Price Support to the Ec Agricultural Sector: An Optimal Policy?

Munk, Knud J.

doi:10.1093/oxrep/5.2.76

“…Because of the static framework, it is not possible to analyze structural changes. As Munk (1989) and Hofreither (1992) have stated, administrative and enforcement costs must also be considered when drawing final conclusions. Direct Income support, however, is rarely decoupled and can hence be accompanied by many distortions (OECD, 1990, pp.…”

Section: Discussionmentioning

confidence: 99%

Efficient income redistribution for a small country using optimal combined instruments

Salhofer¹

1996

Agricultural Economics

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In this paper I improve Gardner's surplus transformation curve framework by assuming that governments are able to vary many policy instruments simultaneously instead of only one. I use my framework to find the combination of the currently used instruments which provides the most efficient income redistribution for the Austrian bread grains market. Comparing the most efficient policy with the actual policy reveals that 464 X 10 6 Austrian shillings were wasted. I theoretically compare for a small country the transfer efficiency of every possible pair of the four major agricultural policy instruments: floor price, (production) quota, co-responsibility levy, and deficiency payments. Without considering the marginal cost of public funds (MCF), deficiency payments cum quota (equal to a fully decoupled direct income support) is the most efficient policy, succeeded by floor price cum quota, and floor price cum deficiency payments. If the MCF is taken into account, the ranking crucially depends on the market parameters, the transfer level, and the value of the MCF. For the Austrian bread grains market, I empirically demonstrate that given the present support level, a fully decoupled direct income support redistributes income most efficiently as long as the MCF is lower than 1.17. Beyond this value a floor price cum quota policy becomes more efficient. A floor price cum deficiency payments policy is never superior to the floor price cum quota. 0169-5150/96/$15.00 © 19q6 Elsevier Science B.V. All rights reserved

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“…33-53;Kjeldahl, 1993). As Munk (1989) and Hofreither (1992) have stated, administrative and enforcement costs must also be considered when drawing final conclusions. Finally, the environmental impact of the different policy options have not been taken into account (Gardner, 1991).…”

Section: Discussionmentioning

confidence: 99%

Efficient income redistribution for a small country using optimal combined instruments

Salhofer

¹

1996

Agricultural Economics

View full text Add to dashboard Cite

In this paper I improve Gardner's surplus transformation curve framework by assuming that governments are able to vary many policy instruments simultaneously instead of only one. I use my framework to find the combination of the currently used instruments which provides the most efficient income redistribution for the Austrian bread grains market. Comparing the most efficient policy with the actual policy reveals that 464 X 10 6 Austrian shillings were wasted. I theoretically compare for a small country the transfer efficiency of every possible pair of the four major agricultural policy instruments: floor price, (production) quota, co-responsibility levy, and deficiency payments. Without considering the marginal cost of public funds (MCF), deficiency payments cum quota (equal to a fully decoupled direct income support) is the most efficient policy, succeeded by floor price cum quota, and floor price cum deficiency payments. If the MCF is taken into account, the ranking crucially depends on the market parameters, the transfer level, and the value of the MCF. For the Austrian bread grains market, I empirically demonstrate that given the present support level, a fully decoupled direct income support redistributes income most efficiently as long as the MCF is lower than 1.17. Beyond this value a floor price cum quota policy becomes more efficient. A floor price cum deficiency payments policy is never superior to the floor price cum quota. 0169-5150/96/$15.00 © 19q6 Elsevier Science B.V. All rights reserved

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“…deformující účinek a jím způsobené náklady deformace, který není u všech typů dotací stejný. Obecně (Bečvářová, 1993;Henrichsmeyer, 1994;Munk, 1989) lze dotace podle formy a míry deformujících účinků rozdělit do čtyř základních typů, a to na -cílené transfery celkové částky (přímé dotace do důchodu), -proporcionální dotace primárních faktorů, -subvence výstupu, nebo subvence spojené s použi-tím vstupů, -podporu tržních cen.…”

Section: Teoreticko-metodologickáunclassified

The Support and Guarantee Fund for Farmers and Forestry as an enhancement instrument of the agricultural subsidy effectiveness

Bečvářová¹

2014

Acta Univ. Agric. Silvic. Mendelianae Brun.

1

0

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BEČVářOVá, V.: The Support and Guarantee Fund for Farmers and Forestry as an enhancement instrument of the agricultural subsidy effectiveness. Acta univ. agric. et silvic. Mendel. Brun., 2005, LIII, No. 6, pp. 7-18 The paper is focused on the performance measurement of the Support and Guarantee Fund for Farmers and Forestry (SGFFF) as a main instrument of a capital reinforcement of the Czech agricultural enterprises restructuring during the last ten years. New possibilities shaped up by the CAP exercise are evaluated as well. The principles of the SGFFF function from the point of view of agricultural restructuring and regional allocation of the financial resources as well as the reason why subsidy of the supported loans' interest rates have been employed are cleared up there. Results are discussed upon an analysis of the Fund activity. According to results of the analysis, it can be claimed that the Fund has became an important part of supports for agricultural sector. From the point of view of criterions of regional allocation of financial resources there was found out the level of supports has not been derived from the different natural and soil quality. The economic results and a high level of the prospectus have been used as main criterions for the decision-making system. The activity of SGFFF continues within the State Aid in the framework of the CAP EU and so that the loans for farmers are still more available for restructuring of the Czech agriculture and improving of its competitiveness. agriculture, competitiveness, loan, interest rate, restructuring, subsidy of primary factors Ročník LIII 1 Číslo 6, 2005 7Problém jak úspěšně obstát na globalizujícím se trhu potravin, před kterým stojí evropské a tedy i české zemědělství, má v podstatě dvě varianty řešení: (1) trvat na historicky vytvořené výrobní struktuře založené především na rozdílnosti v kvalitě přírodních podmí-nek, zejména v kvalitě zemědělské půdy jako výcho-diska pro odůvodnění diferencovaných výsledků zemědělské výroby a nároků na získání dalších finanč-ních prostředků formou takového typu dotací, které umožní pokračovat v tradiční zemědělské výrobě a co možná nejdéle pomohou "ochránit" tradiční evropské výrobce před rostoucí konkurencí levnějších produktů a potravin z ostatních částí světa, (2) hledat pozitivní řešení často spojené s výraznými strukturálními změ-nami ve výrobním zaměření i dalších aktivitách ekonomické činnosti jednotlivých podniků na bázi principů i poznatků nové ekonomiky (knowledge-based economy), které nejen že odhalují hlubší souvislosti a principy chování současného trhu potravin, ale při kvalifikovaném využití motivují právě k restrukturalizačním krokům aktivně reagujícím na vývoj a podmínky poptávky na relevantních trzích. Touto cestou pak hledat klíč k růstu konkurenceschopnosti a ekonomické výkonnosti zemědělských podniků. První varianta spojená s ekonomicky i politicky již neodůvodnitelným růstem požadavků na další zdroje alokované do produkční sféry v zemědělství není reálná. Právě společná zemědělská ...

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Price Support to the Ec Agricultural Sector: An Optimal Policy?

Cited by 20 publications

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Efficient income redistribution for a small country using optimal combined instruments

Efficient income redistribution for a small country using optimal combined instruments

Efficient income redistribution for a small country using optimal combined instruments

The Support and Guarantee Fund for Farmers and Forestry as an enhancement instrument of the agricultural subsidy effectiveness

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