, including UNCLOS, have sought to adopt some (optimal) level of fish biomass, usually the level associated with the maximum sustainable yield (MSY). While establishing a sustainable level of harvest is goal with intuitive appeal, the pursuit of MSY ignores many relevant economic and social factors that are critical to the sustainability of a fishery. Classification-JEL: Q22; Q27 Keywords: Bioeconomic Modelling, fisheries economics, fisheries management, fisheries rebuilding, North Atlantic Cod, Northern Prawns, Norwegian Spring Spawning Herring, Spiny Lobster, Striped bass Creation-Date: 2011-01-21 Number: 38 Handle: RePEc:oec:agraaa:38-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Risk Management in Agriculture in Australia Abstract: This report analyzes the agricultural risk management system in Australia, applying a holistic approach that considers the interactions between all sources of risk, farmers. strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The main focus of risk management policy in Australia is drought risk and this paper assesses the objective and instruments of the country.s national drought policy framework. Classification-JEL: Q18 Keywords: agricultural policy, bio-security, catastrophic risk, climate change, cost sharing, drought policy, index insurance, risk-management Creation-Date: 2011-02-10 Number: 39 Handle: RePEc:oec:agraaa:39-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Roger Martini Author-Workplace-Name: OECD Title: Risk Management in Agriculture in Canada Abstract: This report analyses the agricultural risk management system in Canada, applying a holistic approach that considers the interactions between all sources of risk, farmers‘ strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The main policy issue in this report is the definition of the boundaries of these different layers. In Canada the system is overcrowded with policies and unable to signal risk layers in which farmers should take their own responsibility of management. Policies include AgriInvest, AgriInsurance, AgriStability, AgriRecovery and ad hoc measures. The analysis of AgriStability provides insights about the economics of agricultural income stabilization policies. Classification-JEL: Q18 Keywords: agricultural policy, catastrophic risk income stabilization, insurance, montecarlo simulations, policy targeting, risk-management Creation-Date: 2011-02-10 Number: 40 Handle: RePEc:oec:agraaa:40-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olga Melyukhina Author-Workplace-Name: OECD Title: Risk Management in Agriculture in The Netherlands Abstract: This report analyzes the agricultural risk management system in the Netherlands, applying a holistic approach that considers the interactions between all sources of risk, farmers’ strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The main risk-related policies in the Netherlands are implemented as part of the EU policy framework. Specifically, national policies focus on the management of catastrophic risks by promoting public-private partnerships, such as Livestock Veterinary Fund, to manage the costs of livestock epidemics. The mutual insurance companies specialised in the coverage of specific types of risks are also promoted, with some of them receiving start-up capital and re-insurance support. The recently launched subsidised multi-peril yield insurance exploits the new opportunities created by the EU framework. Classification-JEL: Q18 Keywords: agricultural policy, Livestock Veterinary Fund, muti-peril insurance, pest and disease risk, risk perceptions, risk-management Creation-Date: 2011-03-08 Number: 41 Handle: RePEc:oec:agraaa:41-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olga Melyukhina Author-Workplace-Name: OECD Title: Risk Management in Agriculture in New Zealand Abstract: This report analyzes the agricultural risk management system in New Zealand, applying a holistic approach that considers the interactions between all sources of risk, farmers’ strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The risk management policy in New Zealand is focused on prevention of pest and disease incursions. Assistance related to natural catastrophes is delivered within the Adverse Events Framework programme. The government contributes to knowledge and information systems to support private risk management efforts. Classification-JEL: Q18 Keywords: adverse events framework, agricultural policy, bio-security, co-operatives, industry good organisations, levy organisations, risk management, risk perceptions Creation-Date: 2011-02-10 Number: 42 Handle: RePEc:oec:agraaa:42-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Shingo Kimura Author-Workplace-Name: OECD Title: Risk Management in Agriculture in Spain Abstract: This report analyses the agricultural risk management system in Spain, applying a holistic approach that considers the interactions between all sources of risk, farmers. strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The Spanish risk management system is dominated by public insurance. Two main policy issues are discussed in this paper. First, the contribution of the insurance system to market efficiency; this comes from the information sharing arrangement in the public private partnership, rather than from the premium subsidies. Second, the insurance system as a device for catastrophic assistance. Classification-JEL: Q18 Keywords: agricultural policy, catastrophic risk insurance, information sharing, public-private partnerships, risk-management Creation-Date: 2011-02-10 Number: 43 Handle: RePEc:oec:agraaa:43-EN Template-type: ReDIF-Paper 1.0 Author-Name: Linda Fulponi Author-Workplace-Name: OECD Author-Name: Matthew Shearer Author-Workplace-Name: Inter-American Development Bank Author-Name: Juliana Almeida Author-Workplace-Name: Inter-American Development Bank Title: Regional Trade Agreements - Treatment of Agriculture Abstract: This study develops earlier OECD work on the treatment of agriculture in regional trade agreements for Latin America by extending the geographic coverage to Asia-Pacific and selected agreements in Africa. It covers over 50 regional trade agreements with respect to market access, subsidies, trade remedies, and requirements relating to sanitary & phytosanitary measures (SPS) and technical barriers to trade (TBT). These are compared to the requirements of the World Trade Organization (WTO) in order to assess whether they provide for greater market access. Most of the agreements studied show substantial progress with respect to tariff elimination in conformity with Article XXIV of the General Agreement on Tariffs and Trade (GATT). Agricultural export subsidies are banned in over half the agreements, signalling greater trade liberalisation. However, there is much less progress made in the areas of SPS and TBT. Classification-JEL: F1; F13; Q10; Q27 Keywords: Article XXIV GATT, free trade agreements, regional trade agreements, SPS measures, tariff elimination Creation-Date: 2011-03-31 Number: 44 Handle: RePEc:oec:agraaa:44-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Author-Workplace-Name: OECD Title: Long Term Trends in Agricultural Policy Impacts Abstract: Agricultural policies have undergone reforms in most OECD countries, each choosing a different path to replace policies historically based on market price support with other forms of support deemed superior in achieving differing policy objectives. This report looks at the results of this reform in six OECD regions and concludes that while every region has seen progress, results have been uneven. The key to reform that delivers effective results is keeping the focus on reducing market price support. Reforms moving from one form of land-based payment to another offer relatively little scope for improving the impact of the overall policy set. Recent reductions in market price support are at risk of reversal if the current trend towards higher commodity prices does not continue, as much of recent progress reflects market developments and not underlying policy change. Classification-JEL: Q14; Q17; Q18 Keywords: agricultural policy, indicators, policy reforms, protection, trade Creation-Date: 2011-04-01 Number: 45 Handle: RePEc:oec:agraaa:45-EN Template-type: ReDIF-Paper 1.0 Author-Name: Catherine Moreddu Author-Workplace-Name: OECD Title: Distribution of Support and Income in Agriculture Abstract: Agricultural production and support in Canada, the United States, and the European Union are highly concentrated on larger farms, which have higher income levels than the average of all farms. Smaller farms, though, are more dependent on support (in particular, payments) which accounts for a larger share of their gross receipts. As payments to farmers are more equally distributed than production, government support reduces income inequality by farm size and farm type. This study, carried out in the context of the OECD Network for Farm Level Analysis, concludes that improved efficiency and equity of policies will require better targeting of income support and, in turn, better information on the income and wealth situation of the agricultural population. Classification-JEL: D31; Q12; Q18 Keywords: agricultural policy, agricultural support, distribution of support, equity, farm wealth, income distribution, targeting Creation-Date: 2011-05-01 Number: 46 Handle: RePEc:oec:agraaa:46-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Title: Changing Patterns of Trade in Processed Agricultural Products Abstract: Trade in processed products, such as chocolates, steaks or wines, is dominated by high income OECD countries, although it is slowing down between these countries while growing very fast between emerging economies. Low income countries, however, account for a small share of such trade. Countries with a revealed comparative advantage in the processed agricultural markets are mostly high income countries and capture the majority of the trade, while many low income countries have a comparative advantage for other agricultural products. This study describes the patterns of trade, examines which countries have a comparative advantage and how this may have changed over time, analyses the level of productivity of countries’ export basket and its contribution to income, and determines whether trade has increased at the extensive or intensive margins. This study uses the gravity framework to gain a better understanding of the underlying factors for the international trade of products. Keywords: agricultural trade, comparative advantage, EXPY, extensive margin, gravity framework, processed agricultural products, PRODY, tariffs, trade facilitation Creation-Date: 2011-06-24 Number: 47 Handle: RePEc:oec:agraaa:47-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Christine Le Thi Author-Workplace-Name: OECD Title: Farm Level Analysis of Risk and Risk Management Strategies and Policies: Technical Note Abstract: This Working Paper serves as a technical background note for the Farm-level analysis of risk, risk management strategies and policies (OECD Food, Agriculture and Fisheries Working Papers No.26). It describes: 1) the data source and analytical methods employed to measure risk exposure at the farm level; 2) the stochastic simulation model to analyze farm behaviour and policy performance under risk; and 3) cluster analysis as a way of selecting representative farms for model calibration. Keywords: cluster analysis, holistic approach, risk management Creation-Date: 2011-08-02 Number: 48 Handle: RePEc:oec:agraaa:48-EN Template-type: ReDIF-Paper 1.0 Author-Name: Joe Dewbre Author-Workplace-Name: OECD Author-Name: Dalila Cervantes-Godoy Author-Workplace-Name: OECD Author-Name: Silvia Sorescu Author-Workplace-Name: OECD Title: Agricultural Progress and Poverty Reduction: Synthesis Report Abstract: Achieving the Millennium Development Goal to halve global poverty by 2015 looks increasingly likely, although many countries may fall far short of this goal. This study compares socio-economic characteristics of twenty-five countries that have posted exceptional progress in reducing poverty to better understand why some countries are doing better than others. Three key questions were addressed: 1) Is agriculture more important than other sources of earned income in reducing poverty? 2) Are the countries most successful in reducing poverty similar in other ways? 3) Which government policy actions seem to have contributed most? Both the overall rate and the sectoral composition of economic growth matter for poverty reduction, but remittances and other kinds of financial transfers are also important sources of income for the poor. The sectoral pattern of growth changes systematically as countries develop, posing challenges for governments searching for the best balance of macroeconomic, social and sectoral policies to foster poverty reduction. Keywords: agriculture, growth, poverty, remittances Creation-Date: 2011-08-10 Number: 49 Handle: RePEc:oec:agraaa:49-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Author-Name: Mateusz Filipski Author-Workplace-Name: University of California, Davis Author-Name: Erik Jonasson Author-Workplace-Name: Lund University Author-Name: J. Edward Taylor Author-Workplace-Name: University of California, Davis Title: Modelling the Distributional Implications of Agricultural Policies in Developing Countries: The Development Policy Evaluation Model (DEVPEM) Abstract: This paper presents the Development Policy Evaluation Model (DEVPEM), a new simulation model which captures four critical aspects of rural economies in developing countries: (1) the role of the household as both a producer and a consumer of food crops; (2) high transaction costs of participating in markets; (3) market linkages among heterogeneous rural producers and consumers; (4) the imperfect convertibility of land from one use to another. The results of simulations for six country models show that no untargeted agricultural policy intervention is pro-poor within the rural economy. While agricultural policy instruments are less efficient at raising rural incomes than direct payments, the degree of inefficiency of some market interventions, notably input subsidies, is not inevitably as high as observed in developed OECD countries. Keywords: agricultural policy, general equilibrium, household analysis, welfare Creation-Date: 2011-11-15 Number: 50 Handle: RePEc:oec:agraaa:50-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Author-Name: Mateusz Filipski Author-Workplace-Name: University of California, Davis Author-Name: Erik Jonasson Author-Workplace-Name: Lund University Author-Name: J. Edward Taylor Author-Workplace-Name: University of California, Davis Title: The Development Policy Evaluation Model (DEVPEM): Technical Documentation Abstract: This paper provides technical documentation of the Development Policy Evaluation Model (DEVPEM model). It contains a discussion of the theoretical building blocks of the model; an overview of the data sources used for the simulations; and explanations of how household groups are categorized and how the model is calibrated. Finally it describes the design of the agricultural policy simulations that are examined in the accompanying policy paper. Keywords: agricultural policy, general equilibrium, household analysis, welfare Creation-Date: 2011-11-15 Number: 51 Handle: RePEc:oec:agraaa:51-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marilyne Huchet-Bourdon Author-Workplace-Name: AgroCampus Ouest Title: Agricultural Commodity Price Volatility: An Overview Abstract: Recent years have witnessed a sharp increase in many commodity prices. This report examines the question of whether commodity price volatility has materially changed with the rapid run up in world prices in 2006-09, followed by an equally sharp decline in many commodity prices. The report analyses international price volatility for selected agricultural commodities over the past half-century and their relationship with crude oil, fertiliser and the euro-dollar exchange rates. The analysis utilises different data sources, frequency of price observations, periods of observation, price volatility measures and a number of statistical tests to examine the various dimensions of the issue. Keywords: agricultural markets, correlation and causality, price volatility Creation-Date: 2011-12-06 Number: 52 Handle: RePEc:oec:agraaa:52-EN Template-type: ReDIF-Paper 1.0 Author-Name: Christopher Gilbert Author-Workplace-Name: University of Trento Title: International Agreements for Commodity Price Stabilisation: An Assessment Abstract: This paper looks at commodity stocks, their role in price determination for storable commodities, and past efforts of international stockholding arrangements with economic provisions in stabilising world prices. Low stocks to use ratios of recent years were one of a number of contributory factors to the grain price spike in 2007-08, the paper finds. However, the experience with past international commodity agreements (ICAs) with price band provisions and stockholding obligations suggests that they had only limited success in reducing the volatility of the prices they set out to stabilise, as well as being prone to many other operational problems. The paper also suggests that as a possible response to apparently inadequate private storage, public sector storage would be costly, ineffective in countering price spikes once stocks are fully exhausted, and would crowd out private storage. Some market-based approaches to countering food price volatility are also examined as alternatives to commodity storage. Keywords: food security, grain prices, international commodity agreements, public and private stocks, storage, volatility Creation-Date: 2011-12-12 Number: 53 Handle: RePEc:oec:agraaa:53-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Title: Structural Change in Commodity Markets: Have Agricultural Markets Become Thinner? Abstract: It is generally asserted that markets of internationally traded agricultural commodities are thin and more volatile, but with little supporting evidence. For internationally traded agricultural products, it is not clear what constitutes “thin” markets and how this “thinness” contributes to price volatility. Nonetheless, in the current atmosphere of high food and agricultural prices, the sentiment that international prices are more volatile because agricultural markets are thin, is widely shared. This study examines whether selected agricultural markets have become thinner using a particular notion of market thinness relevant for internationally traded goods – exports as a share of production. The results suggest that for most of the commodities examined from 1970 to 2010 the answer is that markets have not become thinner. To support this conclusion, two other measures are used for a robustness check to round out the analysis and provide a multidimensional picture. These two measures are the number of participants (countries) trading in any market and the level of market concentration as revealed by the Herfindahl Index. Keywords: agricultural exports, beef, dairy products, grains (wheat, rice, maize), soybeans, sugar, variability Creation-Date: 2012-01-25 Number: 54 Handle: RePEc:oec:agraaa:54-EN Template-type: ReDIF-Paper 1.0 Author-Name: Christopher Costello Author-Workplace-Name: University of California Author-Name: Brian P. Kinlan Author-Workplace-Name: National Oceanic and Atmospheric Administration Author-Name: Sarah E. Lester Author-Workplace-Name: University of California Author-Name: Steven D. Gaines Author-Workplace-Name: University of California Title: The Economic Value of Rebuilding Fisheries Abstract: The global demand for protein from seafood – whether wild, caught or cultured, whether for direct consumption or as feed for livestock – is high and projected to continue growing. However, the ocean’s ability to meet this demand is uncertain due to either mismanagement or, in some cases, lack of management of marine fish stocks. Efforts to rebuild and recover the world’s fisheries will benefit from an improved understanding of the long-term economic benefits of recovering collapsed stocks, the trajectory and duration of different rebuilding approaches, variation in the value and timing of recovery for fisheries with different economic, biological, and regulatory characteristics, including identifying which fisheries are likely to benefit most from recovery, and the benefits of avoiding collapse in the first place. These questions are addressed using a dynamic bioeconomic optimisation model that explicitly accounts for economics, management, and ecology of size-structured exploited fish populations. Within this model framework, different management options (effort controls on small-, medium-, and large-sized fish) including management that optimises economic returns over a specified planning horizon are simulated and the consequences compared. The results show considerable economic gains from rebuilding fisheries, with magnitudes varying across fisheries. Creation-Date: 2012-04-16 Number: 55 Handle: RePEc:oec:agraaa:55-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Author-Workplace-Name: OECD Title: Fuel Tax Concessions in the Fisheries Sector Abstract: At the 2009 Pittsburgh Summit, G20 leaders requested an analysis of the scope of energy subsidies and suggestions regarding how they may be phased out and rationalised. This report responds to this request by identifying and measuring fuel tax concessions in the fisheries sector. It provides data on fuel use, tax concessions, and related information for OECD countries and partners, as well as describing some of the key challenges in measuring data of this type. Keywords: environmentally harmful subsidies, fisheries, fossil-fuel subsidies, fuel use, tax concessions, tax exemptions Creation-Date: 2012-04-18 Number: 56 Handle: RePEc:oec:agraaa:56-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shinichi Taya Author-Workplace-Name: OECD Title: Stochastic Model Development and Price Volatility Analysis Abstract: The OECD-FAO Agricultural Outlook provides mid-term projections of global agricultural markets simulated by the AGLINK-COSIMO model. While the projections typically present a deterministic outlook for markets that are conditional on a set of assumptions, recent experience of highly turbulent markets has renewed interest in quantitative assessment of price volatility by stochastic simulations using the AGLINK-COSIMO model. Improvements in the methodology of stochastic analyses are pursued and implemented. As an application, the impact of crop yield shocks on price volatility is studied. Since the concurrent reduction in production in different countries is deemed as one of the factors of the price spike in 2007/08, the contribution of correlation of yield shocks to price volatility is measured. This paper shows that correlation effects account for a significant portion of price volatility for coarse grains and wheat. Keywords: coarse grains, correlation, rice, stochastic simulations, variability, volatility, wheat Creation-Date: 2012-07-18 Number: 57 Handle: RePEc:oec:agraaa:57-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Author-Name: Andrea Cattaneo Title: A Comparative Study of Risk Management in Agriculture under Climate Change Abstract: Climate change affects the mean and variability of weather conditions and the frequency of extreme events, which to a great extent determines the variability of production and yields. This paper reviews the scientific literature on the impacts of climate change on yield variance and investigates their implications for the demand of crop insurance and effectiveness of different farm strategies and policy measures using crop farm data in Australia, Canada and Spain. A microeconomic farm level model is calibrated to different types of farms and used to simulate the responses and impacts of four policy measures: ex post disaster payments and three types of crop insurance (individual yields, area-based yield and weather index). The strong uncertainties about climate change are captured in a set of seven scenarios covering different assumptions about the scope of climate change (no change, marginal change, and high occurrence of extreme events), and farmers’ adaptation response (no adaptation, diversification, and structural adaptation). Policy decision making under these uncertainties is analysed using a standard Bayesian probabilistic approach, but also using other criteria that look for robust second best choices (MaxiMin and Satisficing criteria). Classification-JEL: D81; G22; H84; Q18; Q54 Keywords: adaptation, climate change, Crop insurance, second best policies, uncertainty Creation-Date: 2012-07-01 Number: 58 Handle: RePEc:oec:agraaa:58-EN Template-type: ReDIF-Paper 1.0 Author-Name: Wyatt Thompson Author-Workplace-Name: University of Missouri Author-Name: Garry Smith Author-Workplace-Name: OECD Author-Name: Armelle Elasri Author-Workplace-Name: OECD Title: World Wheat Price Volatility: Selected Scenario Analyses Abstract: This study complements OECD analyses on commodity price volatility by providing quantitative assessments of the impact of two structural changes that a number of market observers have identified as contributing to world wheat market price volatility. The factors examined relate to changes in demand in the large emerging countries of the BRICs (comprising Brazil, the Russian Federation, India and China), as a result of continuing economic growth and development and the effect of a lower levels of global wheat stocks in recent years. A further scenario extends the analysis of the role of stocks in price volatility by examining some effects of a hypothetical international buffer stockholding scheme to stabilise international wheat prices. Each scenario was undertaken with the Aglink-Cosimo model and the stochastic baseline as reported in the OECD-FAO Agricultural Outlook, 2011-2020. The results suggest that both factors have contributed to the recorded volatility in world wheat markets in recent years. However the increase in market volatility arising from economic development and income growth is likely to occur gradually, while the moderating effect of larger stocks may only be fleeting. The stylised wheat buffer stock scheme with a price band may lead to slightly lower market volatility under highly specific conditions and constraining assumptions. These, however, have proven difficult to achieve and sustain in practice, as observed from past attempts to implement such schemes. Keywords: buffer stocks, price, scenarios, simulation, stochastic simulations, variability, volatility, wheat Creation-Date: 2012-11-19 Number: 59 Handle: RePEc:oec:agraaa:59-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Christine Le Thi Author-Workplace-Name: OECD Title: Cross Country Analysis of Farm Economic Performance Abstract: This report analyses the farm performance data contributed through the OECD Network for Farm-level Analysis. It first compares the distribution of four economic performance indicators across nine participating countries or regions for selected farm types (output and input ratio, and net operating income per unit of labour, land and net worth). The comparative analysis shows significant differences in farm economic performances within countries as well as across countries. It implies that promoting the adoption of existing best practice and improving the resource allocation can lead to a significant improvement in the sector’s performance. The factor analysis found that large farm size is a factor of high economic performance for most types of farms across countries, but it also identified other relevant factors of high performance independent of the farm size factor, such as younger age, higher education, and use of financial leverage. See also OECD Food, Agriculture and Fisheries Papers No. 46 “Distribution of support and income in agriculture” (http://dx.doi.org/10.1787/5kgch21wkmbx-en). Classification-JEL: D31; Q12; Q18 Keywords: factor analysis, farm performance, farm size, off-farm income, output and input ratio, producer support, resource allocation Creation-Date: 2013-05-22 Number: 60 Handle: RePEc:oec:agraaa:60-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dalila Cervantes-Godoy Author-Workplace-Name: OECD Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Smallholder Risk Management in Developing Countries Abstract: This paper addresses various aspects of risk and risk management for smallholders in developing countries, and presents a quantitative assessment of farm-level risks and risk management strategies in three emerging economies: Brazil, China and Viet Nam. The analysis covers production, income, and poverty risks. Institutional and political settings in developing countries are frequently less developed and this contributes to a greater incidence of market imperfections in key areas such as credit and insurance, and which in turn lowers farmers’ access to risk management tools and strategies. The result is a widespread reliance on informal mechanisms and community strategies. The effects of risk and responses to risk are also different in developing countries, with smallholders often forced to rely on strategies that perpetuate poverty. When risk is an important consideration in a farm household’s decision on sector transition, insurance or safety-net mechanisms could assist these households to make that transition. The analysis of two regions in Viet Nam shows that those households able to successfully transit to the non-farm sector continued to maintain small plots of land for self-consumption, suggesting that agriculture remains a kind of safety net. Classification-JEL: G21; G22; O13; Q10; Q11; Q12; Q13; R38 Keywords: agricultural policy, agricultural risk, developing countries, risk management strategies, smallholders Creation-Date: 2013-06-10 Number: 61 Handle: RePEc:oec:agraaa:61-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin von Lampe Author-Workplace-Name: OECD Author-Name: Hyunchul Jeong Author-Workplace-Name: OECD Title: Design and Implementation of Food-Import Related Regulations: Experiences from Some Regional Trade Agreements Abstract: This report looks at procedures and processes related to non-tariff measures in agricultural trade. Based on the prior that countries are likely to make efforts to reduce the trade hindering effects of domestic food regulation within regional trade agreements, we focus on three different RTAs, including the North Atlantic Free Trade Agreement, the EU-Switzerland Free Trade Agreement (and more precisely, the EU-Switzerland Agreement on Trade in Agricultural Products), and the EU-Chile Free Trade Association. The paper first compares the texts of these RTAs with the provisions made in the WTO SPS and TBT Agreement and assesses their revealed ambition with respect to avoiding NTM-related frictions in agricultural trade between party countries. Based on a survey covering the countries party to these RTAs, the paper then analyses the way processes in the design and implementation of regulations differ across these countries. It identifies several areas where processes within RTA member countries could potentially inform process developments in other RTAs or at a multilateral level and calls for further research to better understand the empirical implications of such processes. Classification-JEL: F13; F15; Q17; Q18 Keywords: dispute settlement mechanism, non-tariff measures, regulatory impact assessment, RTA, SPS measures, transparency, WTO Creation-Date: 2013-06-28 Number: 62 Handle: RePEc:oec:agraaa:62-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Title: How Export Restrictive Measures Affect Trade of Agricultural Commodities Abstract: Information on export restrictive measures was collected from 16 countries for the period 2007 to 2011 or 2012 depending on the country. The data indicate that export measures were applied across the whole spectrum of agricultural and food products, but grains, oilseeds and vegetable oils were particularly targeted. A variety of measures were employed at least one time on at least on product. Export bans were used by most (13) of the countries in the inventory while nine countries used export duties and export quotas were used by eight. The various measures were often used sequentially or concurrently. The data indicate that in most years, world trade of the commodities of interest rose suggesting that when restrictive measures lowered exports from intervening countries, competitors were able to compensate. For the world rice market, however, export restrictions significantly lowered exports of interfering countries, but other rice suppliers filled the gap as total imports were not affected. Classification-JEL: Q02; Q17; Q18 Keywords: agricultural policy, agricultural trade, export restrictions, food trade, grains (wheat, rice, maize), vegetable oils Creation-Date: 2013-07-04 Number: 63 Handle: RePEc:oec:agraaa:63-EN Template-type: ReDIF-Paper 1.0 Author-Name: Linda Fulponi Author-Workplace-Name: OECD