Régulation du marché des oléagineux : impact sur l'offre française en 1992 des mesures communautaires de 1991

The concept of the transfer efficiency of agricultural support is explored. Efficiency is defined as the ratio of the net increase in farm income to total transfers from consumers and taxpayers. Two components determining this ratio are discussed: distributive losses and economic costs. The factors influencing the size of these components are identified. Two neglected aspects of transfer efficiency, leakages to upstream and downstream industries and the costs of taxation, are explored in more detail. Because the transfer efficiency of many forms of agricultural support is likely to be low, it is argued that a careful assessment of the sources of efficiency losses is necessary. Even if the form of support can be made more transfer efficient and less trade distorting, it may be desirable to reduce the overall level of support to farmers through time in order to increase economic growth and domestic welfare.