Last updates: Website in July 2020, Consortium database: July 2020, IO contributions: December 2019
The annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from policy measures that place no restrictions on the commodity produced but require the recipient to produce some commodity of their choice.
Costs incurred to bring a commodity from one point in the value chain to another taking into consideration, where relevant, efficiency improvements in the different steps of the value chain such as agents margins, transport, processing, handling, etc. In addition, value chain specific taxes are taken away if they have been included in the observed access costs.
Ratio between the price gap and the adjusted reference price evaluated at the same point in the value chain. It measures the effect (in relative terms) of trade and market policies, excessive access costs within the commodity value chain, exchange rate policy, international market distortions and overall market performance on prices received by different agents in the value chain. It can be calculated at the point of competition and at the farm gate.
Difference between the domestic price and the adjusted reference price evaluated at the same point in the value chain. It measures the effect (in absolute terms) of trade and market policies, excessive access costs within the commodity value chain, exchange rate policy, international market distortions and overall market performance on the prices received by different agents in the value chain. It can be calculated at the point of competition and at the farm gate.
Benchmark price measured at the point of competition or farm gate level after adjustment for respective access costs. It is derived using the data as defined in the adjusted domain. It reflects the maximum price that could be obtained if trade and market policies, excessive access costs within the domestic commodity value chain, international market distortions were removed; the country would follow a non-distortive exchange rate policy and overall market performance in the country enhanced. It is derived using adjusted data and can be calculated at the point of competition and at the farm gate.
Aggregate measurement of support (AMS) is the indicator on which the domestic support discipline for the Uruguay Round Agreement on Agriculture is based. It is determined by calculating a market price support estimate for each commodity receiving such support, plus non-exempt direct payments or any other subsidy not exempted from reduction commitments, less specific agricultural levies or fees paid by producers.
Context: It differs from the Producer Support Estimate (PSE) in many respects. The most important difference is that price gaps in the AMS calculation are estimated by reference to domestic administered prices and not to actual producer prices, and that external reference prices are fixed at the average levels of the 1986-1988 base period. In addition, many budgetary transfers included in PSEs are excluded from the AMS.