Author-Name: Alejandra Engler Author-Workplace-Name: Universidad de Talca Title: The Impact of Regional Trade Agreements on Chilean Fruit Exports Abstract: This report analyses the impact of Chile’s free trade agreements (FTAs) on fresh fruit exports. It finds that the FTAs have been important instruments for providing increased market access for Chilean products based on both an econometric analysis and structured surveys of exporters. While the impacts on profits were not considered to very significant according to exporters, the agreements are considered necessary to maintain a level playing field with Chile’s competitors. Both SAG, Chile’s plant and animal health authority, and Pro-Chile, Chile’s export promotion agency, were viewed as essential to promoting Chile’s reputation as an exporter of quality products. Interviews with trade associations covering a wide range of export products, found that while the FTAs provided entry points into markets, actual market access did not always benefit all sectors equally. Keywords: agricultural trade impacts, exporter surveys and tariff concessions, free trade agreements, fruit exports Creation-Date: 2013-10-08 Number: 64 Handle: RePEc:oec:agraaa:64-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jean Christophe Bureau Author-Workplace-Name: AgroParisTech Author-Name: Sébastien Jean Author-Workplace-Name: Institut national de la recherche agronomique Title: The Impact of Regional Trade Agreements on Trade in Agricultural Products Abstract: Trade flows are significantly affected by the trade agreements both with respect to impacts on pre-existing trade flows, (intensive margin) and on new, previously non-existent trade flows (extensive margin). The effect of the Regional Trade Agreements on pre-existing trade flows are found to be significant with a mean elasticity of substitution at the product level of about 2 so that a 1% preferential margin increases trade by only 2% on average. Total bilateral exports are found to be increased by 18% on average for products benefiting from a preferential margin between 5 and 10%, and by 48% for products where the margin exceeds 10%. The effect of an RTA agreement on extensive margin is to increase the probability to export a given a product to a partner country by one percentage point on average. Furthermore preferential margins, as measured through their impact on tax-inclusive consumer prices, nearly double within eight years of entry into force rising from 4.7% to 8.9% on average. Keywords: agricultural trade, econometric estimates, extensive and intensive margins, preferential margins, regional trade agreements Creation-Date: 2013-10-09 Number: 65 Handle: RePEc:oec:agraaa:65-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gang Liu Author-Workplace-Name: Norwegian University of Science and Technology Title: Food Losses and Food Waste in China: A First Estimate Abstract: Reducing food losses and food waste is attracting growing public attention at the international, regional, and national levels, and is widely acknowledged to contribute to abating interlinked sustainability challenges such as food security, climate change, and water shortage. However, the pattern and scale of food waste throughout the supply chain remains poorly understood for developing countries such as China, despite growing media coverage and public concerns in recent years. The data in the literature are either out of date or fragmented. This report presents estimates of food losses and food waste in China, based on literature data, informed estimates, and other publicly available information. Classification-JEL: Q18; Q53; Q58 Keywords: agricultural losses, China, data, food loss, food value chain, food waste, food waste reduction, grain storage, municipal solid waste, policy information Creation-Date: 2014-04-03 Number: 66 Handle: RePEc:oec:agraaa:66-EN Template-type: ReDIF-Paper 1.0 Author-Name: Eugenio Diaz-Bonilla Author-Workplace-Name: International Food Policy Research Institute Author-Name: David Orden Author-Workplace-Name: International Food Policy Research Institute Author-Name: Andrzej Kwieciński Author-Workplace-Name: OECD Title: Enabling Environment for Agricultural Growth and Competitiveness: Evaluation, Indicators and Indices Abstract: The key contribution of this report lies in developing a typology to structure the components of the enabling environment for agricultural growth and competitiveness, and in constructing an illustrative Agricultural Growth Enabling Index (AGEI) to summarise a wide array of available information in a coherent manner. The construction of the preliminary AGEI is based on four blocks with 40% of the weight on agriculture/rural factors and 20% each on broader economy-wide governance, capital availability and market operation. The AGEI can be used to provide across-country comparisons or single-country evaluations using the index itself or its components. It allows the decomposition within each main block to show the relative strength and weaknesses of each country across various sub-indices. It has been applied here to a selected set of twenty emerging and developing countries. The preliminary results demonstrate that the AGEI brings together information relevant to the enabling environment for agricultural growth and competitiveness, and which is largely consistent with more in-depth studies of the selected countries. While constrained in some respects, the AGEI appears to be the first index completed with this objective. Further expansion and refinement of the included set of indicators to better reflect key determinants of agriculture’s enabling environment would help provide an important input into better policy decisions. Classification-JEL: O13; Q10; Q18 Keywords: agricultural growth and competitiveness, agricultural indicators and indices, agricultural performance, agricultural policy, agricultural productivity, determinants of agricultural growth, typology Creation-Date: 2014-05-05 Number: 67 Handle: RePEc:oec:agraaa:67-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Rushton Author-Workplace-Name: Royal Veterinary College Author-Name: Jorge Pinto Ferreira Author-Workplace-Name: SAFOSO Author-Name: Katharina D. C. Stärk Author-Workplace-Name: SAFOSO Title: Antimicrobial Resistance: The Use of Antimicrobials in the Livestock Sector Abstract: The use of antimicrobials in livestock production provides a basis for improving animal health and productivity. This in turn contributes to food security, food safety, animal welfare, protection of livelihoods and animal resources. However, there is increasing concern about levels of antimicrobial resistance in bacteria isolated from human, animal, food and environmental samples and how this relates to use of antimicrobials in livestock production. The report examines antimicrobial usage in livestock and its impact on public health and the food economy. Policy issues and knowledge gaps to manage antimicrobial use and the risk of antimicrobial resistance are identified and discussed. Keywords: animal health, animal productivity, antibiotics, antimicrobials, growth promoters Creation-Date: 2014-10-09 Number: 68 Handle: RePEc:oec:agraaa:68-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin von Lampe Author-Workplace-Name: OECD Author-Name: Aikaterini Kavallari Author-Workplace-Name: LEI-WUR Author-Name: Heleen Bartelings Author-Workplace-Name: LEI-WUR Author-Name: Hans van Meijl Author-Workplace-Name: LEI-WUR Author-Name: Martin Banse Author-Workplace-Name: Thünen Institute Author-Name: Joanna Ilicic-Komorowska Author-Workplace-Name: OECD Author-Name: Franziska Junker Author-Workplace-Name: Thünen Institute Author-Name: Frank van Tongeren Author-Workplace-Name: OECD Title: Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain: Implications for Agricultural Markets and Farm Incomes Abstract: This report analyses policies along the agricultural supply chain, in particular support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and Biofuel Support Policies Database that covers polices in 48 countries (including the EU and its Members) and assesses the market effects of these policies with a computable general equilibrium model, MAGNET. This report finds that biofuel support policies generate additional demand for feedstock commodities and, therefore, higher incomes for crop farmers in subsidising and non-subsidising countries. In contrast, these policies increase costs to downstream industries, including livestock farmers, and to consumers. Fertiliser support policies reduce crop production costs and hence increase yields, production and incomes for crop farmers in subsidising countries. However, they lower crop farm incomes abroad, while livestock farmers in both country groups face lower feed costs and, in consequence, lower livestock prices. Classification-JEL: D58; O13; Q11; Q17; Q18; Q42 Keywords: agricultural markets, agriculture, biofuel markets, biofuel support policies, computable general equilibrium model, energy prices, farm incomes, fertiliser markets, fertiliser support policies, land use, quantitative analysis Creation-Date: 2014-11-28 Number: 69 Handle: RePEc:oec:agraaa:69-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ada Ignaciuk Author-Workplace-Name: OECD Author-Name: Daniel Mason-D'Croz Author-Workplace-Name: International Food Policy Research Institute Title: Modelling Adaptation to Climate Change in Agriculture Abstract: This paper investigates how climate change can affect agricultural production and proposes some adaptation measures that could be undertaken to mitigate the negative effects of climate change while enhancing the positive ones. The paper stresses the importance of planned adaptation measures and highlights possible strategies for reducing risk and improving resilience. To quantify the possible effects of climate change and the effects of adaptation measures this study uses the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT). The analysis first explores the potential effects of climate change on yields and prices. It then goes on to analyse the potential impacts of two distinctive sets of adaptation strategies on yields, prices, and food security, namely: i) research and development (to develop new crop varieties that are better suited to changed climate conditions) and ii) changes in irrigation technology. Last, the analysis in this paper estimates the public and private investment needs in research and development (R&D) for developing new crop varieties, and further develops estimates of the cost of improving irrigation technologies in OECD countries. Classification-JEL: Q18; Q54; Q58 Creation-Date: 2014-12-22 Number: 70 Handle: RePEc:oec:agraaa:70-EN Template-type: ReDIF-Paper 1.0 Author-Name: Morvarid Bagherzadeh Author-Workplace-Name: OECD Author-Name: Mitsuhiro Inamura Author-Workplace-Name: OECD Author-Name: Hyunchul Jeong Author-Workplace-Name: OECD Title: Food Waste Along the Food Chain Abstract: Reducing food losses and food waste is attracting growing public attention at the international, regional, and national levels, and is widely acknowledged to contribute to abating interlinked sustainability challenges such as food security, climate change, and water shortage. However, the pattern and scale of food waste throughout the supply chain remains poorly understood, despite growing media coverage and public concerns in recent years. This paper takes stock of available data on food waste and explores policies related to food waste in OECD countries. Classification-JEL: Q18; Q53; Q58 Keywords: agricultural losses, data, food loss, food value chain, food waste, food waste reduction, grain storage, municipal solid waste, policy information Creation-Date: 2014-12-22 Number: 71 Handle: RePEc:oec:agraaa:71-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Author-Name: Markku Ollikainen Author-Workplace-Name: University of Helsinki Author-Name: Elizabeth Marshall Author-Workplace-Name: United States Department of Agriculture Author-Name: Marcel Aillery Author-Workplace-Name: United States Department of Agriculture Title: Environmental Co-benefits and Stacking in Environmental Markets Abstract: This paper investigates farmers’ incentives to participate voluntarily in carbon offset markets when environmental credit stacking is allowed, that is, farmers can stack water quality credits with carbon credits. The implications of stacking on additionality of environmental services in interlinked markets, market participation rates, and market equilibrium prices are analysed by developing a conceptual framework of environmental credit stacking, which is applied with data estimates for the US Corn Belt. Analysis shows that credit stacking increases farmers’ participation in carbon offset markets, and that such increased participation provides additionality in environmental service provision. It is further shown that ecosystem markets are interlinked so that credit price changes in one market will shift credit supply in another market, thus affecting equilibrium prices. Empirical application of the framework shows that provision of CO2-eq offsets through reductions of nitrogen application or through the establishment of green set-asides is not profitable without water quality credits. A conversion from conventional tillage and reduced tillage to no-till is profitable in some cases, although current low carbon offset prices and transaction costs have a significant negative impact on the number of participating parcels. When farmers are allowed to stack water quality credits the profitability of carbon sequestration practices increases. Reduced nitrogen application levels becomes a profitable option and 21% of field parcels - representing 4.6 million acres- participate in the market with water quality credit prices at base levels of USD 3/lb for N and USD 4/lb for P. The establishment of green set-aside and streamside buffer strips becomes profitable in the lower productivity and highly erodible lands with base prices of nutrient credits. If water quality trading markets are small then high participation rates among farmers may result in an oversupply of nutrient credits and as a consequence equilibrium credit prices and farmers’ credit revenue would decrease. Classification-JEL: Q53; Q54; Q57; Q58 Keywords: additionality, carbon offset, interlinked environmental markets, nutrient credit, transaction costs Creation-Date: 2015-02-06 Number: 72 Handle: RePEc:oec:agraaa:72-EN Template-type: ReDIF-Paper 1.0 Author-Name: Douglas C. Lippoldt Author-Workplace-Name: OECD Title: Innovation and the Experience with Agricultural Patents Since 1990: Food for Thought Abstract: This report considers developments in agricultural patents since 1990 and their economic implications. It first provides an overview of the international framework for intellectual property protection and of the general trends in the stringency of protection in OECD countries. It then presents developments in the number of patents originating from OECD and other countries that are granted in Europe and the United States, for all fields and for agriculture and food technologies. These illustrate the leading role played by OECD countries in the provision of successful applications, although non-OECD countries increased their share of the total between 1990 and 2010. Finally, econometric analysis is used to assess the relationships between patenting and selected indicators of innovation and economic performance. The results points to favourable economic developments associated with the patent reforms in the recent decades. Classification-JEL: O34; Q16; Q17 Keywords: agriculture, innovation, intellectual property protection, intellectual property rights, patents, performance Creation-Date: 2015-02-23 Number: 73 Handle: RePEc:oec:agraaa:73-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Title: Agricultural Specific Trade Facilitation Indicators: An Overview Abstract: Trade facilitation matters. Estimates of trade friction costs from border and custom procedures are relatively high. Trade facilitation to allow for the speedy movement of traded goods may be more important for agricultural, especially perishable, products than for other goods because of their time sensitivity, especially for developing countries. Data suggest that many countries across the geographic and income spectrum have improved their performance on several trade facilitation variables. Concurrently, agricultural trade has grown substantially, especially from low and lower middle income countries. The data suggest that further improvements to trade facilitation in many low and lower middle income countries are needed for them to catch up with best practices. Impediments to trade remain, as indicated by the relatively high tariff equivalent of trade costs, especially on agricultural products. Keywords: agricultural trade, developing countries, perishable products, sanitary and phytosanitary standards, trade facilitation, trading time Creation-Date: 2015-03-04 Number: 74 Handle: RePEc:oec:agraaa:74-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koki Okawa Author-Workplace-Name: OECD Title: Market and Trade Impacts of Food Loss and Waste Reduction Abstract: This report provides a forward looking analysis of the market and trade impacts of food loss and waste reduction, based on the latest projections for world and national agricultural markets provided by the Aglink-Cosimo model for the ten-year period 2014-23. The study applies FAO estimates of producer loss and consumer waste, which are reduced by 20% over ten years, on the assumption that those reductions can be achieved without cost. In global terms, greater impacts on international markets come from contractions in demand via reduced waste than from the stimulus to supply from lower losses. Savings to consumers total more than USD 2.5 trillion over ten years. Reduced crop losses in developing countries lead to higher crop supply in these countries, with reduced prices from efficiency gains benefiting both developing and developed countries. Classification-JEL: Q10; Q11; Q17 Keywords: Aglink-Cosimo model, agricultural commodity market, food waste Creation-Date: 2015-03-05 Number: 75 Handle: RePEc:oec:agraaa:75-EN Template-type: ReDIF-Paper 1.0 Author-Name: Andrew Parry Author-Workplace-Name: Waste and Resources Action Programme Author-Name: Paul Bleazard Author-Workplace-Name: DEFRA Author-Name: Koki Okawa Author-Workplace-Name: OECD Title: Preventing Food Waste: Case Studies of Japan and the United Kingdom Abstract: This report contains case studies of food loss and waste policy practices in Japan and the United Kingdom. The Japanese case study examines the goals, measurements, achievements and future challenges of the country’s food loss and waste policies. The Japanese government has implemented policies to suppress and recycle food loss and waste since 2000 under its Food Recycling Law. The control of food waste generation is based on a specific target for each industry group, in order to address differences in the scope for loss and waste reduction across sectors. While food waste in the food industry has been reduced, the waste at consumer stage has shown no change in recent years, highlighting outstanding challenges at the consumer stage. Preventing food waste has been a priority for Governments in the United Kingdom for over a decade, and a range of mechanisms have been put in place to deliver this within households, hospitality and food service, food manufacture, retail and wholesale sectors. The UK case study outlines the policy context within which food waste prevention sits, explains how food waste is defined in the United Kingdom, provides detail on the level and types of food waste across different sectors, and describes the interventions adopted and their impacts. Between 2007 and 2012 household food waste reduced by 15%, despite a 4% increase in household numbers, and food waste at manufacture and retail fell by 10% between 2009 and 2012. There is significant potential to reduce food waste further, however it is likely that this will become increasingly challenging. Classification-JEL: Q10; Q13; Q18 Keywords: Courtauld Commitment, food waste, Japan, Love Food Hate Waste, United Kingdom Creation-Date: 2015-03-05 Number: 76 Handle: RePEc:oec:agraaa:76-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Author-Name: Alan Matthews Author-Workplace-Name: Trinity College Dublin Title: Trade Dimensions of Food Security Abstract: This report examines the different channels through which trade openness (and reforms to achieve it) can affect a country’s food security. The overall conclusion is that trade openness has a positive net impact on food security, although specific constituencies, including some poor households, could see their immediate food security threatened by the withdrawal of trade protection. The challenge for policymakers is to design flanking policies which enable countries to reap aggregate gains yet mitigate specific losses. Those policies include social protection and the provision of risk management tools, allied with investments in productivity so that average incomes rise to the extent that any adverse shock to incomes is unlikely to jeopardise food security. Developing countries are increasingly able to deploy such targeted instruments. Lessons are also being learned with respect to the political economy of trade reform, such that changes can be introduced in a way that minimises adjustment stresses and helps build the consensus needed to lock in the benefits of trade policy reform. Classification-JEL: F10; F13; F14; Q17; Q18 Keywords: agriculture, food security, liberalisation, trade Creation-Date: 2015-02-23 Number: 77 Handle: RePEc:oec:agraaa:77-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ramanan Laxminarayan Author-Workplace-Name: Center for Disease Dynamics, Economics and Policy Author-Name: Thomas Van Boeckel Author-Workplace-Name: Princeton University Author-Name: Aude Teillant Author-Workplace-Name: Princeton University Title: The Economic Costs of Withdrawing Antimicrobial Growth Promoters from the Livestock Sector Abstract: Antimicrobials have been used in human medicine and in livestock production for more than 60 years, improving human and animal health but also fostering the emergence and spread of antimicrobial resistant pathogens worldwide. This report focuses on the specific issue of the economic value of antimicrobial growth promoters (AGPs) to producers and consumers. After estimating orders of magnitude of current antimicrobial consumption in livestock globally, the report investigates the potential effects of restricting AGPs on livestock production globally. The growth response to AGPs appears to be small in optimised production systems, suggesting that the economic impacts of a ban on AGPs could be limited in high-income industrialized countries but potentially higher in lower income countries with less developed hygiene and production practices. With no major changes in policy, global consumption of antimicrobials in food-producing animals is projected to rise by two-thirds by 2030, with the majority of that increase occurring in emerging economies where the demand for livestock products, especially poultry, is growing fastest. Keywords: AGPs, animal health, animal productivity, antibiotics, antimicrobial consumption, antimicrobial growth promoters, antimicrobial projections, antimicrobial resistance, antimicrobials, economic value, food animal, global mapping, livestock growth promotion Creation-Date: 2015-02-23 Number: 78 Handle: RePEc:oec:agraaa:78-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Regional trade agreements and agriculture Abstract: Regional Trade Agreements (RTAs) are key instruments to governing international trade, and reflect a balance between political and economic objectives. The level of liberalisation in the agriculture sector can differ substantially across negotiated agreements, and even across products within the same agreement. This paper synthesises the results of the analyses found in previous OECD studies on the agricultural component of some 53 RTAs. It identifies those components that can be trade constraining and explores ways in which future RTAs can facilitate trade. It finds that market access could be improved under an RTA by removing limitations on tariff concessions, harmonising rules of origin, limiting the use of special safeguards to those allowed by the WTO-AoA, prohibiting export subsidies and other export restrictions except as permitted by Article XI of WTO_GATT, and implementing core SPS principles. Classification-JEL: F1; F13; Q10; Q23 Keywords: agriculture, regional trade agreements, safeguards, SPS measures, tariff elimination Creation-Date: 2015-03-01 Number: 79 Handle: RePEc:oec:agraaa:79-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Pannell Author-Workplace-Name: University of Western Australia Author-Name: Anna Roberts Author-Workplace-Name: Natural Decisions Pty Ltd Title: Public goods and externalities: Agri-environmental Policy Measures in Australia Abstract: Agriculture is a provider of commodities such as food, feed, fibre and fuel and, it can also bring both positive and negative impacts on the environment such as biodiversity, water and soil quality. These environmental externalities from agricultural activities may also have characteristics of non-rivalry and non-excludability. When they have these characteristics, they can be defined as agri-environmental public goods. Agri-environmental public goods need not necessarily be desirable; that is, they may cause harm and can be defined as agri-environmental public bads. Public Goods and Externalities: Agri-environmental Policy Measures in Australia aims to improve the understanding of best policy measures to provide agri-environmental public goods and reduce agri-environmental public bads by looking at the experience of Australia. This report provides information to contribute to policy design addressing the provision of agri-environmental public goods including the reduction of agri-environmental public bads. It is one of the five country case studies (Australia, Japan, Netherlands, United Kingdom, and United States), which provide inputs into the main OECD book, Public goods and externalities: Agri-environmental policy measures in selected OECD countries. Classification-JEL: Q52; Q53; Q54; Q55; Q56; Q57; Q58 Keywords: agri-environmental policies, Australia, externalities, public goods Creation-Date: 2015-06-01 Number: 80 Handle: RePEc:oec:agraaa:80-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tetsuya Uetake Author-Workplace-Name: OECD Title: Public goods and externalities: Agri-environmental Policy Measures in Japan Abstract: Agriculture is a provider of commodities such as food, feed, fibre and fuel and, it can also bring both positive and negative impacts on the environment such as biodiversity, water and soil quality. These environmental externalities from agricultural activities may also have characteristics of non-rivalry and non-excludability. When they have these characteristics, they can be defined as agri-environmental public goods. Agri-environmental public goods need not necessarily be desirable; that is, they may cause harm and can be defined as agri-environmental public bads. Public Goods and Externalities: Agri-environmental Policy Measures in Japan aims to improve understanding of the best policy measures to provide agri-environmental public goods and reduce agri-environmental public bads by looking at the experiences of Japan. This report provides information to contribute to policy design that addresses the provision of agri-environmental public goods, including the reduction of agri-environmental public bads. It is one of five country case studies (Australia, the Netherlands, United Kingdom, and United States) which provide input into the main OECD book, Public goods and externalities: Agri-environmental policy measures in selected OECD countries Classification-JEL: Q52; Q53; Q54; Q55; Q56; Q57; Q58 Keywords: agri-environmental policies, externalities, Japan, public goods Creation-Date: 2015-06-01 Number: 81 Handle: RePEc:oec:agraaa:81-EN Template-type: ReDIF-Paper 1.0 Author-Name: Raymond Schrijver Author-Workplace-Name: Wageningen UR Alterra Landscape Centre Author-Name: Tetsuya Uetake Author-Workplace-Name: OECD Title: Public goods and externalities: Agri-environmental Policy Measures in the Netherlands Abstract: Agriculture is a provider of commodities such as food, feed, fibre and fuel and, it can also bring both positive and negative impacts on the environment such as biodiversity, water and soil quality. These environmental externalities from agricultural activities may also have characteristics of non-rivalry and non-excludability. When they have these characteristics, they can be defined as agri-environmental public goods. Agri-environmental public goods need not necessarily be desirable; that is, they may cause harm and can be defined as agri-environmental public bads. Public Goods and Externalities: Agri-environmental Policy Measures in the Netherlands aims to improve our understanding of the best policy measures to provide agri-environmental public goods and reduce agri-environmental public bads, by looking at the experiences of the Netherlands. This report provides information to contribute to policy design addressing the provision of agri-environmental public goods including the reduction of agri-environmental public bads. It is one of the five country case studies (Australia, Japan, Netherlands, United Kingdom, and United States), which provide inputs into the main OECD book, Public Goods, Externalities and Agri-environmental Policy Measures in Selected OECD Countries. Keywords: agri-environmental policies, externalities, Netherlands, public goods Creation-Date: 2015-06-01 Number: 82 Handle: RePEc:oec:agraaa:82-EN Template-type: ReDIF-Paper 1.0 Author-Name: James Jones Author-Workplace-Name: Cumulus Consultants Ltd Author-Name: Paul Silcock Author-Workplace-Name: Cumulus Consultants Ltd Author-Name: Tetsuya Uetake Author-Workplace-Name: OECD Title: Public Goods and Externalities: Agri-environmental Policy Measures in the United Kingdom Abstract: Agriculture is a provider of commodities such as food, feed, fibre and fuel and, it can also bring both positive and negative impacts on the environment such as biodiversity, water and soil quality. These environmental externalities from agricultural activities may also have characteristics of non-rivalry and non-excludability. When they have these characteristics, they can be defined as agri-environmental public goods. Agri-environmental public goods need not necessarily be desirable; that is, they may cause harm and can be defined as agri-environmental public bads. Public Goods and Externalities: Agri-environmental Policy Measures in the United Kingdom aims to improve our understanding of the best policy measures to provide agri-environmental public goods and reduce agri-environmental public bads, by looking at the experiences of the United Kingdom. This report provides information to contribute to policy design addressing the provision of agri-environmental public goods including the reduction of agri-environmental public bads. It is one of the five country case studies (Australia, Japan, Netherlands, United Kingdom, and United States), which provide inputs into the main OECD book, Public Goods, Externalities and Agri-environmental Policy Measures in Selected OECD Countries. Keywords: agri-environmental policies, externalities, public goods, United Kingdom Creation-Date: 2015-06-04 Number: 83 Handle: RePEc:oec:agraaa:83-EN Template-type: ReDIF-Paper 1.0 Author-Name: James S. Shortle Author-Workplace-Name: Pennsylvania State University Author-Name: Tetsuya Uetake Author-Workplace-Name: OECD Title: Public Goods and Externalities: Agri-environmental Policy Measures in the United States Abstract: Agriculture is a provider of commodities such as food, feed, fibre and fuel and, it can also bring both positive and negative impacts on the environment such as biodiversity, water and soil quality. These environmental externalities from agricultural activities may also have characteristics of non-rivalry and non-excludability. When they have these characteristics, they can be defined as agri-environmental public goods. Agri-environmental public goods need not necessarily be desirable; that is, they may cause harm and can be defined as agri-environmental public bads. Public Goods and Externalities: Agri-environmental Policy Measures in the United States aims to improve our understanding of the best policy measures to provide agri-environmental public goods and reduce agri-environmental public bads, by looking at the experiences of the United States. This report provides information to contribute to policy design addressing the provision of agri-environmental public goods including the reduction of agri-environmental public bads. It is one of the five country case studies (Australia, Japan, Netherlands, United Kingdom, and United