By Organisation for Economic Co-Operation and Development
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Additional resources for Farm Household Income: Issues and Policy Responses
Income risk management programmes have often provided unnecessary and unintended support because of adverse selection, moral hazard27 and rent seeking from producers whose objective is to maximise their benefits (Skees, 2000). Moreover, most of these risk reducing policy measures do not take account of all sources of income. Such programmes have probably discouraged the development of private mechanisms. In many cases, the continuation of high support level has slowed adjustment to more viable and sustainable types of farming, or to other activities.
1. Evolution of farm income, total income of farm households and total income of all households in selected countries in real terms As a % of the total income of farm households at the beginning of the period (average of the first three years) Australia, 1986-99 140 Total income of farm households 120 100 Total income of all households 80 60 40 Farm income 20 0 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 Belgium, 1987-99 120 Total income of farm households 100 80 60 Farm income 40 20 0 1987 1988 1989 1990 1991 FARM HOUSEHOLD INCOME – ISBN 92-64-09965-4 – © OECD 2003 1992 1993 1994 1995 1996 1997 1998 1999 47 I.
C. Not computable because of negative averages for some quartiles. 1 for a definition of income indicators. 1. Gross receipts are the sum of receipts from sales of crop and livestock products, direct payments, receipts from agricultural activities off the farm and, in some countries, on-farm use. 2. Market price support is calculated by applying the ratio of market price support to the total value of gross receipts to receipts of each commodity for which an individual market price support is calculated in the PSE database and by applying an average ratio of all PSE commodities to remaining receipts.
Farm Household Income: Issues and Policy Responses by Organisation for Economic Co-Operation and Development