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By Eric Burgeat, Stefan Tangermann
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Additional info for Agricultural and Rural Development Policies in the Baltic Countries (Emerging Economies Transition)
Example text
47 *UDSK 6KDUH RI WKH Gross receipts ODUJHVW IDUPV LQ Farm income Support Sw i tz er la nd , Ko 19 N re 95 et a, he Au 20 rl a st 00 ra nds lia ,1 ,1 9 99 99 Fi 9/ 2 nl an 000 d C an , 19 9 ad a, 9 19 Ja D en pan 99 Eu m a ,1 ro pe rk, 99 4 19 a 96 U nU / ni te nion 9 7 d , St 19 at e s 99 ,2 00 0 100 90 80 70 60 50 40 30 20 10 0 T pr) OECD structural database. The distribution of support by farm size is similar to the distribution of gross receipts. This is because a large share of support in the OECD area is linked to the level of production12 or the level of input,13 and also because in many cases, support accounts for a significant share of gross receipts.
The principal beneficiaries of improved information would be policy makers and the public they serve. Until the coverage, timeliness and consistency of national microeconomic data is improved, policy measures, ostensibly aimed at improving the incomes of farm households, will be implemented without adequate knowledge of the nature, incidence or even existence of the problem that they are attempting to solve. 3. Box 1 in OECD (2003D) discusses briefly the issue of wealth. Farm families, who own part or all of the factors of production farmed, usually own considerable wealth, even when their income is low.
These strategies are reviewed in OECD (2000). 41 diversification of income sources, capital and debt management, marketing techniques, hedging on futures markets and insurance. In most countries, agricultural, social and fiscal policies, whatever their objective, also shield farm households against large losses of income (see section on policy impacts). As a result, aggregate farm income at the national level does not appear to exhibit strong variability. At the individual level, excessive farm income variability can, however, be a problem, in particular for farms that have not been able to adopt basic income risk strategies and, as a result, are too dependent on one source of income or do not have sufficient savings or capital raising capacity.