States), which provide inputs into the main OECD book, Public Goods, Externalities and Agri-environmental Policy Measures. Classification-JEL: Q52; Q53; Q54; Q56; Q57; Q58 Keywords: agri-environmental policies, externalities, public goods, United States Creation-Date: 2015-06-04 Number: 84 Handle: RePEc:oec:agraaa:84-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ada Ignaciuk Author-Workplace-Name: OECD Title: Adapting Agriculture to Climate Change: A Role for Public Policies Abstract: Farmers will undertake many adaptation actions to meet changing climate conditions and will often do so without any government intervention. However, when such actions provide both private and public benefits, the public sector may play a role in how these are developed. This report aims to establish a framework to help identify specific actions that governments could take in this respect and that could avoid sending signals leading to non-adaptation or maladaptation. This report begins with a review of national adaptation strategies for the agricultural sector in OECD countries and highlights different approaches undertaken by governments. It then identifies the main criteria under which governments may take action to increase the resilience of the agricultural sector and its adaptive capacity to climate change. Finally, it discusses strategies to monitor and evaluate adaptation policies. Classification-JEL: Q52; Q53; Q54; Q55; Q56; Q57; Q58 Keywords: adaptation of the agricultural sector, adaptation strategies, adaptation to climate change, monitoring and evaluation of adaptation, Public policies Creation-Date: 2015-06-05 Number: 85 Handle: RePEc:oec:agraaa:85-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sylvain Rousset Author-Workplace-Name: OECD Author-Name: Koen Deconinck Author-Workplace-Name: OECD Author-Name: Hyunchul Jeong Author-Workplace-Name: OECD Author-Name: Martin von Lampe Author-Workplace-Name: OECD Title: Voluntary environmental and organic standards in agriculture: Policy implications Abstract: While public regulation in food and agriculture is attracting attention at both policy and research level for their potential implications on international food trade, policy implications of agricultural standards – understood to be legally not mandatory and hence voluntary – are much less well understood. Yet, environmental and organic standards have grown in importance in agriculture and agri-food chains, making also their potential trade effects more relevant. In this context, understanding the linkages between governments and standards has become a key element in the debate. This report analyses possible roles of public authorities in the area of environmental and organic standards, including policy objectives, options for interaction and means for the use of standards for achieving public policy goals. It identifies the main objectives behind government activity on environmental and organic standards in the area of consumer protection and fraud prevention, the enabling of functioning food markets and the improvement of efficiency in the design, implementation and monitoring of public policies. Countries have taken very different approaches towards dealing with standards on organic agriculture which frequently, though not always, are seen as a subset of environment-related standards. Choices for organic standards range between market self-regulation and the development of government-owned public standards. More generally, the level of public intervention often reflects OECD governments’ perception on the environmental benefits of organic agriculture itself. Classification-JEL: M38; Q13; Q17; Q58 Keywords: agricultural trade, environmental policies, environmental standards Creation-Date: 2015-08-06 Number: 86 Handle: RePEc:oec:agraaa:86-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Johannes Sauer Author-Workplace-Name: Technical University of Munich Title: Dynamics of dairy farm productivity growth: Cross-country comparison Abstract: This report compares the dynamics of productivity growth in the last decade in the dairy farm sector of three EU Member States: Estonia, the Netherlands and the United Kingdom (England and Wales). The evolution of the dairy farm sector in these countries is characterised by a decline in the number of dairy farms and an increase in the average herd size per farm. Policy factors have a strong impact on productivity growth at the farm. In Estonia, the dairy farm sector has expanded significantly in recent years and the productivity growth of the sector is led largely by a resource reallocation in favour of a small number of large and productive farms. In the Netherlands, the dairy farm sector adjusted to the different policy environments over time and the productivity growth of the sector is driven largely by productivity improvement at the farm level through technological adoption and efficient resource use. In the United Kingdom, productivity growth comes from the exit of smaller farms and farm size expansion of the remaining farms. Classification-JEL: D24; O33; Q12; Q18 Keywords: productivity, resource allocation Creation-Date: 2015-08-06 Number: 87 Handle: RePEc:oec:agraaa:87-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jo H. M. Wijnands Author-Workplace-Name: LEI-WUR Author-Name: Siemen van Berkum Author-Workplace-Name: LEI-WUR Author-Name: David Verhoog Author-Workplace-Name: LEI-WUR Title: Measuring Competitiveness of Agro-Food Industries: The Swiss Case Abstract: This paper presents an assessment of the competiveness performance of Swiss food industries. The approach taken here is to measure revealed performance, relying on indicators such as market performance, trade success and revealed comparative advantage indicators. The analysis of competitiveness examines the ex post performance of the industry in Switzerland compared to the same industry in benchmark countries in the European Union. Classification-JEL: L6; L66 Keywords: agro-food industry, Switzerland Creation-Date: 2015-08-01 Number: 88 Handle: RePEc:oec:agraaa:88-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michael MacLeod Author-Workplace-Name: Scotland’s Rural College Author-Name: Vera Eory Author-Workplace-Name: Scotland’s Rural College Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Title: Cost-Effectiveness of Greenhouse Gas Mitigation Measures for Agriculture: A Literature Review Abstract: This paper reviews the international literature on the cost-effectiveness of supply-side mitigation measures that can reduce the emissions intensity of agriculture while maintaining or increasing production. Sixty-five recent international studies of cost-effectiveness covering 181 individual activities are reviewed. Nine case studies of well covered mitigation measures, generally using a cost-engineering approach, illustrate significant differences in the cost-effectiveness of measures across countries and studies, in part due to contextual differences. Although caution needs to be exercised in comparing heterogeneous studies, the results suggest that measures based on fertiliser use efficiency, cattle breeding, and potentially improving energy efficiency in mobile machinery, are often considered highly cost-effective mitigation measures across countries. A preliminary overview of policy highlights the existence of a range of options to encourage the adoption of cost-effective measures, from information to incentive-based policies. Further analysis is needed to address remaining estimation challenges and to help determine how mitigation measures may be embedded into broader climate, agricultural and environmental policy frameworks. Classification-JEL: Q16; Q52; Q54; Q58 Keywords: agricultural, climate change, cost-effectiveness, greenhouse gas mitigation Creation-Date: 2015-08-01 Number: 89 Handle: RePEc:oec:agraaa:89-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dalila Cervantes-Godoy Author-Workplace-Name: OECD Title: Strategies for Addressing Smallholder Agriculture and Facilitating Structural Transformation Abstract: This report aims to identify the main constraints that limit smallholders in emerging countries from accessing markets. It does this first through a literature review of economic development theory and findings from past empirical studies. It then looks at different policy instruments currently used in five countries: Brazil, Chile, Indonesia, Mexico and South Africa. The results suggest that the focus of agricultural policies in these five countries has been on input use subsidies, whether these are for variable input use, fixed capital formation, or on-farm services. Agricultural policies that strengthen the broader enabling environment (general services or public goods) are very limited in most countries covered in this report. Empirical evidence suggests that policies that best support the integration of smallholders into markets include investments in general services for the sector, as well as policies that reinforce land tenure systems or those that promote farmer associations. Classification-JEL: O13; Q1; Q18 Keywords: agricultural policy, emerging economies, smallholders Creation-Date: 2015-09-01 Number: 90 Handle: RePEc:oec:agraaa:90-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mitsuhiro Inamura Author-Workplace-Name: OECD Author-Name: Jonathan Rushton Author-Workplace-Name: Royal Veterinary College Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Risk Management of Outbreaks of Livestock Diseases Abstract: Livestock diseases can severely harm animal and human health, and have adverse economic impacts on producer incomes, markets, trade, and consumers. This paper develops a common framework to improve information on public actions and policies to manage outbreaks of livestock diseases across countries. The main aim is to facilitate the assessment of the effectiveness and efficiency of different policy responses to disease outbreaks. A pilot database covering four livestock diseases (avian influenza, bovine spongiform encephalopathy, classical swine fever, and foot and mouth disease) in nine countries (Canada, Denmark, France, Germany, Hungary, Japan, Mexico, the Netherlands, and the United Kingdom) was constructed. It combines three layers of data: epidemiological factors; government control and compensation measures; and economic impacts of disease outbreaks. Policy responses to outbreaks were reviewed based on the information generated from the data analysis. The results show that government expenditures to destroy pathogens via slaughter and compensation policy measures were very expensive, especially in the case of large or prolonged outbreaks, and that measures compensating financial losses at the farm level generated the highest share of government expenditures in the short run. Classification-JEL: Q18 Keywords: agricultural policy, animal health, risk management Creation-Date: 2015-10-26 Number: 91 Handle: RePEc:oec:agraaa:91-EN Template-type: ReDIF-Paper 1.0 Author-Name: Catherine Moreddu Author-Workplace-Name: OECD Title: Public-Private Partnerships for Agricultural Innovation: Lessons From Recent Experiences Abstract: Public-Private Partnerships (PPPs) are increasingly used in agricultural innovation to leverage public funds, enhance efficiency, and improve the adaptation of innovation to demand so as to foster wider and faster diffusion. For governments, PPPs for innovation are but one policy option, whose costs and benefits need to be compared with those of other options. Governments have put in place a policy and regulatory environment to facilitate the development of PPPs for innovation, including financing mechanisms and Intellectual Property (IP) protection. Most programmes are not specific to the food and agriculture system, but apply to the economy-wide innovation system. The main a priori conditions for forming a successful partnership between public and private participants are existence of common objectives, sharing of mutual benefits, and complementarity of human and financial resources. Institutional arrangements need to be clear, but the degree of formality can vary. Elements of good governance include setting clear objectives and rules, and implementing regular monitoring and evaluation that use well-established, open and competitive processes to select PPPs for public participation. Transparency is desirable at all stages of implementation. Improving partners’ capacity to design, manage and participate in PPPs is an important factor of success, and is particularly relevant for agricultural innovation. Classification-JEL: O31; O38; Q16 Keywords: agricultural innovation, governance, public-private partnerships, research funding Creation-Date: 2016-01-28 Number: 92 Handle: RePEc:oec:agraaa:92-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Title: Alternative Payment Approaches for Biodiversity Conservation in Agriculture Abstract: Biodiversity conservation and sustainable use policies implemented in OECD countries could be made more environmentally effective and cost-effective. Several policy innovations could change this, however. To test this, a theoretical framework was developed to describe farmers’ participation in government payment programmes that enhance semi-natural wildlife habitats on farmland. The types of payments analysed here include: uniform payments; three types of conservation auctions with environmental targeting; uniform payment with environmental targeting; and two types of differentiated payments with environmental targeting. Quantitative results show that uniform payments are less efficient than other payment types, and that auctions with environmental targeting are the most cost-effective option. However, if farmers have knowledge of the environmental value of their offer, the cost-effectiveness of auctions decreases because they tend to increase their bids to benefit from this information rent (overcompensating income forgone). Adding environmental targeting to the uniform payment policy greatly improves the cost-effectiveness of uniform payment. The analysis clearly shows that, when targeted payments are implemented, the gains from environmental targeting are large and exceed the increase in policy-related transaction costs. Classification-JEL: Q57; Q58 Keywords: Conservation auction, differentiated payment, policy-related transaction costs, targeting, uniform payment Creation-Date: 2016-04-01 Number: 93 Handle: RePEc:oec:agraaa:93-EN Template-type: ReDIF-Paper 1.0 Author-Name: Raushan Bokusheva Author-Workplace-Name: OECD Author-Name: Shingo Kimura Author-Workplace-Name: OECD Title: Cross-Country Comparison of Farm Size Distribution Abstract: This report summarises selected measures of the farm size distribution for fourteen OECD countries: Canada, Estonia, France, Germany, Ireland, Italy, Japan, Korea, Latvia, the Netherlands, Norway, Sweden, the United Kingdom (England) and the United States over the period 1995-2010. The farm size statistics are presented for four major production systems: crop, dairy, cattle and pig farming. The report documents consolidation of agricultural production in large-scale farms in most countries and sub-sectors covered by the report. Nevertheless, farm size growth rates show substantial differences across countries and periods which underlines the importance of country-specific natural, social, and economic conditions and the regulatory and policy environment for the evolution of farm structures. Increased inequality in farm size distributions, as captured using Gini coefficients, indicates a trend towards more polarized farm structures. Classification-JEL: D30; L11; Q12; Q18 Keywords: agriculture, farm size distribution, structural change Creation-Date: 2016-07-14 Number: 94 Handle: RePEc:oec:agraaa:94-EN Template-type: ReDIF-Paper 1.0 Author-Name: Grégoire Tallard Author-Workplace-Name: OECD Author-Name: Peter S. Liapis Author-Workplace-Name: OECD Author-Name: Graham Pilgrim Author-Workplace-Name: OECD Title: The Implications of Agricultural Trade and Market Developments for Food Security Abstract: Reducing hunger and undernourishment is a global priority and the Sustainable Development Goals (SDGs) have the ambitious target of eradicating hunger entirely by 2030. Using the OECD-FAO Agricultural Outlook to 2024, this paper provides projections on the availability of calories at the national level, for the number of persons undernourished, and for the proportion of undernourishment (PoU) that are consistent with the market projections of the Outlook’s baseline. It also considers the impact on undernourishment of four alternative scenarios: faster income growth relative to the baseline in developing countries; stronger growth in agricultural productivity; a combination of a faster income growth with a stronger productivity growth; and finally a more equitable access to available food supplies. Under the baseline, the global PoU is projected to fall from 11% to 8% over ten years, with Latin America as a whole dipping under the 5% threshold at which the FAO considers hunger to be effectively eradicated. The PoU falls from 12% to 8% in Asia and the Pacific and from 23% to 19% in Sub-Saharan Africa. The global total of undernourished people declines from 788 million to 636 million. The number of undernourished individuals fall the most in Asia. Higher income growth or more productive agriculture removes more people from the ranks of the undernourished, but in most cases, more equitable access to food leads to the biggest reductions. The analysis confirms that it is not lack of available food that is the fundamental problem, but rather effective access to that food. Trade plays an increasing role in ensuring national food availability for many countries. Classification-JEL: I31; O13; Q10; Q18 Keywords: development goals, food security, hunger, Prevalence of undernourishment, scenarios, sustainable development goals millennium Creation-Date: 2016-09-17 Number: 95 Handle: RePEc:oec:agraaa:95-EN Template-type: ReDIF-Paper 1.0 Author-Name: Heather Cooley Author-Workplace-Name: Pacific Institute Author-Name: Michael Cohen Author-Workplace-Name: Pacific Institute Author-Name: Rapichan Phurisamban Author-Workplace-Name: Pacific Institute Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Title: Water risk hotspots for agriculture: The case of the southwest United States Abstract: This report analyses trends in agriculture for the US Southwest region, one of the most water stressed and productive agricultural regions in the world expected to face further water shortages in the future due to climate change and continued growth. It examines projected water risks by mid-century without additional policy action, and discusses the expected implications for the agriculture sector, based on a review of existing data and available publications. The region will likely continue to be a major agricultural producer by mid-century but will be affected by more variable and uncertain water supplies and increased water demand. Irrigated area is likely to decline, with lower value, water-intensive field and forage crops experiencing the greatest losses. Livestock and dairy are also especially vulnerable to water shortages and climate change. Trade and employment may be affected, although projections remain uncertain. Policy options can help mitigate these projected water risks, such as agricultural and urban water efficiency improvements, refined groundwater management, investment in water banks and recycled wastewater systems, and well-defined water transfers. Classification-JEL: Q15; Q25; Q28; Q54 Keywords: Agriculture and water risks, California, climate change, Colorado River Basin, drought, US Southwest, water competition Creation-Date: 2016-09-22 Number: 96 Handle: RePEc:oec:agraaa:96-EN Template-type: ReDIF-Paper 1.0 Author-Name: Raphaël Beaujeu Author-Workplace-Name: OECD Title: Alternative Policies to Buffer Stocks for Food Security Abstract: Public stockholding remains a major concern in multilateral negotiations on agricultural trade liberalisation. This paper focuses on identifying alternative policies to buffer stockholding. It first positions buffer stocks within the range of policies aimed at price stabilisation and food security, with a view to identifying alternatives to meet the same policy objectives. The paper then examines the most direct alternative to public food stocks for price stabilisation, namely private stockholding. It explores experience with private stockholding to assess its effectiveness in achieving price stabilisation objectives and the necessary conditions for implementation. As the price stabilisation role of buffer stocks is also argued to be necessary for food security, the paper also explores alternative approaches that governments may take to meeting this food security objective through social safety nets. Some illustrative examples are explored to highlight key elements for successful implementation. The paper concludes with some observations regarding policy alternatives to buffer stocks. Classification-JEL: Q13; Q17; Q18 Keywords: agricultural policy, food, price volatility, risk management Creation-Date: 2016-11-25 Number: 97 Handle: RePEc:oec:agraaa:97-EN Template-type: ReDIF-Paper 1.0 Author-Name: Pierre-Benoit Joly Author-Name: Laurence Colinet Author-Name: Ariane Gaunand Author-Name: Stéphane Lemarié Author-Name: Mireille Matt Title: Agricultural research impact assessment: Issues, methods and challenges Abstract: The Research Impact Assessment (RIA) is expected to increase the efficiency with which public funds are used, and to improve more broadly the functioning of the research and innovation system and its contribution to address a wide range of socio-economic and environmental issues. Both standard economic approaches, which aim to estimate the economic benefits of research investments, and case-study approaches, which aim to analyse the processes of impact generation, have been applied to agricultural research in practice. Standard economic approaches generally focus on public research as information on private efforts in agricultural research is limited, and on economic impacts such as productivity growth. Case studies provide richer information, through a narrative, and highlight the complex relationships among the various variables, events and actors, but it is difficult to standardise results and scale them up. The challenge for RIA is to take into account broader impacts that go beyond science and economic impacts, and to improve knowledge on impact-generating mechanisms. This has become more difficult as agricultural research and innovation systems are increasingly open and complex, and changing quickly. Observation of practices applied to agricultural research in five selected organisations confirms the difference found in RIA between academic research and in practice. In both, the assessment systems pursue the same objectives: 1) Learning: enhance the know-how to produce an environment conducive to socio-economic impact; 2) Capacity building: spread the culture of socio-economic impact to its researchers; and 3) Reporting to stakeholders: from accountability purposes to advocacy targeted to various audiences. The accountability objective, including estimating returns on the financial investment, poses complex challenges and is in tension with the learning and capacity building objectives. The future of RIA will depend on the capacity to improve estimation methods and gather quality information (which also takes into account non-economic impacts) and the sharing of good practices. Classification-JEL: O31; O38; Q16 Keywords: agricultural research, research impact evaluation Creation-Date: 2016-12-23 Number: 98 Handle: RePEc:oec:agraaa:98-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Raphaël Beaujeu Title: A method for estimating global trade in value added within agriculture and food value chains Abstract: Global Value Chains (GVCs) have transformed production across a broad range of goods and services worldwide. Although the development of GVCs has occurred in agro-food sectors alongside other sectors, less is known about the trade that occurs within agro-food GVCs due to limited information on flows of trade in value added. This study develops an approach to calculate disaggregated indicators of GVC participation in agro-food sectors in both developed and developing countries. Specifically, the approach exploits the Global Trade Analysis Project (GTAP) database to construct an inter-country input-output (ICIO) table for the year 2011. The resulting ICIO is used to compute indicators of GVC participation based on the concept of vertical specialisation – forward and backward participation – across 20 agro-food sectors in 70 countries and/or regions. Estimates of domestic value added in exports and final demand or agro-food products, including the contribution of all industries, are also presented. Classification-JEL: F14; F60; Q17 Keywords: agriculture, global value chains, GTAP, multi-regional input output Creation-Date: 2017-02-27 Number: 99 Handle: RePEc:oec:agraaa:99-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Raphaël Beaujeu Title: How policies shape global food and agriculture value chains Abstract: Global value chains (GVCs) have changed the nature of production and specialisation around the world, including in agriculture and food sectors. This study takes an in-depth look at the landscape of agro-food GVCs and explores the factors that influence GVC participation by making use of a newly developed database on trade in value added for 20 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The study also explores the benefits of GVC participation, viewed through the lens of domestic value added creation and employment, with a focus on the policy factors that influence these benefits. The study points to considerable variation in GVC participation across agro-food sectors, driven not only by product characteristics but also by policy factors related to trade and investment, the agricultural enabling environment and policies influencing service markets. The study shows that for agro-food sectors, trade barriers act as a tax on exports, reducing the domestic value added created from participation in agro-food GVCs. Classification-JEL: F14; F60; Q17 Keywords: agriculture, global value chain, GTAP, multi-regional output Creation-Date: 2017-02-27 Number: 100 Handle: RePEc:oec:agraaa:100-EN Template-type: ReDIF-Paper 1.0 Author-Name: Anita Wreford Author-Workplace-Name: Scion (New Zealand Forest Research Institute) Author-Name: Ada Ignaciuk Author-Workplace-Name: Food and Agriculture Organization of the United Nations Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Title: Overcoming barriers to the adoption of climate-friendly practices in agriculture Abstract: Considerable efforts have been devoted to understanding and developing technologies and practices that can help the agricultural sector reduce its greenhouse gas emissions and adapt to the impacts of climate change. The uptake of these "climate-friendly" technologies and practices, however, remains low. This report, based on a comprehensive review of the literature, analyses barriers that may prevent farmers from adopting climate-friendly practices. A multitude of potential barriers exist, some associated with farm-level constraints, others operating at the sector level, or created by existing policies. A series of recommendations are made to properly identify these types of barriers and to select the right instruments that would work to implement effective policy solutions. Classification-JEL: Q16; Q18; Q54 Keywords: adaptation policies, Agriculture, climate change, climate mitigation, technology adoption Creation-Date: 2017-04-27 Number: 101 Handle: RePEc:oec:agraaa:101-EN Template-type: ReDIF-Paper 1.0 Author-Name: Johannes Sauer Author-Workplace-Name: Technical University of Munich Title: Estimating the link between farm productivity and innovation in the Netherlands Abstract: This report investigates the link between farm innovation and economic performance. The study uses a unique survey dataset maintained by Wageningen Economic Research in the Netherlands. A structural multi-stage model of firm-level innovation is applied. The model contains four steps: first, the decision of the farmer to innovate at all; second the innovation intensity, measured by expenditures on innovation activities; third the output of the innovation process, which is measured by realized product, process, organisational or marketing-related innovation; fourth, productivity changes as a result of innovation. The analysis is performed for two types of farms – dairy and crop farms – and covers the period from 2004 to 2014. A number of factors are found to be decisive for the magnitude and success of farm innovations in the Netherlands. Among them regulations and standards, the level of co-operation with knowledge producing institutions, own product and process-related development activities, farm size, the age of the farm operator as well as confidence in business and sector developments. Based on these and other results, the report derives implications for policies aimed at promoting farm innovation and productivity and sustainability in the agricultural sector. Classification-JEL: O31; Q12; Q16 Keywords: agriculture, Dutch farms, Innovation, productivity Creation-Date: 2017-06-07 Number: 102 Handle: RePEc:oec:agraaa:102-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Support to fisheries: Levels and impacts Abstract: The OECD Fisheries Support Estimate (FSE) database collects and classifies information on budgetary transfers to the fisheries sector in 31 countries that together account for 35% of global fisheries landings. In 2015, the most recent year, it inventories policies and programmes totalling USD 7 billion. Most of this support is found to be directed towards general services to the fishing sector, mainly in the form of fisheries management costs, but also for, inter alia, infrastructure, research and stock enhancement. Approximately USD 500 million per year is used for programmes that deliver funds directly in the hands of fishers. The share of this form of support has been decreasing over time. Payments based on the use of variable inputs are found to be the most likely to provoke increased fishing effort, while payments based on fixed capital formation are most likely to encourage increased capacity levels. Payments based on fishers income are less likely to increase effort or capacity and may be more effective at improving the welfare of fishers. Payments to general services for the sector are least likely to increase effort or fishing capacity. Classification-JEL: H23; H53; H54 Keywords: Fisheries support, overcapacity, overfishing, subsidies Creation-Date: 2017-05-31 Number: 103 Handle: RePEc:oec:agraaa:103-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Evaluation of farm programmes in the 2014 US farm bill: A review of the literature Abstract: Main changes to US farm programmes under the 2014 Farm Bill aim to strengthen instruments for risk management, both in commodity and in crop insurance programmes. In addition, the 2014 Farm Bill consolidated voluntary conservation programmes supporting agricultural land preservation and the adoption of environmentally friendly production practices. In the literature reviewed, analysts generally acknowledge the reinforced capacity of farm programmes to reduce farm revenue losses and the diversity of options offered to farmers to manage risk. They also discuss farmers' choices of participation in programmes and coverage level in terms of optimisation of their benefits. They also outline the scope for higher budget costs if prices keep falling, but note that some provisions limit the increase. Regarding the impact of programmes on land and markets, the consensus is that by design, the two new crop commodity programmes do not influence current planting decisions, but they could generate small wealth and risk effects. Similarly the new dairy programme could affect the decisions of risk adverse farmers. Support to crop insurance on the other hand is based on current parameters, and unlimited, thus it is expected to encourage higher input use to maximise profit, in addition to the wealth and risk effects. Empirical analyses find very small effects of crop insurance subsidies on total land use, but some suggest a non-negligible impact on crop rotation, and variable input use. Overall, the literature finds that conservation payments seem to have had a positive impact on the environment. In particular, they have encouraged farmers to adopt more environmentally-friendly practices and address a broader set of environmental objectives. Some experts note, however, that some programmes may not necessarily bring additional benefits. Experts consider that cross-compliance mechanisms have partly contributed to reduce soil erosion by encouraging farmers to use less erosive cropping practices (e.g. conservation tillage, conservation crop rotations) and to retire particularly