U.S. priorities in OECD agriculture work include: A) The monitoring and evaluation of Members’ agricultural policies
Working closely with experts in the U.S. and other governments, the OECD publishes an annual report that describes the main developments in agricultural policy in Member countries and the European Union.
The report discusses issues such as agricultural reforms, the introduction of new food-related regulations, and any important changes in farm-related environmental or rural development programs.
These annual reports also assess the level of agricultural support (what percent of farm income) that governments and consumers provide to farmers. The OECD developed a way of calculating internationally-comparable estimates for such support, which are called Producer Support Estimates (PSEs). PSEs greatly facilitate trade negotiations, such as in the World Trade Organization (WTO), since it helps governments agree on what the current levels are before they discuss cutting domestic subsidies that distort trade.
For 2005, the most recent year available, the PSE for the United States was 16%. For the same year, it was 32% for the European Union, 21% for Canada, and just 5% for Australia.
B) The assessment of trends in major commodity markets.
The OECD tracks economic, social, and other developments that can affect commodity markets and forecasts what will happen to those markets within a span of 10 years. The products it studies include sugar, cereals (such as wheat and rice), dairy products, and meat.
The OECD publishes its findings annually in a report called the Agricultural Outlook and recently began producing this work jointly with the Food and Agriculture Organization (FAO). Because of this partnership, the report can now cover developing countries as well as OECD Members.
C) The analysis of non-member agricultural policies.
The OECD completed studies on Brazil and China in 2005, and a report on South Africa in 2006. The OECD is now discussing the preparation of similar studies on other developing countries that are major agricultural producers and exporters.
D) The development of economic models that help determine how farm and rural households adjust to policy reforms, whether in Member or non-member countries. This work helps promote better understanding of farm households’ ability to cope economically with change.
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