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Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain: Implications for Agricultural Markets and Farm Incomes

Martin von Lampe, Aikaterini Kavallari, Heleen Bartelings, Hans Meijl (), Martin Banse (), Joanna Ilicic-Komorowska, Franziska Junker and Frank van Tongeren ()
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Martin von Lampe: OECD
Aikaterini Kavallari: LEI-WUR
Heleen Bartelings: LEI-WUR
Joanna Ilicic-Komorowska: OECD
Franziska Junker: Thünen Institute of Market Analysis

No 69, OECD Food, Agriculture and Fisheries Papers from OECD Publishing

Abstract: This report analyses policies along the agricultural supply chain, in particular support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and Biofuel Support Policies Database that covers polices in 48 countries (including the EU and its Members) and assesses the market effects of these policies with a computable general equilibrium model, MAGNET. This report finds that biofuel support policies generate additional demand for feedstock commodities and, therefore, higher incomes for crop farmers in subsidising and non-subsidising countries. In contrast, these policies increase costs to downstream industries, including livestock farmers, and to consumers. Fertiliser support policies reduce crop production costs and hence increase yields, production and incomes for crop farmers in subsidising countries. However, they lower crop farm incomes abroad, while livestock farmers in both country groups face lower feed costs and, in consequence, lower livestock prices.

Keywords: agricultural markets; agriculture; biofuel markets; biofuel support policies; computable general equilibrium model; energy prices; farm incomes; fertiliser markets; fertiliser support policies; land use; quantitative analysis (search for similar items in EconPapers)
JEL-codes: D58 O13 Q11 Q17 Q18 Q42 (search for similar items in EconPapers)
Date: 2014-11-28
New Economics Papers: this item is included in nep-agr
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