erodible land. Classification-JEL: Q18 Keywords: Agricultural policy, conservation programmes, crop insurance, risk management Creation-Date: 2017-06-21 Number: 104 Handle: RePEc:oec:agraaa:104-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Workplace-Name: OECD Title: Impact of agricultural export restrictions on prices in importing countries Abstract: During the commodity price spikes in 2007-08 and 2010-11, several countries implemented temporary export restrictions on staple foods in an attempt to protect domestic consumers from rising and volatile prices. The impacts of these policies, however, are not limited to the countries that are instituting them; they can also influence consumer prices in their trading partners. This study analyses whether the impact of export restrictions was different in countries that were traditionally more dependent on imports from the restricting country than in countries that imported a smaller share. Four export bans are considered: the maize ban in Argentina, the rice bans in India and Viet Nam, and the wheat ban in the Russian Federation. Using an error correction model in a panel framework, the study identifies the long-run impacts of export bans by showing whether the introduction of these bans caused a structural break in the long-term relationship between prices in international markets and consumer prices in domestic markets. The analysis demonstrates that the effects of an export ban were more pronounced in the group of countries that traditionally imported a higher share from the restricting countries than in countries with a lower import dependency. The results show that, even though export bans are temporary in nature, they can have long lasting effects. Classification-JEL: C23; F13; Q11; Q17; Q18 Keywords: error correction model, export bans, Food prices, price transmission Creation-Date: 2017-08-07 Number: 105 Handle: RePEc:oec:agraaa:105-EN Template-type: ReDIF-Paper 1.0 Author-Name: Raushan Bokusheva Author-Workplace-Name: OECD Author-Name: Lukáš Čechura Author-Workplace-Name: Czech University of Life Sciences Prague Title: Evaluating dynamics, sources and drivers of productivity growth at the farm level Abstract: This report measures and evaluates total factor productivity (TFP) of crop farms in the European Union (EU) in the period after the implementation of a series of important reforms of the EU Common Agricultural Policy (CAP). The analysis covers six EU Member states: the Czech Republic, France, Germany, Hungary, Poland and the United Kingdom. The data used in the analysis are based on the Farm Accountancy Data Network (FADN) data provided by the European Commission. To investigate sources of productivity growth, TFP is decomposed into three components – technical change, scale effect and technical efficiency. Technical change was found to be major source of productivity growth for most country samples for the two analysed periods. Technologies currently applied on crop farms were estimated to exhibit substantial economies of scale and therefore favour large-scale operations. However, economies of scale are not fully exploited which suggests the presence of some institutional constraints on farm growth. Large farms appear to be in a better position to exploit economies of scale; for West European countries covered in the report they were also found to exhibit larger persistent technical inefficiencies. Farm support payments were found to negatively influence crop farm productivity and efficiency of input use. More decoupled payments appear to be less distorting than other forms of support. A meta-level analysis of allocative efficiency shows that farms tend to be overcapitalised but to show relatively low allocative inefficiencies in their variable input use decisions. Substantial allocative inefficiencies appear also to exist in land and labour use. No significant economies of scope were found for the analysed crop production systems and levels of output aggregation. Farm flexibility was revealed to be determined mainly by the scale and convexity effects enabling cost efficient adjustments in the size of farm operations. Classification-JEL: D24; Q12; Q18 Keywords: agriculture, economies of scope, European Union, farm flexibility, Total Factor Productivity Creation-Date: 2017-09-05 Number: 106 Handle: RePEc:oec:agraaa:106-EN Template-type: ReDIF-Paper 1.0 Author-Name: James Innes Author-Workplace-Name: OECD Author-Name: Roger Martini Author-Workplace-Name: OECD Author-Name: Antonia Leroy Author-Workplace-Name: OECD Title: Red tape and administrative burden in aquaculture licensing Abstract: Concern that rates of aquaculture growth in OECD countries are below potential has resulted in environmentally sustainable production increase becoming a priority for policy makers. Growth in aquaculture production can be influenced by many factors. This report looks at the attributes of licensing and regulatory systems in OECD countries, the area over which policy makers have greatest direct control, and finds some suggestion they may be negatively related to aquaculture growth rates. Opportunities exist for reducing the administrative burden faced by enterprises, without sacrificing regulatory quality in the process. There is also a strong indication that quality governance, aided by having systems of evaluation and review in place, helps reduce overall administrative burden. Comparing the attributes of licensing systems with environmental performance was not possible due to the lack of suitable indicators. This highlights the need to measure environmental performance if regulatory effectiveness is to be evaluated further. Classification-JEL: O47; Q01; Q22; Q28 Keywords: aquaculture, bureaucracy, environmental policy, indicators, licences, licensing, regulatory policy, seafood farming Creation-Date: 2017-09-22 Number: 107 Handle: RePEc:oec:agraaa:107-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gen Furuhashi Author-Workplace-Name: OECD Author-Name: Hubertus Gay Author-Workplace-Name: OECD Title: Market Implications of Integration of Asian Rice Markets Abstract: This paper explores how the integration of rice markets in ASEAN countries influences the import, export, production, consumption, and prices of rice in those countries, as well as in the rest of the world. The analysis describes current policies applied to ASEAN rice markets, then evaluates the ten-year impacts of two reform scenarios using the OECD-FAO Aglink-Cosimo model. The first scenario involves the elimination of tariffs within the region, while protection vis-à-vis countries outside the region remains unchanged. The second scenario involves closer price integration across the region, again with protection versus countries outside the region unchanged. The analysis finds that opening up the regional trade market will lead to greater overall production, consumption and trade across the region. The overall welfare gains are over fifteen times higher with full price integration, as opposed to just tariff reform. Significant price changes create winners and losers within all countries, underscoring the need for complementary policies to accompany a rice market integration agenda. Classification-JEL: Q10; Q11; Q17; Q18 Keywords: partial equilibrium model, self-sufficiency, Tariffs Creation-Date: 2017-12-12 Number: 108 Handle: RePEc:oec:agraaa:108-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emily Gray Author-Name: Lucie Adenäuer Author-Name: Dorothee Flaig Author-Name: Frank van Tongeren Title: Evaluation of the relevance of border protection for agriculture in Switzerland Abstract: Switzerland’s overarching agricultural policy objectives reflect societal concerns about various production aspects of agriculture, such as environmental sustainability and animal welfare, and the expectation that agriculture will provide public goods demanded by society. Among the various policy instruments used by Switzerland to achieve these objectives, border protection represents a significant component of support. This study assesses the relevance of border protection for agriculture in Switzerland. It finds that border protection is not relevant for achieving the overarching objectives of Swiss agricultural policy, with one exception. By stimulating domestic production, high levels of border protection ensure that Switzerland meets its target rate of gross food production. But border protection is unlikely to deliver the other outcomes and public goods desired by Swiss society. This is because support provided through border protection is not conditional on delivery of the outcomes and public goods demanded by Swiss society, and is untargeted towards the activities, inputs and regions most strongly related to those outcomes and public goods. Moreover, border protection imposes significant costs on the Swiss economy. The study concludes by proposing alternative policies in place of border protection. Classification-JEL: Q15; Q17; Q18 Keywords: Border protection, METRO, multifunctionality, public goods, Switzerland Creation-Date: 2017-12-19 Number: 109 Handle: RePEc:oec:agraaa:109-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Author-Name: Ada Ignaciuk Author-Workplace-Name: OECD Author-Name: Franck Jésus Author-Workplace-Name: OECD Title: Synergies and trade-offs between adaptation, mitigation and agricultural productivity: A synthesis report Abstract: This report develops quantitative and qualitative frameworks to test the possibility of systematically assessing a range of policies and their intended and unintended effects. The analysis spans the three policy objectives of enhanced productivity, climate change mitigation, and climate change adaptation. The preliminary findings and lessons learned are drawn from two applications of a qualitative framework (France and the Netherlands), where information was gathered through a wide-ranging questionnaire, and from two applications of a quantitative modelling framework which was tested using data from Finland and from selected sites in one region of the United States. Classification-JEL: Q18; Q54; Q58 Keywords: adaptation, agricultural policy, greenhouse gas emissions, mitigation, Productivity Creation-Date: 2018-05-28 Number: 110 Handle: RePEc:oec:agraaa:110-EN Template-type: ReDIF-Paper 1.0 Author-Name: J. Lankoski Author-Workplace-Name: OECD Author-Name: H. Lehtonen Author-Workplace-Name: Natural Resources Institute Author-Name: M. Ollikainen Author-Workplace-Name: University of Helsinki Author-Name: S. Myyrä Author-Workplace-Name: Natural Resources Institute Title: Modelling Policy Coherence Between Adaptation, Mitigation and Agricultural Productivity Abstract: This paper develops theoretical and quantitative analysis to identify the potential synergies and trade-offs inherent in various policy instruments that address agricultural productivity, climate change mitigation and adaptation, and water quality objectives. The theoretical model used describes crop production choices made by farmers given different sets of government policies and whereby crop yields can be impacted by climate change. Quantitative results on the basis of Finnish data show that decoupled area payment appears to provide more trade-offs than other policy instruments as it increases greenhouse gas (GHG) emissions and nutrient runoff, and decrease total factor productivity and social welfare relative to a situation with no policy. Nitrogen fertiliser tax, a soil GHG emission tax, and a subsidy for green set-aside perform well with respect to all other objectives with the exception of adaptation to climate change. These policy instruments significantly reduce GHG emissions and nutrient runoff, and thus their social welfare performance is high. Classification-JEL: Q18; Q54; Q58 Keywords: adaptation, crop insurance, decoupled payment, emission tax, fertilizer tax, mitigation, nutrient runoff, Risk Creation-Date: 2018-06-12 Number: 111 Handle: RePEc:oec:agraaa:111-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Blandford Author-Workplace-Name: Pennsylvania State University Author-Name: Katharine Hassapoyannes Title: The role of agriculture in global GHG mitigation Abstract: Agriculture is a major emitter of greenhouse gases. Its potential to contribute to limiting global warming to less than 2oC by the end of the century is substantial by reducing direct emissions in crop and livestock production, by reducing indirect emissions associated with changes in land use, and by increasing carbon sequestration. Technological advancements and changes in consumer preferences that result in land-sparing are particularly promising options given food security concerns. Gains in total factor productivity will also enhance the sector’s competitiveness. Changes in domestic and trade policies are essential to maximize mitigation potential. In the absence of global application of carbon pricing, international co-ordination is needed to ensure that national mitigation efforts result in carbon reallocation, i.e. shifts in the location of production to low emissions sources. Measures of emissions relative to the economic contribution of agricultural activities can be insightful for identifying national mitigation priorities. Classification-JEL: Q01; Q18; Q54 Keywords: Climate change, global agriculture, mitigation Creation-Date: 2018-08-06 Number: 112 Handle: RePEc:oec:agraaa:112-EN Template-type: ReDIF-Paper 1.0 Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Author-Name: Colette Ashley Author-Workplace-Name: University of Chicago Author-Name: Jean-Joseph Cadilhon Author-Workplace-Name: OECD Title: Reforming water policies in agriculture: Lessons from past reforms Abstract: Agriculture’s water quality and quantity challenges continue to grow in many regions of the world. Policy solutions have been identified, but not always applied where needed nor implemented effectively. This report analyses eight past water and agriculture policy changes in OECD countries with the aim to identify steps towards adopting and implementing such solutions effectively. Selected reforms are assessed systematically via an institutional change analysis and a cross-cutting comparison of political economy factors. A characterisation of reforms is proposed according to the scope of the reform process, the scope of the reform’s action, and the involvement of governments in the design of reforms and their implementation. The comparison of agriculture and water policy changes shows that introducing reforms can be facilitated by exogenous factors, including droughts and floods, and reform design features. Meanwhile, the outcome of reforms can be affected by their geographical scale and scope, the dynamic pattern of reform pathways, and compensation for farmers. There are, however, trade-offs between the effects of these factors on the reform’s ambition, effectiveness, efficiency, and flexibility. Classification-JEL: P48; Q18; Q25; Q28; Q58 Keywords: Agriculture policy, irrigation, nonpoint source pollution, political economy, reform process, water markets, water policy, water prices Creation-Date: 2018-09-05 Number: 113 Handle: RePEc:oec:agraaa:113-EN Template-type: ReDIF-Paper 1.0 Author-Name: Julien Hardelin Author-Workplace-Name: OECD Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Title: Land use and ecosystem services Abstract: This report assesses the crucial drivers of ecosystem services and proposes actions to develop a more effective policy mix. Several elements form the basis of this report. First, a literature review provides an overview of the state and trends of ecosystem services linked to agriculture, including issues related to land use. Secondly, results are presented from a quantitative model developed to illustrate the potential benefits of improving policy design as well as to investigate synergies and trade-offs among ecosystem services. This report also includes a review of experiences in an inventory of ecosystems in selected countries and policy initiatives that address ecosystem services linked to agriculture. Classification-JEL: Q15; Q18; Q57; Q58 Keywords: Biodiversity, conservation auction, environmental tax, payment for ecosystem services, spatial targeting, water quality Creation-Date: 2018-09-07 Number: 114 Handle: RePEc:oec:agraaa:114-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Author-Workplace-Name: OECD Author-Name: James Innes Author-Workplace-Name: OECD Title: Relative Effects of Fisheries Support Policies Abstract: The effects of six common forms of fisheries support are estimated using a bioeconomic model of the global fishery. The results show that all have the potential to provoke overfishing, to lead to fish stocks being overfished, to encourage illegal, unreported or unregulated (IUU) fishing and to increase fleet capacity, but that their effects can vary significantly both in scale and how they are distributed at the fleet level. The fisheries management system can mitigate, though not entirely eliminate, these impacts. Supports based on reducing the cost of inputs purchased by fishers provoke the greatest increase in fishing effort, with associated risks of overfishing. This includes fuel subsidies, which are also shown to deliver less than 10% of their value in actual benefits to fishers in some cases, making them the least effective means of transferring income to fishers of those evaluated. Payments based on improving fishers’ business operations provided the greatest benefit to fishers and had relatively less tendency to increase fishing effort. If only USD 5 billion in fuel support was converted into support of this type, fishers would see increased income of more than USD 2 billion, while at the same time reducing effort and improving fish stocks. Such a change would also provide relatively more benefit to smaller fishers. Classification-JEL: H23; H53; Q22; Q28; Q57 Keywords: fisher welfare, fisheries policy, Fisheries support, overcapacity, overfishing, subsidies Creation-Date: 2018-12-14 Number: 115 Handle: RePEc:oec:agraaa:115-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Title: Agro-food trade, GVCs and agricultural development in ASEAN Abstract: The countries that compromise the Association of Southeast Asian Nations (ASEAN) have expanded their involvement in global agro-food trade through strong regional production growth and increasing consumer demands from population growth and higher incomes. Regional and international agro-food markets have thus become an important source of income and food for the regions producers and consumers. However, growth in trade has lessened in recent years with projections suggesting a further slowing over the medium term. This study explores the role that agro-food trade and participation in agro-food global value chains (GVC) has had on regional agro-food sectors and current barriers that are holding the region back from unlocking the full benefits of further integration into regional and global agro-food markets. It finds that although GVC engagement has increased regional agro-food growth between 2004 and 2014, gaps remain in the level of regional integration. Results from the analysis suggest that reducing the remaining tariff and non tariff barriers, and creating an enabling environment to allow agricultural producers to better access service inputs, will help spur sector growth and agricultural incomes. Classification-JEL: F14; F15; F60; Q17; Q18 Keywords: agricultural trade, Agriculture, ASEAN, regional integration Creation-Date: 2018-12-17 Number: 116 Handle: RePEc:oec:agraaa:116-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Title: ASEAN rice market integration: findings from a feasibility study Abstract: This study explores feasibility of regional rice market integration by examining the impacts on production and trade, with a specific focus on the adjustment impacts for rice producers. It seeks to set out policy measures required to better integrate the rice markets of Association of Southeast Nations (ASEAN) countries and the role that trade policy can play to help the agricultural sector adjust to pressures created from freer trade in rice within this region. While regional rice market integration can deliver more rice at lower prices to the regions consumers, this study finds significant adjustments to the rice sectors will be required in Indonesia, Malaysia, and the Philippines. However, opportunities through lowering tariff barriers with existing key trading partners of free trade agreements has the scope to create more employment and value adding opportunities in all agricultural sectors to offset the losses from regional rice market integration. The study suggests a number of measures are necessary to build trust in regional markets to allow rice market integration to take place. This includes an agreement to ban export restrictions. Furthermore, while broader trade reforms will help create new opportunities for agricultural sectors across the ASEAN region, flanking policies and investments in the enabling environment are still required for the sectors to take full advantage of these opportunities. Classification-JEL: F14; F15; F60; Q17; Q18 Keywords: agricultural trade, Agriculture, regional integration Creation-Date: 2018-12-17 Number: 117 Handle: RePEc:oec:agraaa:117-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The changing landscape of agricultural markets and trade: prospects for future reforms Abstract: This report synthesises OECD work analysing agricultural policies, markets and trade. It highlights recent developments in agricultural markets and policies and considers how these have changed the source and nature of the gains from multilateral reform, and considers opportunities for further reforms.In large part, gains from further reform come from the opportunities to increase income and jobs through increasing agro-food sector participation in global and domestic value chains. Countries can enhance the overall competitiveness of their agro-food sectors though more open trade policies and reducing the impacts of measures that raise trade costs. This includes reducing distorting domestic support and market access barriers, including to agro-food imports; ensuring that non-tariff measures are appropriate, transparent, and science-based; and reducing barriers to services trade. Classification-JEL: F13; Q17; Q18 Keywords: agricultural policy, Agricultural trade, global value chains, non-tariff measures, policy reforms, trade in services Creation-Date: 2019-01-07 Number: 118 Handle: RePEc:oec:agraaa:118-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Marie-Agnes Jouanjean Author-Workplace-Name: OECD Title: Dynamic Changes and Effects of Agro-Food GVCS Abstract: Global value chains (GVCs) in agriculture and food sectors are becoming an important part of the agro-food trading landscape, influencing both the nature of the gains from trade and the impacts of trade policies. This study explores the changes in trade in value added that are occurring within agro-food GVCs and the implications that participation in agro-food GVCs has had on the agro-food sectors. It makes use of a database on trade in value added for 22 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The study finds that between 2004 and 2014, agro-food sectors have been increasing their participation in GVCs and that the links created within these production networks have become more “global” in nature. At the same time, agro-food GVCs have become increasingly centred around hubs in the People’s Republic of China and Germany where large amounts of value added are funnelled before reaching the end consumer. The study also finds that participation in agro-food GVCs is beneficial for sector development and growth – both in aggregate terms and in terms of domestic value added from exports. Of key importance has been the use of foreign value added and access to a wide diversity of imported inputs. However, policies that restrict trade and limit market openness reduce participation and sector growth and development – including policies that create barriers to trade in agro-food products themselves. In addition, the study finds that the use of services value added in exports is an important factor that contributes to sector growth, which highlights the importance of the broader policy environment to enhance the benefits from agro-food GVCs. Classification-JEL: F14; F60; Q17 Keywords: agricultural trade, Agriculture, global value chains, GTAP, multi-regional output Creation-Date: 2019-01-28 Number: 119 Handle: RePEc:oec:agraaa:119-EN Template-type: ReDIF-Paper 1.0 Author-Name: Barbara Hutniczak Author-Workplace-Name: OECD Author-Name: Claire Delpeuch Author-Workplace-Name: OECD Author-Name: Antonia Leroy Author-Workplace-Name: OECD Title: Closing Gaps in National Regulations Against IUU Fishing Abstract: This paper identifies the progress achieved by individual countries in implementing internationally recognised best policies and practices against illegal, unreported and unregulated (IUU) fishing since 2005. It aims to inspire and guide governments and all stakeholders in the fisheries sector in how to focus their effort and investment to step up their fight against IUU fishing. The paper builds on a suite of policy indicators that investigate the extent to which countries meet their responsibilities in the most important dimensions of government intervention in relation to IUU fishing. The indicators show considerable improvement in fighting IUU fishing over the last decade, in line with international treaties and voluntary agreements. They also point to the gaps that need to be closed to individually and collectively work towards eliminating IUU fishing. Classification-JEL: Q22; Q27; Q28 Keywords: Fisheries management, fisheries policy, IUU fishing Creation-Date: 2019-02-14 Number: 120 Handle: RePEc:oec:agraaa:120-EN Template-type: ReDIF-Paper 1.0 Author-Name: Barbara Hutniczak Author-Workplace-Name: OECD Author-Name: Claire Delpeuch Author-Workplace-Name: OECD Author-Name: Antonia Leroy Author-Workplace-Name: OECD Title: Intensifying the Fight Against IUU Fishing at the Regional Level Abstract: Regional fisheries management organisations (RFMOs) are the primary mechanism for co-operation between fishing countries and coastal states to ensure sustainable fishing globally. This paper aims to inspire and guide RFMO secretariats and member countries in how to focus their effort and investment to step up the contribution of RFMOs to the fight against illegal, unreported and unregulated (IUU) fishing. It does so by measuring the extent to which RFMOs apply best practices against IUU fishing and pointing to the remaining gaps. Information gathered from RFMOs’ resolutions and recommendations introducing conservation and management measures (CMMs), other publicly available sources and direct communication with RFMOs’ secretariats was analysed and summarised into five indicators reflecting the most important management tools targeting IUU fishing at the disposal of RFMOs. Indicators show overall progress among RFMOs, but discrepancies remain, suggesting scope for improvement by learning from best performers. Classification-JEL: Q22; Q27; Q28 Keywords: Fisheries management, IUU fishing, regional fisheries management organisation, RFMO Creation-Date: 2019-02-14 Number: 121 Handle: RePEc:oec:agraaa:121-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marie-Agnes Jouanjean Title: Digital Opportunities for Trade in the Agriculture and Food Sectors Abstract: How are new opportunities to create and share information shaping the digital transformation of the agriculture and food system, and thus potentially fostering its reorganisation? This report focuses on cross-border trade aspects along the global agriculture and food value chain, and looks at how changes brought about by digital technologies can influence who participates in the value chain, where value added is created, and how value is distributed between actors in the chain. However, it is not only changes in the agriculture and food sector from digital technologies that matters, but also the digital transformation of other actors in the global value chain (GVC) such as support services, logistics and governments. Digital technologies present a potential to reduce trade and transaction costs, including those related to identifying and negotiating a deal, proving compliance with standards and to delivering products across borders quickly and efficiently. Classification-JEL: Q16; Q17; Q13; F13 Keywords: agricultural trade, agriculture and food standards, Digital technology, market access, SPS, traceability, trade facilitation Creation-Date: 2019-02-15 Number: 122 Handle: RePEc:oec:agraaa:122-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Marie-Agnes Jouanjean Author-Workplace-Name: OECD Title: Value Adding Pathways in Agriculture and Food Trade: The Role of GVCs and Services Abstract: Global value chains (GVCs) in agriculture and food sectors have the potential to influence trading relationships and the gains from trade for different sectors along the value chain. This report explores the way in which value from trade and GVC participation is created for the agriculture sector. It examines differences in returns to the sector from participation in GVCs and trade either directly in contrast to participation that relies on downstream domestic processing. The study makes use of a database on trade in value added for 22 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The evidence presented in this paper suggests that aggregate value to the agriculture and to the economy overall from direct participation in trade and GVCs generates at least as much value as participation that relies on domestic downstream processing. Similar overall gains from primary exports are associated with greater volumes and the value created from ‘value addition’ to these exports – the embodied service and other inputs. Indeed, countries that specialise in primary exports have higher shares of service value added in these exports, with this also being a determinant of value growth for middle-income countries. Classification-JEL: Q17; F60; F14 Keywords: agricultural trade, GTAP, Multi-regional output Creation-Date: 2019-02-19 Number: 123 Handle: RePEc:oec:agraaa:123-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Marie-Agnes Jouanjean Author-Workplace-Name: OECD Title: Employment in Agriculture and Food Trade: Assessing the Role of GVCs Abstract: Agricultural sectors are increasingly integrated into international markets as global value chains (GVCs) expand. This integration is helping to drive value added growth in the sector, including the returns that flow to labour. This report explores the impact that trade and agro-food GVC participation has on labour returns and thereby employment not only within the agricultural sectors, but across other sectors of the economy. At the global level, trade and agro-food GVCs generated an average of between 20-26% of total agricultural workforce returns between 2004 and 2014, and labour returns were generated from both direct participation in trade and from indirect participation through other downstream sectors. This report finds that the impact on economy-wide labour returns is on average greater for countries specialising in direct exports of primary products as compared to those specialising in indirect agricultural exports. Evidence also shows that agricultural subsidies have a negative impact both on labour returns from primary sector exports and the returns generated indirectly from processing-sector exports. Classification-JEL: Q17; F60; F14 Keywords: agricultural trade, Agriculture, Global value chains, GTAP, multi-regional output Creation-Date: 2019-02-20 Number: 124 Handle: RePEc:oec:agraaa:124-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jared Greenville Author-Workplace-Name: OECD Author-Name: Kentaro Kawasaki Author-Workplace-Name: OECD Author-Name: Dorothee Flaig Author-Workplace-Name: OECD Author-Name: Caitlyn Carrico Author-Workplace-Name: OECD Title: Influencing GVCs through Agro-Food Policy and Reform Abstract: Global value chains (GVCs) in agriculture and food sectors contribute to sector growth and development. However, agricultural trade is subject to significant distortions that limit trade which in turn impacts on its competitiveness world-wide. Using the OECD Metro model, this study analyses the impact of trade and domestic support policies on participation in agro-food GVCs and the benefits that flow from them. The results show that current market access barriers and distorting forms of domestic support have a negative effect not only on welfare, but also on the possible benefits from participation in agro-food GVCs. If barriers, i.e. tariffs and quotas, were removed this would offer the potential to increase welfare, increase exports of agro-food domestic value added from all countries, and promote trade by furthering GVC links through value added. This study also shows that regional trade agreements have the potential to deepen GVC linkages amongst members. Classification-JEL: Q17; F60; F14 Keywords: agricultural trade, agriculture, CGE modelling, Global value chains, regional trade agreements Creation-Date: 2019-02-22 Number: 125 Handle: RePEc:oec:agraaa:125-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clara Thompson-Lipponen Author-Workplace-Name: OECD Author-Name: Jared Greenville Author-Workplace-Name: OECD Title: The Evolution of the Treatment of Agriculture in Preferential Trade Agreements Abstract: Preferential trading agreements are becoming a more common feature of the global agro food trading environment, a trend that has increased since the early 2000s. While they increasingly cover the majority of trade worldwide, there remains a question as to the extent to which their treatment of agriculture has changed over time, and whether the liberalising elements contained in these agreements are increasingly addressing distortions in world agro-food markets. This paper presents findings on the evolution of the treatment of agriculture within preferential trade agreements. Changes in various aspects of liberalisation achieved through these agreements have been explored, such as provisions related to market access, export competition and domestic support. The report finds that agriculture appears to be increasingly treated in a similar manner to other goods trade, with expansion in the scope of agreements extending to agriculture. Agreements are delivering reduced tariffs among members across the majority of agricultural commodities – however, heterogeneity of rules of origin between agreements is likely to be undermining these benefits. Reflecting multilateral rules, provisions related to Sanitary and Phytosanitary measures and Technical Barriers to Trade have become a standard feature of agreements. Overall, preferential trade agreements are strongly influenced by the multilateral framework. Classification-JEL: Q17; F60; F14 Keywords: Agricultural trade, regional trade agreements Creation-Date: 2019-02-27 Number: 126 Handle: RePEc:oec:agraaa:126-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Delpeuch Author-Workplace-Name: OECD Author-Name: Barbara Hutniczak Author-Workplace-Name: OECD Title: Encouraging policy change for sustainable and resilient fisheries Abstract: How can policy makers successfully implement the policy changes needed to achieve greater economic, social, and environmental sustainability and resilience? This report combines lessons from the available literature, discussions with experts and stakeholders, as well as information on past policy change processes. Results suggest that, over the last decade, changes to fisheries policy have largely been triggered by the performance of the sector itself and how it is perceived, particularly with respect to resource management and to socio-economic outcomes. Other important factors stand out, in particular initiatives by people in charge of fisheries management and legal commitments to adopt changes. Macroeconomic and macro-political factors, however, appear to have had less impact on fisheries policy than on other policy domains. Key recommendations are proposed to facilitate policy change in the future through better use of data, commitment mechanisms, non-sectoral policies, and consultation processes. Classification-JEL: Q22; Q28; D72; H83 Keywords: Fisheries reforms, IUU Creation-Date: 2019-03-18 Number: 127 Handle: RePEc:oec:agraaa:127-EN Template-type: ReDIF-Paper 1.0 Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Author-Name: Hélène Le Boëdec Author-Workplace-Name: Sciences Po, Paris Title: Navigating pathways to reform water policies in agriculture Abstract: This report offers a guide on potential reform pathways towards sustainable agriculture water use, based on a thorough review of selected past water and agriculture reforms and extensive consultation with policy experts. A theory of change is developed that emphasises the importance of flexibility in the timing and design of reform processes to achieve practical and effective policy changes. Governments should prepare future reforms, via continued research, education, and governance efforts, to help take advantage of reform opportunities when the timing is right. Five necessary conditions are identified for a successful reform process: (i) support evidence-based problem definition, objective setting and evaluations; (ii) ensure that governance and institutions are aligned with the policy change; (iii) engage stakeholders strategically and build trust; (iv) rebalance economic incentives to mitigate short run economic losses; and (v) define an adjustable smart reform sequencing that provides flexibility in the long run. These conditions are found to be necessary to implement four challenging policy changes: charging water use in agriculture; removing subsidies that negatively impact water resources, regulating groundwater use and addressing nonpoint source pollution. But the relative effort that governments need to devote to fulfilling each of the five conditions will vary depending on the policy change. Classification-JEL: P48; Q18; Q25; Q28; Q52; Q58 Keywords: Agriculture policy, groundwater, irrigation, nonpoint source pollution, reform process, water governance, water policy, water prices, water subsidies Creation-Date: 2019-03-20 Number: 128 Handle: RePEc:oec:agraaa:128-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shingo Kimura Author-Workplace-Name: OECD Author-Name: Stephan Hubertus Gay Author-Workplace-Name: OECD Author-Name: Wusheng Yu Author-Workplace-Name: University of Copenhagen Title: China’s grains policy: Impacts of alternative reform options Abstract: Reforming China’s grain policy could have significant implications for both domestic and international markets. China has begun to reform its price support policies for several commodities, replacing them with commodity specific area payments. The assessment of policy reform scenarios for grains, using two partial equilibrium models, show that China would maintain more than 80% of self-sufficiency in wheat and maize, and more than 95% in rice. The increase in its grain imports could increase international prices, in particular for wheat and rice. A gradual approach to reforming market price support with compensatory payments would smooth the potential impacts on domestic and world commodity markets, as well as on domestic farm income. While the reform of price support policies benefit consumers the most, more decoupled area payments could also have a greater impact on farm income without increasing the overall cost to society as well as environmental performance of agriculture. Lower costs of managing public grain stocks would equally reduce the budgetary cost of reforms. Classification-JEL: Q11; Q17; Q18; F14 Creation-Date: 2019-05-13 Number: 129 Handle: RePEc:oec:agraaa:129-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Workplace-Name: OECD Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Title: Evaluating the environmental impact of agricultural policies Abstract: The relationship between agricultural support policies (adapted from the OECD Producer Support Estimate (PSE) classification) and a selection of environmental impacts are analysed in a range of country settings, using a farm-level and a market-level model. Based on the methods and environmental indicators used, market price support and payments based on unconstrained variable input use were the most environmentally harmful among the various PSE measures. Decoupled support payments based on non-current crop area were the least harmful, even when considering their impacts on the behaviour of risk averse farmers. The impacts of support policies that clearly change the competitiveness of one production activity in relation to another, such as payments based on current crop area or on animal numbers, were more equivocal. Support payments subject to environmental constraints can improve environmental outcomes compared to coupled support without restrictions, however, they can also have unintended environmental impacts. Classification-JEL: Q12; Q15; Q18 Keywords: biodiversity, GHG, nitrogen runoff, nutrient balance, producer support Creation-Date: 2019-05-13 Number: 130 Handle: RePEc:oec:agraaa:130-EN Template-type: ReDIF-Paper 1.0 Author-Name: John T. Saunders Author-Workplace-Name: Lincoln University Author-Name: Marcel Adenäuer Author-Workplace-Name: OECD Author-Name: Jonathan Brooks Author-Workplace-Name: OECD Title: Analysis of long-term challenges for agricultural markets Abstract: The Long-term Agricultural Outlook model (LAO) is a long-run partial equilibrium trade model developed by the OECD as a complementary modelling tool to AGLINK-COSIMO, a more detailed partial equilibrium model used to develop ten-year projections for agricultural markets, as reported in the annual OECD-FAO Agriculture Outlook publication. LAO describes the drivers of structural changes in global supply and demand, provides a baseline of real agricultural prices, and can be used to situate short and medium term price projections in a longer-term context. The model is also suitable for performing scenario analysis of long-term issues concerning agriculture, such as the links between food security and climate change. The model structure is similar to that of AGLINK-COSIMO, which enhances comparability, but much simpler, with highly aggregated commodity and regional groupings. The simplified structure makes it possible to make use of data on productivity growth in a way not possible in more complex models, and to investigate the role of long term drivers of productivity growth, in particular research spending. It also facilitates a focus on key macro-economic drivers of agricultural market developments. This report details the motivation, structure, and development of the model, alongside initial outputs. The baseline results indicate a lowering of real agricultural prices in the long run, as growth in global supply outpaces growth in global demand. Classification-JEL: C6; C69; F1 Keywords: agricultural prices, agricultural productivity, climate change, food security, long-run analysis, partial equilibrium, total factor productivity, trade modelling Creation-Date: 2019-07-10 Number: 131 Handle: RePEc:oec:agraaa:131-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michael Ryan Author-Workplace-Name: OECD Title: Evaluating the economic benefits and costs of antimicrobial use in food-producing animals Abstract: Antimicrobial drugs are used in food animal production for several purposes: to treat a disease outbreak, to prevent disease, and to enhance feed efficiency and animal growth. While the technical benefits of antimicrobial use in animal production are well documented, there is a major lack of information on the economic impact on farmers’ incomes. This report reviews evidence on the economic benefits and costs of antimicrobials for the major animal producing species across several OECD countries as well as in Brazil and China. The findings indicate that the economic benefits are modest in modern farming systems where good production facilities, biosecurity measures, and management practices are in place. In large food animal producing countries such as Brazil, the use of antimicrobials is an important input to enhance the competitiveness of the industry. In China, the largest producer and user of antibiotics in animal production, antibiotics are often used as a substitute for less sanitary animal production facilities and the lack of appropriate biosecurity on the farm. This report concludes with several key policy options and practices, in particular those that induce farmers to place a greater emphasis on the economic benefits and costs of antimicrobials and alternative interventions in production in order to stem the rise in antimicrobial resistance. Classification-JEL: Q1 Keywords: antibiotics, farm animals Creation-Date: 2019-07-10 Number: 132 Handle: RePEc:oec:agraaa:132-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chantal Morel Author-Workplace-Name: London School of Economics Title: Transmission of antimicrobial resistance from livestock agriculture to humans and from humans to animals Abstract: The emergence of a resistant pathogen reduces the effectiveness of antibiotics in preventing or treating an infection caused by a micro-organism, thus increasing morbidity and mortality and leading to higher economic costs to livestock producers. An understanding of the underlying disease dynamics is crucial in finding appropriate solutions to containing the rise in antimicrobial resistance. This report synthesises the evidence on the potential modes of transmission of antimicrobial resistance between humans and animals and vice versa. In particular, the important role of the environment in the transmission chain is discussed as well as practices to break this link. This report also illustrates some of the commonly shared antibiotic classes that are used in human medicine and animal production, and the overall trends in the usage of these antibiotics. While information on transmission of resistance is sparse, the report highlights several priority areas where future research could focus in order to bring a greater understanding of these interactions. Classification-JEL: Q1 Keywords: antibacterial, DNA Creation-Date: 2019-07-10 Number: 133 Handle: RePEc:oec:agraaa:133-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ziping Wu Author-Workplace-Name: Queen's University Belfast Title: Antibiotic use and antibiotic resistance in food-producing animals in China Abstract: The People’s Republic of China is an important player in international markets for animal products, antibiotics, as well as in global efforts to combat antibiotic resistance (AMR). This paper reviews use of antibiotics and the emergence of AMR in Chinese food animal production. The rapid growth in food, animal production, and the relatively poor animal production conditions as well as increasing production intensity led to a sharp increase in antibiotic use in both absolute and relative terms. This trend, however, has been reversed by recent government policies and public awareness of AMR. Four government policies are particularly important in attempting to decrease the use of antibiotics: the imposition of maximum residue levels, establishing a list of permitted antibiotics, the proper use of antibiotics during the withdrawal period, and establishing a list of prescription-only antibiotics use in animal production. Antibiotic use in China is more than five times higher than the international average. One of the main reasons for the relative higher antibiotic usage is the widespread misuse associated with growth promotion in the feed and veterinary use on broiler and pig farms. The relatively low cost of antibiotics, estimated at 1% to 3% of production costs, encourages such excess use in livestock production, but alternatives are often not available and more costly. This paper recommends a mix of economic and regulatory approaches to control the overuse of antibiotics in livestock production and limit the rise in antimicrobial resistance. Classification-JEL: Q1 Keywords: AMR, antimicrobial Creation-Date: 2019-07-10 Number: 134 Handle: RePEc:oec:agraaa:134-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marisa Cardoso Author-Workplace-Name: Universidade Federal do Rio Grande do Sul Title: Antimicrobial use, resistance and economic benefits and costs to livestock producers in Brazil Abstract: Brazil is one of the world’s largest producers and exporters of meat and animal products. This report compiles information and data on antimicrobial use and antimicrobial resistance in food-producing animals in Brazil. Antimicrobials are used in food producing animals, mainly as a growth promoter. While the use of antibiotics is estimated to be falling, there is concern amongst livestock producers as to the possible rise in production costs resulting from the withdrawal of these antibiotics, and they are currently exploring alternative interventions and their likely economic impact on their incomes. Recent regulatory and policy changes, including the implementation of the National Action Plan on Antimicrobial Resistance in Agriculture, are aimed at limiting the use of antibiotics in livestock production and containing the rise in antimicrobial resistance. Classification-JEL: Q1 Keywords: antibiotics Creation-Date: 2019-07-10 Number: 135 Handle: RePEc:oec:agraaa:135-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dimitris Diakosavvas Author-Workplace-Name: OECD Author-Name: Clara Frezal Author-Workplace-Name: OECD Title: Bio-economy and the sustainability of the agriculture and food system: Opportunities and policy challenges Abstract: The bio-economy is gaining increasing prominence in the policy debate, with several countries developing bio-economy strategies to decouple economic growth from dependence on fossil fuel, as well a pathway to supporting some of the UN Sustainable Development Goals (SDGs) and commitments under the Paris Climate Agreement. This report analyses the opportunities and policy challenges facing the bio-economy in transitioning to a more sustainable agro-food system. It provides an overview of national bio-economy- strategies based on a literature review and information provided by governments in response to a questionnaire. Classification-JEL: P48; Q2; Q18; Q28; Q52; Q57; Q58 Keywords: agro-food system, Bio-economy, coherence, innovation, monitoring, policy instruments, sustainability Creation-Date: 2019-09-12 Number: 136 Handle: RePEc:oec:agraaa:136-EN Template-type: ReDIF-Paper 1.0 Author-Name: Céline Giner Author-Name: Jonathan Brooks Title: Policies for encouraging healthier food choices Abstract: What is the role of government policies in encouraging healthier food choices to fight the current overweight and obesity epidemics? This report briefly examines the evidence base on unhealthy diets, including the associated burden on health systems. It then takes stock of current knowledge on the effectiveness of policy instruments to tackle unhealthy diets and proposes a four-track policy approach to encourage healthier food choices that is consistent with wider objectives for the food and agriculture sector. This policy approach includes demand side public interventions, voluntary collaboration with the food industry at the supply-demand interface, firmer regulations when public-private incentives are misaligned, and fiscal measures. This report underscores the importance of a robust evidence base for developing effective policies, which in turn requires investments in effective data systems. The Annex takes stock of how well developed food data systems are currently across a range of OECD countries and provides some recommendations on how to move forward. Classification-JEL: Q18; I18; C90; M38 Keywords: data systems, food chain, food choices, health policies, obesity, overweight Creation-Date: 2019-10-28 Number: 137 Handle: RePEc:oec:agraaa:137-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Workplace-Name: OECD Author-Name: Marcel Adenäuer Author-Workplace-Name: OECD Title: China’s grain reserves, price support and import policies: Examining the medium-term market impacts of alternative policy scenarios Abstract: In 2016, the People’s Republic of China removed its support prices for maize and started destocking its large public reserves of maize. This paper investigates what would happen if China were to also eliminate its support prices for rice and wheat and reduce its public stocks of these two commodities. The analysis examines domestic and international market impacts over the next ten years by comparing a baseline (or business-as-usual scenario) with three scenarios that each assume support prices are eliminated but incorporate different assumptions about China’s import policies. To account for the uncertainty about China’s actual stock levels, the baseline and three scenarios are conducted under a minimum and maximum stock level assumption. The results show that the impacts will be most pronounced during the first years when temporary public stocks are depleted, with strong drops in domestic prices and reduced production. Over the medium term, domestic prices are projected to recover but will remain below baseline levels. The analysis also shows that even though the actual size of stocks has no significant impact over the medium term, its impact can be substantial during the first years a new policy is implemented, which underscores the importance of transparency when reporting on stock levels and stockholding policies. Classification-JEL: F13; F14; Q11; Q17; Q18 Keywords: agricultural policy reform, cereals, China, partial equilibrium model, stocks, TRQ Creation-Date: 2020-02-04 Number: 138 Handle: RePEc:oec:agraaa:138-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Global value chains in agriculture and food: A synthesis of OECD analysis Abstract: This report synthesises the key findings and policy messages from recent OECD work on global value chains (GVCs) in agriculture and food. The food and agriculture sector is increasingly organised within GVC around a number of global hubs. Agro-food GVCs have broadened the gains from specialisation and trade through stronger sector and employment growth. Openness to trade, especially services trade, can positively influence domestic value added creation in agro-food GVCs. However, trade protection and distorting agricultural support policies can reduce the gains from GVC participation and impose costs along the value chain. Government policies need to focus on facilitating participation in GVCs and helping to manage any adjustments across the food and agriculture sectorKeywords: Agro-food, value added, employment, policy reform, trade. Classification-JEL: Q17; F60; F14 Keywords: agricultural trade, employment, global value chains, policy reform, services, trade in value added Creation-Date: 2020-02-04 Number: 139 Handle: RePEc:oec:agraaa:139-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gwendolen DeBoe Author-Workplace-Name: OECD Title: Economic and environmental sustainability performance of environmental policies in agriculture Abstract: This report reviews the literature on the effects of agri-environmental policies on environmental sustainability and economic performance in agriculture. Examining these twin impacts is essential for understanding the scope for “win-win” policies which improve both types of performance, and where trade-offs between economic and environmental objectives may arise. The review considers findings on several underlying questions: i) whether agri-environmental policy instruments successfully deliver on their objectives to improve the environmental performance of agriculture, and ii) whether agri-environmental policy instruments slow down productivity growth or if they contribute to stimulating productivity growth and improved environmental outcomes. As part of this latter question, this review considers the impacts of agri-environmental policies on innovation, economic performance and structural change in agriculture. It brings together literature from across a range of disciplines, including evidence from over 160 papers. As a whole, the reviewed literature identifies significant “room for improvement” in both the effectiveness of agri-environmental policies for improving agricultural sustainability and their economic efficiency, particularly in relation to hybrid instruments (e.g. cross-compliance) and voluntary agri-environmental schemes (AES). Classification-JEL: Q15; Q18 Keywords: AES, agri-environmental policy, economic performance, environmental sustainability, innovation, Porter Hypothesis Creation-Date: 2020-02-04 Number: 140 Handle: RePEc:oec:agraaa:140-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gwendolen DeBoe Author-Workplace-Name: OECD Title: Impacts of agricultural policies on productivity and sustainability performance in agriculture: A literature review Abstract: This report reviews the evidence base on how agricultural policies impact environmental sustainability and productivity of the agriculture sector, including the potentially contradictory signals policies may send. It considers impacts for specific policy types, classified according to the OECD’s Producer Support Estimate (PSE) classification for agricultural support. At the farm level, key pathways for environmental impacts identified in the literature are firstly incentivising a change in agricultural production at the intensive margin, extensive margin or entry-exit margin, and secondly the dynamic impacts of land use choice. Beyond this, policies can also affect agriculture’s environmental performance by stimulating (or stifling) the provision of environmental services. Environmental impacts from agricultural policy depend on several factors. Individual responses to economic incentives created by agricultural policies vary, producing variations in environmental impacts. Variation also occurs due to location-specific physical factors, including landscape characteristics, as well as the cumulative effects of decisions across actors and across time. Finally, impacts may differ across scales. Classification-JEL: Q15; Q18 Creation-Date: 2020-02-05 Number: 141 Handle: RePEc:oec:agraaa:141-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jibran J. Punthakey Author-Workplace-Name: OECD Title: Foreign direct investment and trade in agro-food global value chains Abstract: Foreign direct investment (FDI) and trade are driving forces in agro-food global value chains (GVCs), allowing companies to spread their activities across countries in complex production chains. This study explores the landscape of FDI in the agriculture and food sectors, using a novel database of mergers and acquisitions (M&As) covering the period 1997-2017. The study finds that FDI plays an important role in driving participation in agro-food GVCs, underscoring the close interdependencies between FDI, trade, and the various other channels that multinational enterprises (MNEs) use to engage with GVCs. The results from a survey of agro-food MNEs suggest that FDI decisions are underpinned by a diverse range of strategic motivations that go beyond commercial considerations and market-related factors. In particular, open, transparent and predictable trade and investment policies can have a strong positive influence on agro-food FDI. The study also highlights the importance of a broader set of policy areas, including dynamic agricultural innovation systems, policies to support supply chain linkages, and strong and effective laws governing responsible business conduct. Classification-JEL: F21; F23; F60; Q17; Q18 Keywords: Agriculture, FDI, GVCs, M&As, Mergers and Acquisitions, MNEs, Multinational Enterprises Creation-Date: 2020-04-29 Number: 142 Handle: RePEc:oec:agraaa:142-EN Template-type: ReDIF-Paper 1.0 Author-Name: Johannes Sauer Author-Workplace-Name: Technical University of Munich Author-Name: Catherine Moreddu Author-Workplace-Name: OECD Title: Drivers of farm performance: Empirical country case studies Abstract: This report contains an empirical analysis of the productivity and sustainability performance of different types of farms in thirteen countries. Farm productivity performance is measured through estimates of average productivity levels and through annual rates of technical change. Evidence on the environmental sustainability of farm groups is based on an index that reflects environmental pressure per hectare and the local environmental sustainability of production practices. In addition to environmental sustainability, the analysis also considers fundamental differences across farms with respect to farm structure, innovation of operations, individual characteristics as well as farm location. Productivity performance by farm classes is related to the environmental sustainability performance and to other farm characteristics in order to shed light on the factors that drive or impede farm performance. Empirically identifying the main conditions for and obstacles to performance improvement supports the development of effective and efficient policies targeting the performance of farms. This analysis contributes in particular to a better understanding of the synergies and trade-offs between productivity and environmental sustainability performance. Classification-JEL: D24; O31; O33; Q12; Q18 Keywords: agricultural policy, agriculture, drivers of performance, environmental sustainability, farm structure, innovation, productivity, technical change, technology Creation-Date: 2020-06-08 Number: 143 Handle: RePEc:oec:agraaa:143-EN Template-type: ReDIF-Paper 1.0 Author-Name: Guillaume Gruère Author-Workplace-Name: OECD Author-Name: Makiko Shigemitsu Author-Workplace-Name: OECD Author-Name: Scarlett Crawford Author-Workplace-Name: University Paris-Est Créteil Title: Agriculture and water policy changes: Stocktaking and alignment with OECD and G20 recommendations Abstract: This report takes stock of agriculture and water policy changes from 2009 to 2019 and assesses the alignment of these changes with relevant sections of the OECD Council Recommendation on Water and the 2017 G20 Agriculture Ministerial Action Plan on water and food security. The analysis builds on results from a 2019 survey on agriculture and water policy changes which gathered responses from 38 countries – including OECD countries, Costa Rica, Colombia, and Cabo Verde – and the European Union. A methodology was developed to convert survey responses into indices of alignment of policy changes with OECD and G20 recommendations. Results show that changes in water and agriculture policies from 2009 to 2019 were uneven across countries and investigated policy areas (water governance, water quality, water quantity and water risks), with some countries undertaking important reforms whereas others mainly improved existing policies. On average, alignment indices suggest that agriculture and water policies in responding countries progressed towards the OECD Council Recommendation on Water. In order to advance further, relatively water abundant countries should pay attention to their approach to manage water quantity and risks under climate change, all countries should consider improving their policies to reduce pollution from agriculture, and selected countries should consider making additional efforts to recover water charges and to use pricing instruments, in line with the OECD Council Recommendation on Water. Policy changes by responding G20 member countries have also been in the direction of the 2017 G20 Agriculture Ministerial Action Plan. However, some of these changes are partial, particularly those on water use efficiency and resilience, and those supporting responsible investment in agriculture and water. Classification-JEL: Q18; Q25; Q28; Q58 Keywords: policy evaluation, reform process, Water governance, water pollution, water risks, water scarcity Creation-Date: 2020-07-09 Number: 144 Handle: RePEc:oec:agraaa:144-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Workplace-Name: OECD Author-Name: Clara Frezal Author-Workplace-Name: OECD Author-Name: Eimear Flynn Author-Workplace-Name: OECD Title: A survey of GHG mitigation policies for the agriculture, forestry and other land use sector Abstract: In light of the urgency for policy action to address climate change, this report provides the first detailed global catalogue of targets and policies for mitigating greenhouse gas emissions in the Agriculture, Forestry and Other Land Use (AFOLU) sector. It covers 20 countries which collectively account for nearly half of the world’s AFOLU emissions. Most of these countries have recently set targets within their AFOLU sector as part of national climate mitigation strategies and commitments, although these targets are only legally-binding for two countries. However, policies to incentivise emission reductions and achieve these targets still need to be developed. Consequently, policy efforts will need to intensify for the AFOLU sector to contribute effectively to limiting global temperature increases to well below 2°C, and especially to meet the more ambitious 1.5°C target of the Paris Agreement. Classification-JEL: Q15; Q18; Q54; Q58 Keywords: Climate Change, LULUCF, NDCs, Paris Agreement Creation-Date: 2020-10-15 Number: 145 Handle: RePEc:oec:agraaa:145-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marie-Agnes Jouanjean Author-Workplace-Name: OECD Author-Name: Francesca Casalini Author-Workplace-Name: OECD Author-Name: Leanne Wiseman Author-Workplace-Name: Griffith University Author-Name: Emily Gray Author-Workplace-Name: OECD Title: Issues around data governance in the digital transformation of agriculture: The farmers’ perspective Abstract: Agricultural data and their use for better decision-making and innovation are at the core of the digital transformation of agriculture. But fragmented and unclear data governance arrangements may weaken farmers’ willingness to adopt digital solutions. This, in turn, may reduce the availability and accessibility of