Home About National indicators Partners Resources

Trends in potentially environmentally harmful elements of government support to agriculture (producer support estimate)

Key indicator facts

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Last update

2016

Coverage

Global

Availability

Freely available

Partners

Oecd

Organisation for Economic Cooperation and Development

Contact point

Katia Karousakis: Katia.KAROUSAKIS@oecd.org

Key resources

Websites

OECD Agriculture and Fisheries

Indicator description

The data provides an indication on the trends in potentially environmentally harmful elements of government support to producers, as measured by the Producer Support Estimates (PSE). Government support refers to payments made to farmers to manage the supply of agricultural commodities, influence their cost, supplement producers’ income and achieve other social and environmental aims. This support to farmers, estimated in terms of the OECD PSE, can be ranked according to its potential impacts on the environment.

Related Aichi Targets

Primary target

3

Target 3:

By 2020, at the latest, incentives, including subsidies, harmful to biodiversity are eliminated, phased out or reformed in order to minimize or avoid negative impacts, and positive incentives for the conservation and sustainable use of biodiversity are developed and applied, consistent and in harmony with the Convention and other relevant international obligations, taking into account national socio economic conditions.

Secondary targets

Target 7:

By 2020 areas under agriculture, aquaculture and forestry are managed sustainably, ensuring conservation of biodiversity.

Primary target

3

Target 3:

By 2020, at the latest, incentives, including subsidies, harmful to biodiversity are eliminated, phased out or reformed in order to minimize or avoid negative impacts, and positive incentives for the conservation and sustainable use of biodiversity are developed and applied, consistent and in harmony with the Convention and other relevant international obligations, taking into account national socio economic conditions.

3
7

Related SDGs

E sdg goals icons individual rgb 02

GOAL 2 - End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

Target 2.3| Relevant indicator

By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment.

Target 2.4| Relevant indicator

By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.

Target 2.b| Relevant indicator

Correct and prevent trade restrictions and distortions in world agricultural markets, including through the parallel elimination of all forms of agricultural export subsidies and all export measures with equivalent effect, in accordance with the mandate of the Doha Development Round

E sdg goals icons individual rgb 15

GOAL 15 - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

Target 15.9| Relevant indicator

By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies and accounts.

E sdg goals icons individual rgb 02

GOAL 2 - End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

E sdg goals icons individual rgb 15

GOAL 15 - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

E sdg goals icons individual rgb 02
E sdg goals icons individual rgb 15

Other related MEAs and processes

Cms logo blue4c

CMS

Target 4| Relevant indicator

Incentives, including subsidies, harmful to migratory species, and/or their habitats are eliminated, phased out or reformed in order to minimize or avoid negative impacts, and positive incentives for the conservation of migratory species and their habitats are developed and applied, consistent with engagements under the CMS and other relevant international obligations and commitments.

Indicator icon

IPBES Global Assessment Chapters

Chapter 2| Official indicator

Status and trends; indirect and direct drivers of change

Chapter 3| Official indicator

Progress towards meeting major international objectives related to biodiversity and ecosystem services

Indicator icon

IPBES Regional Assessment Chapters

Chapter 4| Official indicator

Direct and indirect drivers of change in the context of different perspectives of quality of life

Chapter 6| Official indicator

Options for governance, institutional arrangements and private and public decision-making across scales and sectors

Ramsar.logo

Ramsar

Target 1| Relevant indicator

Wetland benefits are featured in national/ local policy strategies and plans relating to key sectors such as water, energy, mining, agriculture, tourism, urban development, infrastructure, industry, forestry, aquaculture, fisheries at the national and local level

Titel logo letters 4c

UNCCD

Expected impact 2.1| Relevant indicator

Land productivity and other ecosystem goods and services in affected areas are enhanced in a sustainable manner contributing to improved livelihoods.