agricultural data for policymaking, for the agricultural innovation system, and for developing services for farmers. A key challenge for policy makers lies in finding a balance between protecting the privacy and confidentiality of agricultural data, and farmers’ economic interests in those data, while making it possible to leverage their potential for the sector’s growth and innovation. This report focuses on farmers’ concerns around access, sharing and use of agricultural data and explores whether and how existing policy frameworks and other sectoral initiatives can help to foster greater trust. Classification-JEL: Q13; Q16; L14 Keywords: data cooperatives, data ownership, innovation policy Creation-Date: 2020-10-23 Number: 146 Handle: RePEc:oec:agraaa:146-EN Template-type: ReDIF-Paper 1.0 Author-Name: Julien Gourdon Author-Name: Susan Stone Author-Name: Frank van Tongeren Title: Non-tariff measures in agriculture Abstract: Sanitary and Phytosanitary (SPS) provisions and Technical Barriers to Trade (TBT) generally raise trade costs, but by providing a positive signal to consumers that enhances confidence in imported products they can also expand trade. This paper seeks to identify which specific elements of SPS and TBT measures are particularly trade enhancing. It investigates the trade cost and trade enhancing effects of SPS and TBT measures along with other types of NTMs in agricultural trade. It provides estimations on the quantity and price effects on 34 SPS and 24 TBT measures.The econometric results show that technical measures can increase import prices of agricultural products by nearly 15%, most of which comes from restriction or special authorisation for TBT or SPS reasons, such as registration requirements. Conformity assessment also tends to significantly increase the cost of trade. Trade enhancing effects are identified for labelling and packaging requirements, which are also the measures with relatively low associated trade costs Classification-JEL: C21; F13; F14; L51 Keywords: SPS, TBT, Trade costs Creation-Date: 2020-11-20 Number: 147 Handle: RePEc:oec:agraaa:147-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tom Baragwanath Title: Digital opportunities for demand-side policies to improve consumer health and the sustainability of food systems Abstract: Digital tools and technologies can assist governments to improve consumer health and the sustainability of food systems. These tools can be used to encourage consumers to buy healthy and nutritious foods and foods produced through sustainable farming practices, as well as to reduce asymmetries of food labelling schemes. They also contribute to more effective food data collection systems that can inform policy decisions, including by combining commercial sales information with national dietary intake survey data. Given the diverse approaches to adopting these digital tools, there is scope for cross-country learning. Current use of digital technologies by some governments ‒ from national dietary guideline websites to dedicated mobile apps ‒ can serve as references for other countries that seek to develop their own digital programmes. While these tools offer useful mechanisms for advancing policy objectives, they will need to be carefully designed to maximisetheir effectiveness and regularly evaluated to avoid excess cost and duplication. Classification-JEL: I18; M38; O38; Q18 Keywords: behavioural insights, dietary intake surveys, food waste labelling, obesity Creation-Date: 2021-01-14 Number: 148 Handle: RePEc:oec:agraaa:148-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Workplace-Name: OECD Author-Name: Stefan Frank Author-Workplace-Name: International Institute for Applied Systems Analysis Author-Name: Petr Havlik Author-Workplace-Name: International Institute for Applied Systems Analysis Author-Name: Hugo Valin Author-Workplace-Name: International Institute for Applied Systems Analysis Title: Policy strategies and challenges for climate change mitigation in the Agriculture, Forestry and Other Land Use (AFOLU) sector Abstract: This study uses GLOBIOM ‒ the most detailed global economic model of agriculture, land use and greenhouse gas (GHG) emissions ‒ to assess the effectiveness of different policies in cutting net emissions from the Agriculture, Forestry and Other Land Use (AFOLU) sector, with a view to helping limit long-term global temperature increases to 1.5°C and 2°C. Trade-offs between emission reductions and impacts on food producers, consumers and government budgets are also evaluated for each policy package. A full complement of policy options is deployed globally across AFOLU, comprising emission taxes for emitting AFOLU activities and subsidies rewarding carbon sequestration. Using a carbon price consistent with the 2°C target (1.5°C target), this is projected to mitigate 8 GtCO2 eq/yr (12 GtCO2 eq/yr) in 2050, representing 89% (129%) reduction in net AFOLU emissions, and 12% (21%) of total anthropogenic GHG emissions. Nearly two-thirds of the net emission reductions are from the Land Use, Land-Use Change and Forestry (LULUCF) component of AFOLU, mostly from reduced deforestation. A global carbon tax on AFOLU is found to be twice as effective in lowering emissions as an equivalently priced emission abatement subsidy because the latter keeps high emitting producers in business. However, a tax has trade-offs in terms of lower agricultural production and food consumption, which a subsidy avoids. A shift to lower emission diets by consumers has a much smaller impact on reducing agricultural emissions than any of the policy packages involving taxes on emissions. Classification-JEL: C61; F18; Q11; Q18; Q54; Q56; Q58 Keywords: Abatement subsidy, GHG emission tax, Paris Agreement Creation-Date: 2021-01-28 Number: 149 Handle: RePEc:oec:agraaa:149-EN Template-type: ReDIF-Paper 1.0 Author-Name: Olivia Placzek Title: Socio-economic and demographic aspects of food security and nutrition Abstract: In OECD countries, socio-economically disadvantaged groups tend to consume less nutritious food, leading to suboptimal health outcomes, including obesity. Contributing factors include low levels of income and education; time-poor single parent households; and the prevalence and accessibility of fast food restaurants. More broadly, food insecurity also remains a problem in OECD countries, with Indigenous Peoples being particularly vulnerable. Foodbanks run by non-governmental organisations provide emergency food assistance, sometimes using food recovered as part of food waste policies; however, the sustainability of this approach is contested. Understanding the role that socio-economic and demographic factors play in determining household food purchases and consumption is limited by inadequate and irregular food data collection, including on the prevalence of food insecurity. Lack of data is also hampering evaluation of the effectiveness of policies in addressing the needs of particular socio-economic and demographic groups. Classification-JEL: I18; I38; M38; Q18 Keywords: COVID-19, Food marketing, Foodbanks, Indigenous Peoples, Obesity Creation-Date: 2021-02-10 Number: 150 Handle: RePEc:oec:agraaa:150-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Workplace-Name: OECD Title: Concentration and market power in the food chain Abstract: Concerns about market power and competition in the agri-food sector are widespread, with commentators regularly suggesting that farmers are in a structurally weaker position than other actors, who therefore benefit at their expense. The evidence reviewed in this paper indicates that downstream segments of agri-food chains are indeed typically more concentrated than farm-level production. Nevertheless, while competition problems were found in some instances, the current evidence does not support the claim that stronger actors in the chain systematically abuse their stronger position at the expense of farmers. An in-depth understanding of how value chains are organised is essential, as many widely used indicators provide little relevant information. In many areas, further research would be welcome, as current evidence does not cover all countries and sectors equally well. Classification-JEL: L1; L2; L66; Q13 Keywords: Buyer power, Competition, Profit margins, Unfair trading practices Creation-Date: 2021-02-17 Number: 151 Handle: RePEc:oec:agraaa:151-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Digital opportunities for Sanitary and Phytosanitary (SPS) Systems and the trade facilitation effects of SPS Electronic Certification Abstract: Countries are increasingly using digital technologies within their Sanitary and Phytosanitary (SPS) systems and the disruptions caused by the COVID-19 pandemic are accelerating this evolution. While countries are increasing their use of digital tools, digital technologies still have significant potential to create efficiencies in SPS systems and enhance agro-food trade. Quantitative analysis using structural gravity model estimates show that digital technologies such as SPS electronic certificates have positive effects on trade volumes, notably for plant-based, vegetables and processed food products. Despite these gains, significant challenges remain in expanding the use of digital technologies in agro-food trade, including mixed capacities to adopt these technologies. Successful expansion of the use of digital technologies requires careful planning and long-term investments, as well as sharing expertise and building trust in these tools. Targeted financial assistance and capacity building can provide support to countries currently lacking the capabilities to adopt these tools. Classification-JEL: F13; F66; J16 Keywords: Agriculture and food standards, COVID-19, Digitilisation, Gravity estimation, Market access Creation-Date: 2021-03-24 Number: 152 Handle: RePEc:oec:agraaa:152-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michael Ryan Title: Assessing national action plans on antimicrobial resistance in animal production: What lessons can be drawn? Abstract: Global efforts to combat the risks posed by antimicrobial resistance (AMR) depend on effective implementation of national action plans. Most countries have taken a One Health approach in developing their national action plans covering human health, animal health and the environment. Evidence on the implementation of these plans in livestock agriculture across six OECD countries, as well as in Brazil, the People’s Republic of China, and the Russian Federation, highlights the need for greater co-ordination and coherence amongst stakeholders in implementing workable solutions. This includes developing integrated surveillance and monitoring systems, improving regulations on the availability of antibiotics, and improving on-farm biosecurity practices. Additional efforts to enhance public awareness, to improve education and training, and to explore alternative interventions and innovations to antimicrobials in animal health and animal welfare could also improve outcomes in this area. The lack of long-term funding continues to hinder the implementation of national action plans on AMR. Classification-JEL: Q13 Keywords: Biosecurity, Critically important antibiotics, Disease prevention, One Health Creation-Date: 2021-03-30 Number: 153 Handle: RePEc:oec:agraaa:153-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tatsuji Koizumi Author-Workplace-Name: OECD Author-Name: Stephan Hubertus Gay Author-Workplace-Name: OECD Author-Name: Gen Furuhashi Author-Workplace-Name: Policy Research Institute, MAFF Title: Reviewing Indica and Japonica rice market developments Abstract: Indica and Japonica are the two major types of rice traded on the global market. Product characteristics, production zones, consumer preferences, and government policies influence Indica and Japonica rice market structures. Using the Rice Economy Climate Change (RECC) model, which covers these rice markets in 24 countries and the global rice market, the international Japonica rice price is found to be more volatile than that for Indica rice under possible climate change scenarios. The simulation results also suggest that agricultural investments in major countries producing Indica and Japonica rice will contribute to their price stability over the medium and long term under climate change. Classification-JEL: C63; Q11; Q16; Q17 Keywords: Agricultural investments, Climate change, Price stability Creation-Date: 2021-04-09 Number: 154 Handle: RePEc:oec:agraaa:154-EN Template-type: ReDIF-Paper 1.0 Author-Name: Santiago Guerrero Title: Characterising agri-environmental policies: Towards measuring their progress Abstract: This report proposes a taxonomy of policy design features for agri-environmental payment schemes, with a focus on those features that are conducive to policy cost-effectiveness. An application of the taxonomy to all agri-environmental payment schemes in six countries (Argentina, Australia, Estonia, Finland, Korea, and Portugal) reveals that more than 70% of 85 agri-environmental payment schemes have some of these key design features, including establishment of baselines; rates based on estimated or actual implementation costs; inspections and penalties; contract flexibility; and technical assistance. That said, at least 80% of the schemes could be improved, including by: use of cost-effectiveness criteria for selecting recipients; moving from supporting the adoption of specific practices to focusing on achievement of environmental outcomes; more regular policy evaluations; and comprehensive collection of information on policy characteristics. An in-depth application of the taxonomy to Korea illustrates the potential of this taxonomy for country policy monitoring and evaluation purposes. Classification-JEL: Q15; Q18; Q58 Keywords: Agri-environmental payments, Cost-effectiveness, Monitoring and evaluation, Policy indicators Creation-Date: 2021-04-19 Number: 155 Handle: RePEc:oec:agraaa:155-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clara Frezal Author-Name: Stephan Hubertus Gay Author-Name: Claude Nenert Title: The Impact of the African Swine Fever outbreak in China on global agricultural markets Abstract: In China, the outbreak of the African Swine Fever is expected to result in a 27% drop in the production of pigmeat, the country’s most consumed meat product. Using the OECD-FAO Aglink-Cosimo model, this paper examines the impact of this production shortfall on global markets for livestock products and animal feed over the short and the medium term. In particular, it compares outcomes if the changes induced by the ASF outbreak in China are temporary with outcomes that could result if current changes lead to a restructuring of Chinese protein demand. Classification-JEL: C61; F17; Q11; Q17 Keywords: Agricultural trade, Feed market, Pandemic, Pigmeat Creation-Date: 2021-05-10 Number: 156 Handle: RePEc:oec:agraaa:156-EN Template-type: ReDIF-Paper 1.0 Author-Name: Joseph Glauber Author-Workplace-Name: International Food Policy Research Institute Author-Name: Katherine Baldwin Author-Workplace-Name: OECD Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Urszula Ziebinska Author-Workplace-Name: OECD Title: Design principles for agricultural risk management policies Abstract: Government support for agricultural risk management tools has grown substantially over the past two decades. While these tools can play a role in strengthening farm-level resilience by helping farmers to cope with the financial impact of adverse events, they also modify farmers’ incentives to invest in risk-reducing measures and market tools. Policy design is critical to maximise effectiveness while minimising unintended consequences. This report reviews the accumulated experience on four types of publicly-supported agricultural risk management tools (ex post disaster aid, agricultural insurance, income stabilisation schemes and tax and savings measures). It suggests some basic principles on how countries can improve the design of their agricultural risk management policies, using a holistic approach and focusing on market failures. The report also highlights the need for more transparency on basic programme data, and for periodic public evaluation of existing programmes. Classification-JEL: Q18; Q54; H84; G22; G32 Keywords: Agricultural Insurance, Disaster aid, Resilience Creation-Date: 2021-05-10 Number: 157 Handle: RePEc:oec:agraaa:157-EN Template-type: ReDIF-Paper 1.0 Author-Name: Katherine Baldwin Author-Name: Francesca Casalini Title: Building the resilience of Italy’s agricultural sector to drought Abstract: Increasingly frequent and severe droughts are threatening Italy’s agricultural sector. With climate change forecast to accelerate these trends, the sector must build long-term resilience. This will require better planning and preparing for, absorbing the impact of, and recovering from droughts, as well as more successfully adapting and transforming in response to these events. Recent positive developments include improved data collection on water supplies and agricultural damage and loss from natural hazards to better inform water management and investment decisions; strengthened commitment to ex ante risk management frameworks; and more participatory approaches for water management. Nevertheless, the agricultural policy portfolio currently underemphasises investments in on-farm preparedness and adaptation, in favour of coping tools such as insurance. Further efforts to build agricultural resilience could benefit from a holistic, long-term sectoral risk management strategy; an evaluation of the trade-offs between spending on risk coping tools versus investments in natural hazard preparedness and measures to mitigate their impacts; and more explicit consideration of farmer demographics and capacities in policy design. Classification-JEL: Q54; Q18; Q15; Q16; Q25 Keywords: Agriculture risk management, Drought, Resilience, Water governance Creation-Date: 2021-06-01 Number: 158 Handle: RePEc:oec:agraaa:158-EN Template-type: ReDIF-Paper 1.0 Author-Name: Makiko Shigemitsu Author-Name: Emily Gray Title: Building the resilience of Japan’s agricultural sector to typhoons and heavy rain Abstract: Japan is highly exposed to natural hazards, and agricultural producers in Japan have significant experience in managing the risk of natural hazard-induced disasters (NHID). However, recent large-scale typhoons and heavy rain events have highlighted the importance of increasing the sector’s resilience to NHID. A number of current practices build resilience. Disaster risk governance and agricultural policy frameworks are flexible and responsive to evolving NHID risks. Non-structural measures such as hazard maps are increasingly seen as complementary to infrastructure in preventing and mitigating flood risks. Innovative on-farm solutions for mitigating flood risks, such as the paddy field dam, are also increasingly used. Disaster response is rapid, and disaster assistance prioritises helping producers to resume farming. However, agricultural disaster risk management (DRM) must reflect the challenge of more frequent and intense typhoons and heavy rains in the context of ageing and depopulation in rural areas. Public DRM measures should also be complemented by greater efforts from farmers and other stakeholders, such as agricultural co-operatives, to build agricultural resilience to NHID. Classification-JEL: Q54; Q18; Q15; Q16; Q25 Keywords: Agricultural risk management, Heavy rains, Natural Disaster risk, Resilience, Typhoons Creation-Date: 2021-06-01 Number: 159 Handle: RePEc:oec:agraaa:159-EN Template-type: ReDIF-Paper 1.0 Author-Name: Francesca Casalini Author-Name: Morvarid Bagherzadeh Author-Name: Emily Gray Title: Building the resilience of New Zealand’s agricultural sector to floods Abstract: New Zealand’s agricultural sector faces the challenge of building long-term resilience to floods, which are projected to increase due to climate change. The New Zealand agricultural sector receives minimal government support and the policy environment focuses on providing an enabling environment for farmers to build their own resilience capacities, while the government has a more direct, but limited, role during disaster response and recovery. Key good practices include an ex ante framework to discipline ex post assistance to agriculture; incentives for industry groups to develop support resources for farmers; and an emphasis on mental wellbeing following a crisis. Nevertheless, further efforts to strengthen resilience could benefit from: (i) improved data collection to support targeted investments in risk prevention and mitigation; (ii) increased public-private collaboration to develop and diffuse effective solutions for adapting to and mitigating the risks of natural hazard-induced disasters on farms, including by leveraging the renewed engagement on extension services; and (iii) greater commitment to ensuring preparedness and response capacities in rural regions. Classification-JEL: Q54; Q18; Q15; Q16; Q25 Keywords: Agricultural risk management, Floods, Natural disaster risk, Resilience Creation-Date: 2021-06-01 Number: 160 Handle: RePEc:oec:agraaa:160-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emily Gray Author-Name: Katherine Baldwin Title: Building the resilience of the United States’ agricultural sector to extreme floods Abstract: Agricultural producers in the United States have significant experience in managing the risk of natural hazard-induced disasters (NHID), but the 2019 Midwestern Floods and Hurricane Florence in 2018 highlighted the importance of increasing resilience to extreme floods. A number of current practices already build resilience. Producers can access science-based information on adaptation to climate and weather-related risks, preparedness and recovery, including through the USDA Climate Hubs. Formal networks build relationships and capabilities before a disaster, improving the effectiveness of disaster preparedness and response. USDA conservation programmes and various soil health initiatives help farmers to mitigate the impacts of floods on production. However, most farm support is directed to agricultural risk management policies and disaster assistance that help producers cope with the impacts of NHID. Integrating resilience objectives into these programmes would send a clearer signal to producers about the need to adapt and increase resilience. Policy makers should also engage with trusted stakeholders – including farm organisations and extension agents – to promote the benefits of practices that build resilience to NHID ID. Classification-JEL: Q54; Q18; Q15; Q16; Q25 Keywords: Agricultural risk management, Floods, Natural disaster risk, Resilience Creation-Date: 2021-06-01 Number: 161 Handle: RePEc:oec:agraaa:161-EN Template-type: ReDIF-Paper 1.0 Author-Name: Guillaume Gruère Author-Name: Makiko Shigemitsu Title: Measuring progress in agricultural water management: Challenges and practical options Abstract: Measuring policy progress on agriculture and water policies is essential to help decision makers identify necessary policy changes and understand how further progress may be achieved to improve agricultural water management. A thorough review of existing evaluations of agriculture and water policies suggests three types of progress to be measured: policy design, policy implementation capacity and policy results. The quality and robustness of these measures of policy progress depends upon three main factors. First, assessment of policy design requires matching policy alignment with cross cutting objectives or with a reference text. Second, assessment of progress in implementation capacity requires gauging evolution towards predefined capacity needs or identified governance gaps. Third, evaluation of policy results requires clearly defined objectives, timelines and scales for assessments. Seven practical options are identified for applying these principles to agriculture and water policies, illustrated by applying them to assessing progress in the sustainable management of water for irrigation under climate change and in controlling diffuse nutrient pollution. Classification-JEL: Q18; Q25; Q28; Q58 Keywords: Agricultural policy, Policy evaluation, Reform process, Water policy, Water pollution, Water risks, Water scarcity Creation-Date: 2021-06-30 Number: 162 Handle: RePEc:oec:agraaa:162-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: Céline Giner Author-Name: Lee Ann Jackson Author-Name: Lucinda Toyama Title: Overcoming evidence gaps on food systems Abstract: Food systems are expected to provide food security and nutrition, to contribute to the livelihoods of millions, and to do so in an environmentally sustainable way. The broad outlines of these challenges are clear, and in many cases evidence exists on how better policies can improve the performance of food systems. But there are considerable gaps in data and evidence. This paper provides a panoramic overview of different types of evidence gaps on food systems and their causes, and makes the case that better evidence is needed to enable better policies. At the same time, evidence will never be complete. Policy makers and the research community thus need to adopt a pragmatic approach, focusing on where better evidence can make the biggest difference. Classification-JEL: C80; Q01; Q10 Keywords: Data, Evidence gap maps, Impact assessments, Indicators, Sustainable Development goals Creation-Date: 2021-07-08 Number: 163 Handle: RePEc:oec:agraaa:163-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jesús Antón Author-Workplace-Name: OECD Author-Name: Johannes Sauer Author-Workplace-Name: Technical University of Munich Title: Dynamics of farm performance and policy impacts: Main findings Abstract: Increasing productivity at farm level is a key policy objective across most countries and fundamental to the overall performance of agricultural and food systems. This paper applies dynamic statistical methods to farm level data in order to identify the determinants of farm performance over time, in terms of productivity and measures of local sustainability. The analysis sheds light on the effects of policies on productivity, and the links between productivity and sustainability outcomes. It draws on key findings from seven case studies: crop farms in Australia, France, Italy and the United Kingdom (England and Wales); and dairy farms in the Czech Republic, Denmark and Norway, with different sample periods, from the most recent three decades to the last five years. A key finding is that policy changes increasing the degree of decoupling of payments have a positive impact on productivity. Furthermore, with the right incentives, productivity growth can be more locally sustainable insofar as farms can produce more output with less inputs that harm the environment. The detailed background work on the seven samples of crops and dairy farms in the above countries is available in OECD Food, Agriculture and Fisheries Paper N°165. Classification-JEL: D24; O31; O33; Q12; Q18 Keywords: Agricultural policy, Agriculture, Decoupling, Drivers of performance, Environmental sustainability, Farm structure, Innovation, Productivity, Technical change Creation-Date: 2021-07-13 Number: 164 Handle: RePEc:oec:agraaa:164-EN Template-type: ReDIF-Paper 1.0 Author-Name: Johannes Sauer Author-Workplace-Name: Technical University of Munich Author-Name: Will Chancellor Author-Workplace-Name: Australian Bureau of Agricultural and Resource Economics and Sciences Author-Name: Philipp Mennig Author-Workplace-Name: Technical University of Munich Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Dynamics of farm performance and policy impacts: Case studies: Case Studies Abstract: This paper provides detailed farm level data evidence on the dynamics of farm performance from case studies covering crop farms in Australia, France, Italy and the United Kingdom (England and Wales), and dairy farms in the Czech Republic, Denmark and Norway, with different recent sample periods of five to thirty years. An increase in productivity over time is common to all countries and most crop farm classes, but productivity dynamics vary significantly. In Australia, strong productivity growth among the most productive crop farms has led to an increase in the gap between the highest and lowest performing farms; whereas in France, Italy and the United Kingdom, productivity growth was weak among the most productive crop farms and the lowest performing farms closed the productivity gap. Productivity also increased among dairy farms, with an increasing gap between the most and the least productive farm classes in the three sample countries. The impact of policy changes on performance dynamics is analysed for decoupled payments in France and England, and dairy payments in the Czech Republic. The main findings across countries and policy implications are discussed in OECD Food, Agriculture and Fisheries Paper N°164. Classification-JEL: D24; O31; O33; Q12; Q18 Keywords: Agricultural policy, Agriculture, Decoupling, Drivers of performance, Environmental sustainability, Farm structure, Innovation, Productivity, Technical change Creation-Date: 2021-07-13 Number: 165 Handle: RePEc:oec:agraaa:165-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: COVID-19 and food systems: Short- and long-term impacts Abstract: The COVID-19 pandemic placed unprecedented short-term stresses on food supply chains around the world. However, rapid responses by both private-sector actors and policy makers mostly managed to prevent severe disruptions. Yet, even before the outbreak of COVID-19, food systems were faced with a formidable “triple challenge” of simultaneously providing food security and nutrition to a growing global population, ensuring the livelihoods of millions of people working along the food chain from farm to fork, and ensuring the environmental sustainability of the sector. This paper discusses the stresses COVID-19 created in food supply chains and the remarkable resilience these supply chains have demonstrated in high-income countries, as well as specific impacts in the fisheries and aquaculture sectors and the importance of transparency in avoiding a COVID-19 induced food crisis. The paper concludes by discussing the long-term challenges for food systems, arguing that the unanticipated shock of COVID-19 strengthens the case for shifting from ‘business as usual’ policies to a more forward looking policy package for food systems. Classification-JEL: L66; L81; L83; L91; Q17; Q18; Q22 Keywords: Aquaculture, Fisheries, Food security, Lockdown, Nutrition, Stockpiling, Supply chain resilience, Sustainability, Transparency Creation-Date: 2021-07-27 Number: 166 Handle: RePEc:oec:agraaa:166-EN Template-type: ReDIF-Paper 1.0 Author-Name: Morvarid Bagherzadeh Author-Name: Makiko Shigemitsu Title: Building the resilience of Turkey’s agricultural sector to droughts Abstract: Turkey is exposed to multiple natural hazard-induced disasters (NHID) and has considerable experience in managing the associated risks. Drought, in particular, has had significant impacts on the country’s agricultural sector, and the frequency of droughts is expected to increase due to climate change. Existing governance and policy frameworks seek to ensure that the agricultural sector is prepared for, and able to respond to, adverse events as they occur. While these mechanisms contribute to improved resilience, further opportunities exist to strengthen policy processes, in particular by increasing farmer and private sector participation. Classification-JEL: Q15; Q16; Q18; Q25; Q28; Q54 Keywords: Agricultural risk management, Climate change, Insurance, Irrigation Creation-Date: 2021-09-27 Number: 167 Handle: RePEc:oec:agraaa:167-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Name: Csaba Gaspar Author-Name: Marcel Bruins Title: The impact of the COVID-19 pandemic on global and Asian seed supply chains Abstract: Trade in seeds is key to guarantee access to food across the globe. COVID-19 led to concerns that seed supply chains would be disrupted and that countries relying on imported seed would not have sufficient supplies for the upcoming season. Focusing on the impact of COVID-19 from the perspective of seed companies and the formal seed sector, this study shows that the global seed sector was reasonably resilient during the crisis, although seed companies headquartered in the Asia Pacific region were more negatively affected than their counterparts in other regions. The two main bottlenecks were the availability of staff in the seed production chain and in government administrations, and the distribution of seed to farmers. Building a more resilient seed supply chain will require policies to ensure the uninterrupted production and movement of seed during lockdowns; the further development of international seed supply chains; and the diversification of seed production. Digitalisation could also improve the availability of information on seed production and trade, enabling faster government responses to disruptions. Classification-JEL: Q12; Q13; Q16; Q17; Q18 Keywords: Asia, Digitilisation, International supply chain, Vegetable seeds Creation-Date: 2021-10-14 Number: 168 Handle: RePEc:oec:agraaa:168-EN Template-type: ReDIF-Paper 1.0 Author-Name: Theodoros Arvanitopoulos Author-Name: Grégoire Garsous Author-Name: Paolo Agnolucci Title: Carbon leakage and agriculture: A literature review on emissions mitigation policies Abstract: The risks of carbon leakage associated with climate policies in the agricultural sector remains under-researched. Studies to date suggest that carbon pricing policies implemented by a single country, or small group of countries, reduce global emissions but also affect the international competitiveness of these countries’ agricultural sectors and induce carbon leakage. While carbon leakage can be prevented with trade-related measures that adjust emissions prices at the border, such measures applied in developed countries could potentially lead to significant welfare losses for developing countries that heavily rely on agricultural exports. That said, important caveats apply to the reviewed studies: i) from an environmental perspective, estimations of carbon leakage rates alone do not offer a comprehensive assessment of how optimally agricultural activities are allocated across countries; ii) most of the studies estimate the effects of additional environmental policies, such as carbon taxes, and ignore the effects of existing policies, including market distorting and potentially environmentally harmful support for agricultural production. Classification-JEL: F18; O13; Q15; Q17; Q54 Keywords: Climate change, Environmental policies, Trade Creation-Date: 2021-10-27 Number: 169 Handle: RePEc:oec:agraaa:169-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Name: Monika Verma Title: Global assessment of the carbon leakage implications of carbon taxes on agricultural emissions Abstract: Carbon leakage arises when emission reductions in countries applying a carbon tax are offset, partially or completely, by emission increases in countries that do not apply the tax or any other greenhouse gas (GHG) mitigation policies. Analysis using the MAGNET computable general equilibrium model indicates that a carbon tax always lowers global GHG emissions from agriculture, even when it is applied in a small group of countries, provided that producers facing the tax can make use of GHG abatement technologies. This suggests that mitigation policies should be considered in conjunction with investments in research and development on abatement practices and technologies. When a small number of countries adopt a carbon tax, about half of the direct reduction in emissions in adopting counties is offset by higher emissions in non-adopting countries; the rate of carbon leakage declines as the group of countries implementing a carbon tax expands. Higher tax rates stimulate larger global emissions reductions, but also induce higher rates of emissions leakage, thus limiting the mitigation benefits from setting higher tax rates in contexts where few countries adopt the policy. Classification-JEL: C68; F18; O13; Q11; Q17; Q54 Keywords: Climate change, Environmental policies, Mitigation, Trade Creation-Date: 2021-10-27 Number: 170 Handle: RePEc:oec:agraaa:170-EN Template-type: ReDIF-Paper 1.0 Author-Name: Grégoire Garsous Title: Developing consumption-based emissions indicators from Agriculture, Forestry and Land Use (AFOLU) activities Abstract: Understanding consumption-based emissions from Agriculture, Forestry and Land-use (AFOLU) activities is important in developing climate policy for the sector. This paper proposes a new methodology to construct indicators – CBAFOLU indicators ‒ to provide estimates of greenhouse gas (GHG) emissions arising from AFOLU activities (including fisheries) in the global supply chain of finished products. The CBAFOLU indicators identify the countries where emissions are generated and the countries where the goods that “embody” these emissions are eventually consumed. CBAFOLU indicators are provided for bilateral flows of emissions for 65 countries over 2005-15. The indicators also break down emissions by types of GHG: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and CO2 emissions from land use, land-use change, and forestry (LULUCF). Given their preliminary nature, the CBAFOLU indicators should be seen as a first building block in a series of steps to explore the allocation of AFOLU activities across countries through the lens of sustainability; priorities for further work to refine the indicators are also proposed. Classification-JEL: F18; O13; Q15; Q17; Q54 Keywords: Climate change, Environmental policies, Trade Creation-Date: 2021-10-27 Number: 171 Handle: RePEc:oec:agraaa:171-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marcel Adenäuer Title: The role of China’s feed deficit in international grain markets Abstract: International grain prices experienced a sharp increase during the 2020/2021 marketing season, most likely due to the unprecedented increase of imported grains by China. What would be the possible impact on international grain markets if China remains a strong grain importer? The scenario developed to explore the impact of such a development shows that further increases in Chinese grain imports over the medium term could result in a 4% to 25% increase in agriculture commodity prices compared to what was projected in the OECD-FAO Agricultural Outlook 2021-2030. Classification-JEL: C61; F17; Q11; Q17 Keywords: African Swine Fever, Cereal trade, Commodity markets, Food price inflation, Food security Creation-Date: 2022-01-13 Number: 172 Handle: RePEc:oec:agraaa:172-EN Template-type: ReDIF-Paper 1.0 Author-Name: Grégoire Tallard Author-Name: Marcel Adenäuer Author-Name: Koen Deconinck Author-Name: Gaëlle Gouarin Title: Potential impact of dietary changes on the triple challenge facing food systems: Three stylised scenarios Abstract: A shift towards healthier diets is expected to address the challenge of providing food security and nutrition for a growing global population. This report explores whether such a shift would also have positive effects on the other two challenges food systems face: supporting livelihoods for those working along the food supply chain and contributing to environmental sustainability. The report finds that aligning diets with World Health Organisation guidelines on sugar and fat consumption would have the expected positive effect on nutrition and food security, and would also positively affect environmental sustainability. The effect on livelihoods along the food value chain, however, would overall be negative. The magnitude of the trade-offs and synergies are greater when fat consumption is reduced, as opposed to sugar consumption, because actual consumption levels of fat are further away from WHO recommendations. Classification-JEL: C53; I10; Q01; Q02; Q54 Keywords: Dietary recommendations, Food security, Overweight, Sustainability, Undernourishment Creation-Date: 2022-01-19 Number: 173 Handle: RePEc:oec:agraaa:173-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Workplace-Name: OECD Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Author-Name: Eimear Flynn Author-Workplace-Name: OECD Author-Name: Alastair Sykes Author-Workplace-Name: Scotland’s Rural College Author-Name: Florian Payen Author-Workplace-Name: Scotland’s Rural College Author-Name: Michael MacLeod Author-Workplace-Name: Scotland’s Rural College Title: Soil carbon sequestration by agriculture: Policy options Abstract: Net soil carbon sequestration on agricultural lands could offset 4% of annual global human-induced GHG emissions over the rest of the century and make an important contribution to meeting the targets of the Paris Agreement. To harness this potential of the agricultural sector to positively contribute to the sustainability agenda, a package of policies is needed to enhance global soil carbon stocks. Such a package would include regulations to prevent the loss of soil carbon, knowledge transfer policies to promote “win-win” solutions, and additional incentives delivered via market-based policies. The latter will need to be supported by innovative contracting solutions to address concerns about the non-permanence of carbon stocks and to reduce transaction costs. Classification-JEL: Q1; Q2; Q5; Q18; Q24; Q28; Q54; Q57; Q58 Keywords: Climate change, GHG, Mitigation, Sequestration practices Creation-Date: 2022-01-24 Number: 174 Handle: RePEc:oec:agraaa:174-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan McFadden Author-Workplace-Name: University of Oklahoma Author-Name: Francesca Casalini Author-Workplace-Name: OECD Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Policies to bolster trust in agricultural digitalisation: Issues note Abstract: One important constraint to farmers’ adoption of digital technologies, beyond costs, relevance, user-friendliness, human capital requirements, and perceived technology risks, is farmers’ lack of trust in digital technologies. A number of issues underlie this lack of trust: 1) problems of data privacy, security, and confidence in data sharing; 2) cases of misaligned incentives of sellers and buyers of digital technologies; 3) difficulty in learning how to unwrap “black box” technologies; and 4) lack of standards for comparing and certifying the operation of digital technologies. Governments have several potential options to help bridge these trust gaps. These include encouraging firms to decouple their sales of problem assessment from sales of solutions; strengthening public sector extension services and farmers’ technological learning; facilitating the development of risk-sharing arrangements between technology providers and farmers; and exploring ways to promote the standardisation of evaluation and certification of digital agricultural technologies. Classification-JEL: Q16; D83; L15 Keywords: credence goods, Digital agriculture, learning, risk-sharing, standardisation Creation-Date: 2022-04-13 Number: 175 Handle: RePEc:oec:agraaa:175-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jonathan McFadden Author-Workplace-Name: University of Oklahoma Author-Name: Francesca Casalini Author-Workplace-Name: OECD Author-Name: Terry Griffin Author-Workplace-Name: Kansas State University Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: The digitalisation of agriculture: A literature review and emerging policy issues Abstract: Digitalisation offers the potential to help address the productivity, sustainability and resilience challenges facing agriculture. Evidence on the adoption and impacts of digital agriculture in OECD countries from national surveys and the literature indicates broad use of digital technologies in row crop farms, but less evidence is available on uptake for livestock and speciality crops. Common barriers to adoption include costs (up-front investment and recurring maintenance expenses), relevance and limited use cases, user-friendliness, high operator skill requirements, mistrust of algorithms, and technological risk. National governments have an important role in addressing bottlenecks to adoption, such as by ensuring better information about costs and benefits of various technologies (including intangible benefits such as quality of life improvements); investing in human capital; ensuring appropriate incentives for innovation; serving as knowledge brokers and facilitators of data-sharing to spur inclusive, secure and representative data ecosystems; and promoting competitive markets. Classification-JEL: Q15; Q16; L79; Q12; O33 Keywords: Barriers to adoption, Precision agriculture, Productivity, Risk management, Sustainability Creation-Date: 2022-04-13 Number: 176 Handle: RePEc:oec:agraaa:176-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jean Christophe Bureau Author-Workplace-Name: National Research Institute for Agriculture, Food and Environment Author-Name: Jesús Antón Author-Workplace-Name: OECD Title: Agricultural Total Factor Productivity and the environment: A guide to emerging best practices in measurement Abstract: Increased productivity and sustainability of the agricultural sector are core policy objectives in OECD and non-OECD countries. This Guide provides an overview of the current state of the art in measuring sustainable productivity of the agricultural sector and analysing sources of growth in a reliable and comparable manner across countries in a way useful for policy makers. It draws on the contributions from members of the OECD Network on Agricultural Total Factor Productivity (TFP) and the Environment that brings together relevant experts from academia and national statistical agencies. Its insights will be key for designing policies necessary to meet the triple challenge of feeding a growing world population and providing incomes to food system actors whilst ensuring environmental sustainability.The Guide presents recommendations in two areas. First, on how to improve the traditional calculation of TFP based on market prices inputs and outputs, proposing harmonised methods on capital measurement, land pricing, output aggregation and quality adjustment. Second, on how to account for environmental outcomes, considering a reduction in pollution or emissions as a productivity gain, but the increased use of natural capital as a productivity loss. A main challenge is the estimation of “shadow prices” for non-market inputs and outputs. It is recommended to pursue several complementary avenues: investing in improving TFP methodologies and data; continuing investigating its expansion to include environmental outcomes; and mapping traditional TFP with other indicators of agri-environmental performance. Classification-JEL: O11; O13; O41; O47 Keywords: Agricultural productivity, Economic growth, Environmental sustainability Creation-Date: 2022-05-30 Number: 177 Handle: RePEc:oec:agraaa:177-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Delpeuch Author-Name: Emanuela Migliaccio Author-Name: Will Symes Title: Eliminating government support to illegal, unreported and unregulated fishing Abstract: This report assesses how to stop illegal, unreported and unregulated (IUU) fishing benefitting from government support. Based on a survey of OECD countries and partner economies participating in the work of the OECD Fisheries Committee, it recommends actions that can be undertaken by countries to maximise the chances of excluding individuals and companies with links to IUU fishing from government support, and to minimise the risk that such support benefits IUU fishing ex ante, given the inherent difficulty to take action ex post. Eight specific recommendations are presented. Classification-JEL: Q22; Q27; Q28; H25 Keywords: Fisheries, IUU, Marine resources, Ocean, Subsidy Creation-Date: 2022-06-08 Number: 178 Handle: RePEc:oec:agraaa:178-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Name: Clara Frezal Author-Name: Frederica Maggi Title: Maritime Transportation Costs in the Grains and Oilseeds Sector: Trends, Determinants and Network Analysis Abstract: More than 80% of global trade in grains and oilseeds occurs by maritime transport. This report provides an in-depth analysis of ocean freight rates during 2007-2021, examining their evolution, volatility, determinants, and how they influence port networks. Freight rates accounted on average for 11% of the cost and freight price, but this share ranges between 2% and 43%, demonstrating the potentially large impact of freight rates on consumer prices. Freight rates for grains and oilseeds are generally more volatile than their free-on-board prices. Regression analysis shows that a 10% increase in the distance between two ports is estimated to lead to a 2.5% increase in freight rates. It also demonstrates that freight costs for grains and oilseeds do not obey the iceberg formulation, which implies that they should be modelled as additive (constant costs per unit traded) rather than as multiplicative (iceberg) costs. Classification-JEL: F14; Q17; Q2; R40; D85 Keywords: Additive costs, Freight rates, Iceberg, Ports Creation-Date: 2022-06-15 Number: 179 Handle: RePEc:oec:agraaa:179-EN Template-type: ReDIF-Paper 1.0 Author-Name: Santiago Guerrero Author-Workplace-Name: OECD Author-Name: Ben Henderson Author-Workplace-Name: OECD Author-Name: Hugo Valin Author-Workplace-Name: OECD Author-Name: Charlotte Janssens Author-Workplace-Name: International Institute for Applied Systems Analysis Author-Name: Petr Havlik Author-Workplace-Name: International Institute for Applied Systems Analysis Author-Name: Amanda Palazzo Author-Workplace-Name: International Institute for Applied Systems Analysis Title: The impacts of agricultural trade and support policy reform on climate change adaptation and environmental performance: A model-based analysis Abstract: This study investigates whether agricultural policy reforms could help cushion the impacts of climate change on agriculture by facilitating the relocation of production and international trade. The agricultural sector faces immense challenges in ensuring the provision of food, farm incomes, employment and environmental services in a changing climate. Its ability to meet these challenges depends, in part, on the flexibility with which agricultural production can be relocated in response to agro-ecological and market conditions being reshaped by climate change in a sustainable manner. To better understand these interactions, this study employs a quantitative model to assess the economic and environmental effects of removing market distorting policies under climate change. The results suggest that the policy reforms could reduce the extent to which climate change increases agricultural commodity prices and undernourishment and, in that sense, contribute to global adaptation to climate change. Accompanying policy measures may however be required to prevent potential trade-offs associated with the reforms, including increases in land use emissions. Classification-JEL: C61; F18; Q11; Q17; Q54; O13 Keywords: Adaptive capacity, Agricultural policy, Land use change, Non-technical measures, Producer support, Tariffs, Trade policy, Water scarcity Creation-Date: 2022-06-21 Number: 180 Handle: RePEc:oec:agraaa:180-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emily Gray Author-Name: Darryl Jones Title: Innovation, agricultural productivity and sustainability in Viet Nam Abstract: This report assesses Viet Nam’s agricultural sector through the lens of the OECD Agro-food Productivity-Sustainability-Resilience (PSR) Policy Framework. Agriculture has played an important role in Viet Nam’s remarkable economic growth over the past thirty years. In the 1990s, government policies contributed to strong agricultural productivity growth, but this has since fallen. OECD Agri-Environmental indicators also reveal weaknesses in the environmental footprint of growth, notably with respect to nutrient balances, as a result of the excessive use of agro-chemicals and poor animal waste management practices. The agricultural sector faces significant resilience challenges from climate change impacts, including sea level rises and more frequent and severe storm events. Although the level of agricultural support provided to farmers is relatively low, policies such as land use regulations are skewed in favour of rice production, thereby maintaining a production structure dominated by small part-time household farms that limit innovation. Viet Nam’s support for general services for agriculture (GSSE) was equivalent to 2.5% of agricultural value added in 2018-20, well below the OECD average. Shifting the focus of support towards research, development, and innovation partnerships with the private sector will contribute to improving the agri-environmental performance of agriculture in Viet Nam. This should ideally be accompanied by a reform of land use regulations. Classification-JEL: O13; O3; Q1; Q18; Q24 Keywords: Agricultural policies, Agricultural productivity, Environmental sustainability Creation-Date: 2022-06-22 Number: 181 Handle: RePEc:oec:agraaa:181-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clara Frezal Author-Name: Claude Nenert Author-Name: Hubertus Gay Title: Meat protein alternatives: Opportunities and challenges for food systems’ transformation Abstract: Meat alternatives are attracting private investment and interest from the research community as possible solutions to meet the growing global demand for proteins in a sustainable, ethical, and healthy way. Using a food systems lens, this report investigates the opportunities and challenges associated with three meat alternatives: plant-based, insects and cultured meat. The analysis is based primarily on a literature review, which is complemented by an illustrative scenario using the OECD-FAO Aglink-Cosimo model. Results from the scenario analysis suggest that a shift from meat to meat alternatives in high and upper middle-income countries could result in a decline in global agricultural land use and GHG emissions from the agriculture, forestry, and other land use sector. Lower demand for meats in these countries would also lead to a decrease in international prices for meats, soybean and cereals, which would benefit consumers but place pressure on farmer incomes. Classification-JEL: O13; Q19; Q55; L66 Keywords: Cultured meat, Economic scenario, Insects, Plant-based Creation-Date: 2022-09-06 Number: 182 Handle: RePEc:oec:agraaa:182-EN Template-type: ReDIF-Paper 1.0 Author-Name: Céline Giner Author-Name: Olivia Placzek Title: Food insecurity and food assistance programmes across OECD countries: Overcoming evidence gaps Abstract: Food systems are expected to ensure food security and nutrition for a growing population. While food insecurity is more acute in developing countries, OECD countries are also affected. The current high-level of food prices could push more people into poverty and hunger. Governments have a role to play in easing impacts on households. They run or support food assistance programmes, such as school meal programmes, food voucher programmes and food banks’ operations. Based on OECD countries’ experiences, this paper provides a roadmap to identify and overcome evidence gaps on food insecurity and food assistance programmes to allow for a better targeting and improved efficiency of such programmes. This paper highlights the need for a coordinated effort by OECD countries to collect regular and comparable information. Classification-JEL: C80; H53; Q18; Q19; I38 Keywords: COVID, Food banks, Food security measurement, Food systems, Food vouchers, School meal programmes Creation-Date: 2022-09-22 Number: 183 Handle: RePEc:oec:agraaa:183-EN Template-type: ReDIF-Paper 1.0 Author-Name: Céline Giner Author-Name: May Hobeika Author-Name: Chiara Fischetti Title: Gender and food systems: Overcoming evidence gaps Abstract: Fostering gender inclusion can have positive impacts on the food systems' triple challenge of ensuring food security and nutrition for a growing population, supporting the livelihoods of millions of people working in the food supply chain, and doing so in an environmentally sustainable way. Yet these positive synergies are often invisible as sex-disaggregated information is not collected. This report calls for the development of better evidence on gender and food systems as a necessary first step in the path towards gender equality. Based on OECD countries’ experiences, it provides a roadmap to identify and overcome evidence gaps on gender aspects and policies that address gender inequality in food systems with the aim of advancing women’s contribution to food systems. Classification-JEL: C80; J16; K38; L66; Q18 Keywords: Food systems, Gender equality, Gender impact analysis, Women consumers, Women entrepreneurs, Women workers Creation-Date: 2022-09-22 Number: 184 Handle: RePEc:oec:agraaa:184-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: Lucinda Toyama Title: Environmental impacts along food supply chains: Methods, findings, and evidence gaps Abstract: Food systems exert major pressures on the environment. This paper reviews what is known and not known about environmental impacts along food supply chains, looking at the contribution of different stages of the supply chain, the impact of different products, heterogeneity among producers, and the role of international trade. This review shows that most environmental impacts in food supply chains occur through land use change or at the stage of agricultural production. Livestock (especially ruminant livestock) has a higher footprint than plant-based food. However, there is also important heterogeneity among producers, even within the same region. A significant share of total environmental impacts is "embodied" in international trade, although considerably less than half. In terms of evidence gaps, some impacts (e.g. biodiversity, soil carbon) have been less studied, and there are geographic and product blind spots. Moreover, existing evidence is not sufficiently granular. While important evidence gaps thus exist, the overall picture that emerges is one of a rapidly growing evidence base, which can inform innovative supply chain initiatives to reduce impacts. Classification-JEL: Q17; Q27; Q51; Q56; Q37 Keywords: Agricultural trade, Global value chains, Input-output analysis, Life Cycle Assessment, Sustainability Creation-Date: 2022-09-27 Number: 185 Handle: RePEc:oec:agraaa:185-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: May Hobeika Title: Improving environmental outcomes along food supply chains: A review of initiatives and their effectiveness Abstract: This paper reviews initiatives which take a “supply chain lens” to improving environmental outcomes of food systems. Some focus on due diligence, or ask firms to disclose impacts of their supply chain. Others benchmark firms according to supply chain performance. Firms also increasingly make corporate pledges covering their supply chain. In addition to traditional voluntary sustainability standards and labels, new labels are emerging which communicate actual environmental impacts along the life cycle. Governments can also provide financial incentives linked to such impacts. This review demonstrates the strong growth and diversity of initiatives, bolstered by more clearly defined societal expectations and reporting standards, and leading to a greater availability of data and evidence and more universal reporting, reducing the scope for greenwashing. Despite their great promise, there remain coverage gaps. Evidence on effectiveness also remains relatively scarce, although there is a clear increase in the number of empirical studies. Classification-JEL: Q17; Q27; Q37; Q51; Q56; M14 Keywords: Due diligence, Life cycle assessment, Supply chain initiatives, Sustainability Creation-Date: 2022-09-27 Number: 186 Handle: RePEc:oec:agraaa:186-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dalila Cervantes-Godoy Title: Aligning agricultural and rural development policies in the context of structural change Abstract: The economic importance and level of employment in agriculture are declining in many rural regions. There are many reasons for this, including demographic changes, deeper urban-rural linkages, technological advances, growing urbanisation, and land use change. To successfully accompany this structural change, agricultural and rural development policies must be coherent. This requires an improved understanding of areas of complementarity and trade-offs between these policies to ensure better integration and to avoid overlaps. Areas of complementarity include rural policies with transferable benefits for agriculture, such as investments in rural infrastructure, digital connectivity, health care, and other public services. With respect to agricultural policies, these complementarities exist with policies that have wider rural benefits, such as investments in agricultural innovation systems, improvements in extension services, and land and water management policies. As the transition towards a diversified low carbon rural economy continues, additional synergies could be developed between agriculture and rural policies. Classification-JEL: Q15; Q18; R11; R50; Q16 Keywords: Agricultural policy, Policy complementarity, Rural policy Creation-Date: 2022-10-24 Number: 187 Handle: RePEc:oec:agraaa:187-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Title: International effects of fisheries support policies Abstract: This paper examines how fisheries policies affect domestic versus foreign fishing efforts. In line with previous work, the paper finds that policies directly affecting fishing costs (e.g. fuel or input subsidies) are more likely to lead to overfishing than those based on income or fixed assets such as vessels. This new work, based on a disaggregated global model where regional fishers operate interdependently, shows that fuel tax concessions (FTCs) tend to encourage more fishing effort in domestic fisheries and less in foreign ones because the fisher must take on fuel at a domestic port to take advantage of the policy. Classification-JEL: H23; H53; Q22; Q57; Q28 Keywords: Fisheries policy, Fisheries subsidies, Fisheries trade, Fishing capacity, Overfishing Creation-Date: 2022-10-27 Number: 188 Handle: RePEc:oec:agraaa:188-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michael Ryan Title: Labour and skills shortages in the agro-food sector Abstract: Labour and skills shortages are a major concern in the agro-food sector across OECD countries. This challenge is compounded by the relatively small, and declining, contribution of agriculture to GDP, and the negative public perception of the sector with relatively low wages and limited career prospects. This paper reviews policies that have the potential to address labour and skills shortages in the agro-food sector including labour market, education and training, social protection policies, immigration, as well as agricultural specific policies. Many of the policy levers used to address the agro-food labour challenge lie outside the sector and involve finding the right policy mix that tends to be country specific. Furthermore, some issues can be addressed by closer public and private collaboration such as improving working conditions, increasing investment in agricultural education and training of young entrants to the sector. Greater attention also needs to be given to improving the image of agriculture as a career choice, promoting a more diverse workforce, improving the alignment of skills to the needs of the sector, promoting continuous learning, and strengthening national advisory services. Classification-JEL: J21; J24; Q10; Q18 Keywords: Agricultural policy, Agriculture Creation-Date: 2023-01-17 Number: 189 Handle: RePEc:oec:agraaa:189-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michael Ryan Author-Name: Ellie Avery Author-Name: Sarah Kahn Title: Electronic sanitary certificates for trade in animal products: Opportunities and Challenges Abstract: Electronic exchange of sanitary and phytosanitary certificates can facilitate trade in animal and plant products. The electronic exchange of certificates can benefit both exporting and importing countries through enhanced efficiency gains, improved transparency, and traceability, as well as improved risk management along the food chain. However, the policy levers associated with e-sanitary certification systems are complex and include trade policies, as well as regulatory policies, investment policies, and public health and animal health policies. Countries face substantial challenges in the adoption of electronic sanitary certification systems including the costs associated with building the infrastructure, providing training, and updating existing regulatory systems. This paper reviews the uptake of e-sanitary certification systems and discusses the potential benefits and costs of adoption of these systems. Effective co-operation and collaboration between the public and private sectors are critical to the adoption and maintenance of sustainable e-sanitary certification systems. Classification-JEL: F13; F66; J16; J21; J24; Q10; Q18 Keywords: Agriculture, Digitalisation, Food standards, SPS, Trade facilitation Creation-Date: 2023-02-02 Number: 190 Handle: RePEc:oec:agraaa:190-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alonso González Marentis Author-Name: Annelies Deuss Title: Decoding agricultural tariffs: A practical guide on databases with preferential tariffs in agriculture Abstract: Regional Trade Agreements (RTAs) have become the major route for countries to reduce trade barriers and open new markets. To fully assess the current state of market opening for agricultural products and examine the potential impacts of RTAs, access to up-to-date and consistent information on preferential tariffs is crucial. There are multiple databases that collect information on preferential tariffs; however, it is not always easy to identify how these databases differ in terms of their data collection, treatment and representation, nor which database is the most appropriate for a specific type of analysis. This