Cms logo blue4c

CMS

Indicator icon

IPBES Global Assessment Chapters

Indicator icon

IPBES Regional Assessment Chapters

Ramsar.logo

Ramsar

Titel logo letters 4c

UNCCD

Cms logo blue4c
Titel logo letters 4c
Indicator icon
Indicator icon
Ramsar.logo

Themes

Agriculture

Partners

Oecd

Key indicator facts

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Last update

2016

Coverage

Global

Availability

Freely available

Indicator description

The data provides an indication on the trends in potentially environmentally harmful elements of government support to producers, as measured by the Producer Support Estimates (PSE). Government support refers to payments made to farmers to manage the supply of agricultural commodities, influence their cost, supplement producers’ income and achieve other social and environmental aims. This support to farmers, estimated in terms of the OECD PSE, can be ranked according to its potential impacts on the environment.

Contact point

Katia Karousakis: Katia.KAROUSAKIS@oecd.org

Graphs / Diagrams

Figure 1. Note: The source of the classification is OECD (2013), Policy Instruments to Support Green Growth in Agriculture: A Synthesis of Country Experiences, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264203525-en. Source: OECD Secretariat calculations based on OECD PSE/CSE database, 2016.

Current storyline

Support considered potentially most environmentally harmful consists of Market price support; Payments based on commodity output, without imposing environmental constraints on farming practices; and Payments based on variable input use, without imposing environmental constraints on farming practices. For full description of the various categories, see in particular pages 67-68 in OECD (2013) Policy Instruments to Support Green Growth in Agriculture.

It should be emphasised however that neither the total PSE nor its composition in terms of different categories of policies can be interpreted as indicating the actual impact of policy on production and markets. The actual impacts (ex post) will depend on the many factors that determine the aggregate degree of responsiveness of farmers to policy changes – including any constraints on production. For example, while it is true that market price support mechanisms and payments based on output are potentially the most harmful for the environment, whether they actually are harmful depends on a host of other factors, including whether production quotas are attached to them and whether they incorporate strong cross-compliance requirements, or are constrained by agri-environmental regulations independent of the support payments. Similarly, payments based on area, animal numbers, farm receipts or income, and historical entitlements are only potentially neutral in their effects on the environment, but may be harmful - or even beneficial - depending on specific programme designs and other regulation.

The potentially most environmentally harmful government support to farmers have, on average, declined in OECD countries since 1990. Notwithstanding concerted efforts to decouple support from commodity output and prices, the potentially most environmentally beneficial support accounts for only 7% in the OECD area.

The actual impact this has on environment (ex post) will depend on a host of other factors, as described above. Moreover, “potentially environmentally harmful” does not necessarily mean “potentially harmful for biodiversity”.

Data and methodology

Coverage: This PSE data is obtained at the national level and then aggregated for the OECD as a whole, as depicted above. PSE estimates are calculated for the OECD countries (PSE for the EU is obtained as whole) and eight non-OECD countries (Brazil, Colombia, China P.R., Indonesia, Kazakhstan, Russia, South Africa and Ukraine). Any country is welcome to report to this database.

Scale: Regional.

Time series: From 1990 to present.

Next planned update: 2017.

Possible disaggregations: National.

Methodology: The methodology is explained in OECD (2013), Policy Instruments to Support Green Growth in Agriculture: A Synthesis of Country Experiences, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264203525-en.

National use of indicator

The PSE data is updated on an annual basis and are publicly available: www.oecd.org/tad/agricultural-policies/producerandconsumersupportestimatesdatabase.htm

Further resources

Key indicator facts

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Indicator type

Pressure

Applicable for national use

Yes

Indicator classification

Operational and included in the CBD's list of indicators

Last update

2016

Coverage

Global

Availability

Freely available

Partners

Oecd

Organisation for Economic Cooperation and Development

Contact point

Katia Karousakis: Katia.KAROUSAKIS@oecd.org

Key resources

Websites

OECD Agriculture and Fisheries