practical guide aims to help trade negotiators, policy makers, researchers, and private sector actors to identify which international or national database to use for their analysis of preferential tariffs on agricultural products. Classification-JEL: F13; F53; Q17 Keywords: International organisations, Preferential market access, Regional Trade Agreements, Trade liberalisation, Trade policy Creation-Date: 2023-02-02 Number: 191 Handle: RePEc:oec:agraaa:191-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Name: Edith Laget Title: Sanitary and phytosanitary approval procedures: Key issues, their impact on trade, and ways to address them Abstract: Approval procedures are critical to sanitary and phytosanitary (SPS) systems as they uphold countries’ commitments to facilitate safe trade. However, they can create significant costs and act as non-tariff barriers if not properly administered. This report examines the costs and opportunities that are associated with seven of the most pressing issues related to the administration of approval procedures. The analysis reveals that countries have increasingly raised specific trade concerns (STCs) to the WTO about issues related to approval procedures. Furthermore, gravity analysis demonstrates that trading partners dealing with STCs related to approval procedures trade 26% less on average than those not dealing with any STC. An OECD survey specifically designed to evaluate how issues related to approval procedures can be addressed indicates that multiple solutions exist to enhance efficiencies in agro-food trade, such as digitalizing SPS systems, relying on international standards or simplifying SPS measures. Classification-JEL: F13; F53; Q17; Q18 Keywords: Agriculture and food standards, Digitalisation, Gravity estimation, Non-tariff barriers, Safe trade, Specific Trade Concerns (STCs) Creation-Date: 2023-02-14 Number: 192 Handle: RePEc:oec:agraaa:192-EN Template-type: ReDIF-Paper 1.0 Author-Name: Guillaume Gruère Author-Name: Emanuela Migliaccio Author-Name: Ethan Ellis Author-Name: Wataru Kodama Author-Name: Lapo Roffredi Author-Name: Veronika Vanisova Title: Pursuing higher environmental goals for agriculture in an interconnected world: Climate change and pesticides Abstract: Governments in many countries are pursuing higher environmental goals for agriculture. However, in an interconnected world, the unilateral adoption of environmental policies for agriculture can reduce the producers’ competitiveness and induce pollution leakage. This report analyses these challenges and discusses policy solutions, focusing on two examples: climate change mitigation policies and policies limiting the environmental impacts of pesticides. The extent of competitiveness and leakage effects is found to depend on market conditions, differences in pollution intensity, and the type of environmental policy adopted. Two policy routes are identified to improve agriculture’s environmental performance while maintaining the benefits of global markets. The first route relies on “direct” environmental policies, such as market-based instruments or regulations, which are rapidly effective in limiting environmental impacts but may require additional complementary policies to limit their potential competitiveness and leakage impacts. The second route involves alternative policies acting on agricultural supply, demand, or through private sector engagement, which limit competitiveness and leakage impacts but may require time to be environmentally effective. Classification-JEL: Q17; Q18; Q58 Keywords: Agriculture policy, Climate change, Competitiveness, Environmental policy, Pesticides, Pollution leakage, Trade policy Creation-Date: 2023-04-11 Number: 193 Handle: RePEc:oec:agraaa:193-EN Template-type: ReDIF-Paper 1.0 Author-Name: Roger Martini Title: Towards a taxonomy of agri-environmental regulations: A literature review Abstract: Regulations are an important part of the policy toolkit governments can use to address climate and environmental objectives in agriculture. This report reviews existing literature on the characteristics and assessment of environmental regulations in agriculture. It finds that direct evidence on the outcomes and cost-effectiveness of agri-environmental regulations is generally limited and situation-specific. However, a taxonomy that classifies and organises information on regulations can give a sense of their number, the environmental domains covered, and the scope and depth of their application. This is potentially useful with respect to measuring progress on international commitments for action on climate change mitigation and other analysis. Classification-JEL: K23; Q18; Q28; Q58 Keywords: Agriculture, Climate change, Environment Creation-Date: 2023-04-12 Number: 194 Handle: RePEc:oec:agraaa:194-EN Template-type: ReDIF-Paper 1.0 Author-Name: Johannes Sauer Author-Name: Jesús Antón Title: Characterising farming resilience capacities: An example of crop farms in the United Kingdom Abstract: Improving the resilience of farmers against external shocks is a priority for policy makers. This paper measures the resilience of a sample of farmers in the United Kingdom to assess the impact of the 2011-12 drought on their productivity and income. The analysis allows for the distinction of four resilience capacities: to prepare; to absorb the immediate impact of the shock; to adapt farming practices to a new environment; and to transform the business model, and improve productivity and income in the longer term. Results show that a single farm rarely performs strongly across these four capacities, and that those farms that best absorb the impact of the drought, perform poorly in transforming their business after the shock. While size and diversification improve absorption and adaptation, innovation is a key driver of long-term resilience to keep the pace of productivity gains. In the past, policies on agricultural risk management focused on the absorption capacity of farms and on stabilising income. Forward-looking resilience policies today need to prioritise other capacities, in particular preparedness, adaptation and transformation. Classification-JEL: D24; O31; O33; Q12; Q18 Keywords: Adaptation, Agricultural productivity, Drought, Risk management, Transformation Creation-Date: 2023-05-15 Number: 195 Handle: RePEc:oec:agraaa:195-EN Template-type: ReDIF-Paper 1.0 Author-Name: Annelies Deuss Author-Name: Stephanie Honey Title: Costs, benefits and effectiveness of remote audits for international food safety Abstract: Remote audits enabled international food trade to continue despite the severe COVID-19 pandemic disruptions, but what is their role in the future? Based on case studies and an OECD survey, this report examines the cost, benefits and effectiveness of remote audits. The analysis reveals that key benefits include lower travel expenses, reduced emissions footprints, more flexible use of time, and opportunities to train and involve more staff. There were nevertheless major drawbacks, including limitations to gather audit evidence, a heavy additional burden of preparation time, internet connectivity issues, and the lack of interpersonal engagement. In general, most stakeholders consider remote audits to be less effective than on-site audits, particularly for those of regulatory systems or for the physical auditing of establishments. This report highlights the need to harmonise the terminology in this area of work, and to develop practical guidelines on how and when to conduct remote audits. Classification-JEL: L15; M42; Q17; Q18; M48 Keywords: Advantages, Certification, Digitalisation, Disadvantages, Information and Communications Technologies, Inspection Creation-Date: 2023-06-14 Number: 196 Handle: RePEc:oec:agraaa:196-EN Template-type: ReDIF-Paper 1.0 Author-Name: Masayasu Asai Author-Name: Janet Dwyer Author-Name: Jesús Antón Author-Name: Enrique Garcilazo Title: Fostering agricultural and rural policy dialogue Abstract: Agricultural and rural policies can benefit from potential synergies when designed correctly. Broadly speaking, agricultural policies target farms and food production, while rural policies focus on ensuring the development of a territory and the well-being of the rural population. Despite these differences, both policies are often applied within the same territory and share a growing interest in improving environmental sustainability and adapting to climate change, as well as improving inclusiveness, food security and nutrition, and increasing productivity and innovation. This paper calls for a constructive dialogue on policies and processes to enhance the synergies and coherence in policy advice, and helping to resolve possible trade-offs between agricultural and rural policies. There are many opportunities to build on potential synergies, including on the role of agriculture in structural change in rural areas, on diversifying farm and rural economies, and on ensuring environmental sustainability. Classification-JEL: H7; O2; O3; Q18; R5 Keywords: Economic sustainability, Environmental sustainability, Food systems, Place-based approach, Resilience, Rural development, Social sustainability Creation-Date: 2023-06-28 Number: 197 Handle: RePEc:oec:agraaa:197-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marcel Adenäuer Author-Name: Clara Frezal Author-Name: Thomas Chatzopoulos Title: Mitigating the impact of extreme weather events on agricultural markets through trade Abstract: Extreme weather events can disrupt agricultural markets, but agricultural trade can help address subsequent food security concerns. Using the Aglink-Cosimo model, this stochastic scenario analysis sheds light on the complex relationships between trade and food security in an environment where extreme weather events create uncertainty. The analysis suggests that trade integration makes countries less vulnerable to negative yield shocks by mitigating the risk of extreme food prices and by stabilising food availability. Although no model can capture the complex process and consequences of opening this sector to trade, it is clear that trade integration needs to be part of a wider coherent policy package to improve food security. Classification-JEL: Q17; Q18; Q54; Q56; C54 Keywords: Climate change, Food security, Partial equilibrium modelling, Resilience, Trade integration Creation-Date: 2023-06-30 Number: 198 Handle: RePEc:oec:agraaa:198-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: Céline Giner Title: Overcoming evidence gaps on food systems: Synthesis Abstract: There is a growing awareness of the need to transform food systems. Yet successful actions require sound evidence: on the extent, characteristics, and drivers of issues; on the effectiveness of different policy instruments, and their synergies and trade-offs; on how policy proposals would affect stakeholders; and on citizens’ values and preferences. There are considerable evidence gaps on many of these aspects. This paper presents the main findings from the OECD project “Overcoming Evidence Gaps on Food Systems,” which aimed to identify different types of evidence gaps, as well as pragmatic approaches to overcome these. The project explored this question through three “deep dives” on food insecurity and food assistance programmes across OECD countries, gender and food systems, and environmental impacts along food supply chains. Overall, there is a strong case for greater investment in overcoming evidence gaps for food systems. Classification-JEL: C80; Q01; Q10 Creation-Date: 2023-07-06 Number: 199 Handle: RePEc:oec:agraaa:199-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: May Hobeika Title: Understanding the impact of consumer-oriented assurance schemes: A review of voluntary standards and labels for the environmental sustainability of agri-food products Abstract: Assurance schemes (certifications and labels) are widespread in the agri-food sector. This paper reviews the landscape of existing schemes, and the evidence on whether labels change consumer behaviour, and whether assurance schemes achieve positive change on the farm. The impact of existing labels on shopping behaviours appears limited: even for well-established schemes, market shares remain low, as factors such as taste, health, or price appear to dominate consumer decisions. Regarding farm-level effects, not all crops, standards, and geographies have been equally well studied, and many studies find no effect; but when an effect is found, it is usually positive. The paper identifies actions to improve the effectiveness and inclusiveness of existing and new assurance schemes, and also highlights the new trend of labels which communicate environmental impacts, rather than conformity with process or production requirements. Classification-JEL: D12; D91; M3; Q50; L15 Keywords: Certification, Credence goods, Food systems, Hypothetical bias, Voluntary sustainability standards Creation-Date: 2023-07-07 Number: 200 Handle: RePEc:oec:agraaa:200-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ulrike Bayr Author-Workplace-Name: Norwegian Institute of Bioeconomy Research Author-Name: Kelly Cobourn Author-Workplace-Name: OECD Author-Name: Petra Dieker Author-Workplace-Name: Thünen Institute Author-Name: Wendy J. Fjellstad Author-Workplace-Name: Norwegian Institute of Bioeconomy Research Author-Name: Felix Herzog Author-Workplace-Name: Agroscope Author-Name: Jussi Lankoski Author-Workplace-Name: OECD Title: Guidelines for the development of an OECD farmland habitat biodiversity indicator Abstract: With half of the world’s habitable land being used for agriculture, monitoring the biodiversity on agricultural land is essential for meeting the objectives of the United Nations Convention on Biological Diversity (CBD). This paper seeks to advance the monitoring of farmland biodiversity in OECD countries by investigating current national initiatives and proposing guidelines for the development of an indicator based on habitat. The proposed approach provides a flexible and pragmatic framework to harmonise reporting from national programmes while accommodating cross-country diversity in contextual factors, including farming systems, climate, biophysical conditions and species pools. To facilitate implementation in the near term, the indicator includes a three-tiered approach to reporting based on data availability, which accommodates countries with limited data resources as well as those that currently have monitoring programmes in place. Classification-JEL: Q15; Q18; Q24; Q57 Keywords: Agri-environmental indicator, Agriculture, Ecosystem services, Land cover Creation-Date: 2023-07-11 Number: 201 Handle: RePEc:oec:agraaa:201-EN Template-type: ReDIF-Paper 1.0 Author-Name: Kelly Cobourn Title: Climate change adaptation policies to foster resilience in agriculture: Analysis and stocktake based on UNFCCC reporting documents Abstract: National climate change adaptation programmes can strengthen agriculture’s resilience to adverse climatic events by investing in absorptive capacity to mitigate the impact of a shock in the short run, adaptive capacity to effect incremental changes in the medium run, and transformative capacity to create fundamentally new agricultural production systems in the long run. Using UNFCCC reporting documents, this analysis takes stock of agricultural climate change adaptation programmes in OECD countries and evaluates their contribution to developing resilience. Significant investments have been undertaken in the creation of decision support tools, the management of soil and water resources, and cultivar selection and breeding to address key agricultural vulnerabilities, namely drought, flooding and declining crop yields. Adaptation programmes developed to date most heavily emphasise adaptive capacity to address sustained and growing climate risks. Actions that contribute to transformative capacity are beginning to emerge, but lag behind medium-run measures. Classification-JEL: Q18; Q54; Q58 Keywords: Agricultural production, Climate risk, Content analysis, Transformative capacity Creation-Date: 2023-07-11 Number: 202 Handle: RePEc:oec:agraaa:202-EN Template-type: ReDIF-Paper 1.0 Author-Name: Céline Giner Author-Name: Daniela Rodriguez Author-Name: Armelle Elasri Title: Developing food labels for improved health outcomes: Insights into simplified nutrition labelling policies Abstract: Simplified nutrition labelling policies provide supplementary nutritional information in an easy-to-understand label displayed on food products at the front-of-pack. Forty-four countries have introduced these types of labelling schemes with a view to promoting positive public health outcomes. Preliminary insights on the impact of these schemes show that they can influence reformulation efforts by the food industry as well as consumers’ purchasing decisions. The schemes differ, however, across several dimensions including implementation methods (voluntary or mandatory), the extent to which they provide consumers with nutrient information versus nutrition advice, the conveyed message, targeted products, design and appearance, and accompanying national policy mix. Their rapid proliferation across the world has led to a diversity of schemes which can have implications for private sector decisions and trade. Mechanisms to improve the availability of information and reduce administrative hurdles should be considered in order to improve the integration and use of such schemes, and to facilitate trade. Improving consistency across the nutrient criteria that underpin the different schemes could be considered when reviews are undertaken, especially at the regional level. Classification-JEL: I18; L66; M38; Q18 Keywords: Food systems, Front-of-pack, Impact assessment, Policy processes Creation-Date: 2023-08-30 Number: 203 Handle: RePEc:oec:agraaa:203-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ben Henderson Author-Name: Jussi Lankoski Title: Integrated approaches for agricultural sustainability and productivity assessments Abstract: Increasing agricultural productivity growth sustainably can help to address the triple challenge of providing sufficient affordable and nutritious food for a growing global population, while supporting sector livelihoods and improving environmental outcomes. However, challenges remain in measuring environmentally sustainable productivity growth. This study uses alternative approaches to address these challenges and provides answers to the following questions: i) has Total Factor Productivity (TFP) growth coincided with improved environmental outcomes?; and ii) has the agricultural productivity and environmental performance of countries improved over time? While there is compelling evidence that TFP growth has helped countries to expand agricultural output and reduce greenhouse gas emissions per unit of output, these emissions increased in absolute terms for about half of the OECD countries assessed and nitrogen surpluses increased for about one-third. While these environmental impacts would have been larger if output had expanded in the absence of productivity growth, there is room to steer innovation in the sector in a more environmentally sustainable direction. Classification-JEL: D24; Q01; Q10; Q56 Keywords: agri-environmental indicators, greenhouse gas emissions, nutrient balances, Total factor productivity Creation-Date: 2023-09-22 Number: 204 Handle: RePEc:oec:agraaa:204-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen Deconinck Author-Name: Ben Henderson Author-Name: Daniel Gregg Author-Name: Daniel Hill Title: Towards resilient food systems: Implications of supply chain disruptions and policy responses Abstract: This paper explores food supply chain resilience and its connection to resilience of food systems more broadly. In terms of availability and affordability, food supply chains have been resilient to a wide range of shocks. Trade plays an important risk pooling role in allowing countries to draw on international markets in the face of domestic shocks. Some domestic policies have helped absorb supply chain shocks, for example support to low-income households or the removal of supply chain bottlenecks. Other measures like export restrictions exacerbate instability. The concept of food systems resilience goes further than availability and affordability of food. It includes broader objectives (like livelihoods and environmental sustainability), and must also anticipate a broader range of shocks, as well as the pressures generated by food systems themselves on the environment. Policy makers should therefore take a more complete systems-wide view of resilience. Classification-JEL: F14; Q17; Q13 Keywords: blind spots, climate change, food security, Food supply chains, trade Creation-Date: 2023-09-22 Number: 205 Handle: RePEc:oec:agraaa:205-EN Template-type: ReDIF-Paper 1.0 Author-Name: Hugo Valin Author-Name: Ben Henderson Author-Name: Jussi Lankoski Title: Reorienting budgetary support to agriculture for climate change mitigation: A modelling analysis Abstract: Reforming agricultural support is increasingly considered a viable means to enhance agriculture’s contribution to climate change mitigation, while fulfilling broader food systems policy objectives related to food security and livelihoods. This study uses a new computable general equilibrium model to investigate a set of global policy reform scenarios that reorientate governments’ budgetary transfers to agriculture to reduce greenhouse gas emissions. The results suggest that removing budgetary support globally would reduce agricultural emissions by 2.1% with potential negative effects on food supply. Reorienting existing support, instead, could have significantly stronger effects: decoupling payments from production and tying these to suitable agri-environmental practices could raise emission reduction to over 4% without harming food supply. Targeted investments in productivity and abatement technologies could bring additional emission savings in the long term with co-benefits for food security. Overall, combining green decoupling and investment policies in OECD countries would reduce global agricultural emissions by 5% – or by 11% if extended to other regions – while balancing outcomes across the three dimensions of the food systems’ triple challenge. Classification-JEL: C68; Q11; Q18; Q54 Keywords: Agricultural policy, Computable general equilibrium, Domestic support, Greenhouse gas emissions Creation-Date: 2023-12-06 Number: 206 Handle: RePEc:oec:agraaa:206-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marcel Adenäuer Author-Name: Edith Laget Author-Name: Merritt Cluff Title: Fertile Futures: Scenario Analysis on the Interconnected Dynamics of Fertiliser and Agricultural Markets Abstract: Fertilisers are crucial components of food systems, with impacts beyond agricultural markets. This study utilises the OECD-FAO Aglink-Cosimo model to examine the intricate interplay between fertiliser markets, policies, and their repercussions on agricultural markets, food security, and environmental sustainability over the medium term. Two distinct scenario analyses reveal significant insights. The first scenario shows that while short-term disruptions in fertiliser supply can be mitigated by existing stocks, prolonged deficits will increase global food prices by up to 6%, posing long-term threats to agriculture. In the second scenario, the removal of fertiliser subsidies in India leads to reduced domestic use, resulting in decreased agricultural production and exports coupled with increased imports. Although this will cause a modest 0.8% increase in global food prices, it will substantially cut agricultural greenhouse gas emissions by 7 million tonnes of CO2 equivalent, highlighting the pivotal role of domestic policies in attaining global environmental sustainability goals. Classification-JEL: C54; Q11; Q17; Q18; Q56 Keywords: Agricultural support, Food security, Greenhouse Gas (GHG), Partial equilibrium modelling Creation-Date: 2024-04-24 Number: 207 Handle: RePEc:oec:agraaa:207-EN Template-type: ReDIF-Paper 1.0 Author-Name: Darryl Jones Author-Name: Annelies Deuss Title: Understanding the resilience of fertiliser markets to shocks: An overview of fertiliser policies Abstract: In the wake of significant price increases in 2021 and 2022, countries introduced new or revised their fertiliser policies, further complicating the policy landscape in a highly concentrated market susceptible to supply disruptions. This report takes stock of the variety of policies in place and develops a framework for their classification and analysis. Key insights include the evolution and composition of farmer support estimates for mineral fertiliser use, the generally low or zero import tariffs reflecting high import dependence, and the non-transparent and frequently changing export restrictions imposed by major exporters. The analysis also shows a clear shift in policies from supporting mineral fertilisers to reducing their use or supporting organic fertiliser production and use. Yet, despite the potential of organic fertilisers, expanding their use and development will require substantial investment, changes in farm management, and policy adjustments. Keywords: Agricultural support, Export restrictions, Market concentration, Organic fertiliser, Policy framework Creation-Date: 2024-06-27 Number: 208 Handle: RePEc:oec:agraaa:208-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mercedes Campi Author-Name: Masayasu Asai Author-Name: Jonathan McFadden Author-Name: Emilio Pindado Author-Name: Alicia Rosburg Title: The evolving profile of new entrants in agriculture and the role of digital technologies Abstract: New entrants into agriculture are critical for the transformation of food systems. New entrants in OECD countries are younger, have higher levels of education and entrepreneurial skills, and are more likely to adopt new technologies than those already working in the sector. Yet, negative perceptions of farming, limited access to capital and land, lower access to services and regulatory complexities can all deter the entry to the sector. Digital technologies can make agriculture more attractive by reducing arduous tasks and health risks, enhancing working conditions, and supporting on-farm income diversification. Foresight analysis of macro trends and challenges to a digitalised, sustainable and inclusive future can be a useful tool to help anticipate farmer skills needs and transform mindsets. Governments can facilitate new entrants in agriculture, including by investing in human capital, improving digital infrastructure services, promoting innovation systems and removing barriers to entry. Classification-JEL: O13; Q12; Q15; Q16; O33 Keywords: Agricultural entrepreneurs, Agricultural innovation, Barriers to entry, Generational renewal Creation-Date: 2024-08-22 Number: 209 Handle: RePEc:oec:agraaa:209-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Export restrictions on staple crops since 2007: An overview based on the OECD database on export restrictions on staple crops Abstract: The OECD database on export restrictions on staple crops is an integral part of the Agricultural Market Information System (AMIS) initiative. Data collected between January 2007 to April 2024 show an increased use of export restrictions during the global food price crisis of 2007-08, the COVID-19 pandemic, and following Russia’s full-scale invasion of Ukraine, with the first period witnessing a significantly higher use of export restrictions than the two subsequent crises. During the first two periods, export taxes prevailed, while prohibitions have been more prominent during the war in Ukraine. The analysis shows that the type of export restriction most commonly used varied by commodity. Maize experienced predominantly export taxes and prohibitions, while minimum export prices and quotas were frequently used for rice. Soybeans were primarily targeted by export taxes, whereas a mix of export quotas and taxes were used for wheat. Only a small proportion of export restrictions lasted less than a month. Classification-JEL: F13; Q17; Q2; Q18 Keywords: Agricultural policy, Agricultural trade, Export bans, Food trade, Grains Creation-Date: 2024-09-04 Number: 210 Handle: RePEc:oec:agraaa:210-EN Template-type: ReDIF-Paper 1.0 Author-Name: Johannes Sauer Author-Name: Philipp Mennig Author-Name: Will Chancellor Author-Name: Jesús Antón Title: Characterising farming resilience capacities in the face of drought and animal diseases: Findings from Australia, Estonia and France Abstract: The resilience of farms in a world of increasing climate uncertainties is a growing policy concern on a global scale. Resilience means finding a balance between ensuring adequate preparation to confront shocks, the ability to absorb its immediate impact, and, as part of the recovery phase, adapting and transforming farm practices to a new environment. A dynamic framework developed by OECD to measure these resilience capacities is applied to three case studies: crop farms affected by drought in Australia, and livestock farms impacted by disease outbreaks in France and Estonia. It was found that most farms performed well in only two of the four resilience capacities. Productivity, investment, and technical change are found to be key drivers of most resilience capacities in Australia, while in Estonia marketing contracts facilitated the successful adaptation and transformation of pig farms during the recovery phase. Future research should focus on finding how to better balance the four resilience capacities, prioritising the analysis of policy drivers. Classification-JEL: Q1; Q12; Q18; Q5; Q54 Keywords: Agriculture, Climate adaptation, Livestock diseases, Transformation Creation-Date: 2024-10-03 Number: 211 Handle: RePEc:oec:agraaa:211-EN Template-type: ReDIF-Paper 1.0 Author-Name: Masayasu Asai Author-Name: Jesús Antón Title: Social issues in agriculture in rural areas Abstract: Ensuring the well-being of farmers, their families, farmworkers, and that of their communities is high on the agenda of governments and policy makers in OECD countries. The quality of agricultural jobs (e.g. working conditions) and quality of life aspects such as environmental quality, health, depopulation of rural areas, isolation, crime, discrimination, and access to knowledge together determine the well-being of those active in the agricultural sector. Relevant policy design has tended to be hampered by serious data gaps. By focusing on different dimensions of well-being, this paper proposes a framework for social issues in agriculture to identify cross-cutting challenges. Seven policy examples, covering diverse social issues such as mental health, developing social connections in isolated rural areas, and inclusiveness of Indigenous Peoples and those with disabilities, confirm the need to look beyond traditional sectoral policies and to address social issues from a broader policy perspective. Only a multipronged approach can successfully remove the barriers that hinder opportunities for all farmers and their communities. Classification-JEL: H7; I13; J81; Q13; Q18; R2 Keywords: Data gaps, Inclusiveness, Rural development, Social sustainability, Well-being Creation-Date: 2024-10-09 Number: 212 Handle: RePEc:oec:agraaa:212-EN Template-type: ReDIF-Paper 1.0 Author-Name: Kelly Cobourn Author-Name: Christopher O'Donnell Author-Name: Jesús Antón Author-Name: Ben Henderson Title: An Index Theory Based Approach to Measuring the Environmentally Sustainable Productivity Performance of Agriculture Abstract: This paper proposes an analytical framework to calculate an environmentally sustainable productivity index (ESPI) to address the multiple challenges faced at present by food systems. Using this framework, an empirical analysis covering 28 countries (anonymised) over three decades examines sustainable productivity performance including three environmental externalities: greenhouse gas emissions, and nitrogen and phosphorus surpluses. The results illustrate how the framework could be used to identify trends in environmentally sustainable productivity within and across countries. While this framework is flexible and can accommodate multiple environmental variables, its application requires appropriate and comparable data on agriculture production and related environmental performance, selecting methods to measure and aggregate groups of outputs and inputs into the productivity index, and choosing a weight for environmental externalities relative to commodity outputs. Sensitivity analyses, as well as comparisons with other approaches to measure sustainable productivity can be undertaken using this framework to ensure the robustness of the measurement. By supporting cross-section comparisons, the ESPI also has the potential to be used in statistical analysis to identify the economic and policy drivers of sustainable productivity performance. Classification-JEL: C43; D24; O44; Q18 Keywords: Environmental sustainability, Index theory, Total Factor Productivity Creation-Date: 2024-10-23 Number: 213 Handle: RePEc:oec:agraaa:213-EN