The Nominal Rate of Protection (NRP) measures the extent to which a set of agricultural policies affects the market price of a commodity. It is computed as the price difference, expressed as a percentage, between the farm gate price received by producers and an undistorted reference price at the farm gate level. This indicator is not aimed to provide a holistic measurement of various agricultural policies, in contrast with the Producer Support Estimate (PSE) or the Nominal Rate of Assistance (NRA). It focuses only on the price implications of policies and will be larger for countries using price interventions compared to countries using farm subsidies. While applied to the production value evaluated at reference prices, the value of distortions is related to the market price support (MPS) metric.
This indicator being based on the difference between an observed farm gate price and a constructed reference price at farm gate level, it is sensitive to the assumptions and quality of information used in the construction of the reference price (exchange rate, quality and quantity adjustments, transportation and processing costs...). For detailed information regarding the computation of the reference price at farm gate and the market price difference (MPD), see OECD PSE Manual, Section 4.5.
The official exchange rate is used to convert international reference prices to local currency units.
The Consortium provides average NRPs for different regional and sectoral aggregates. Product and country coverage of an aggregate may vary over time due to changes in data availability. The number of products and/or countries included in each aggregate are indicated in individual mouseover points in the visualizations, as well as in the csv download.
*Notes (multiple numbers signify multiple modifications):
0 No changes
1 Production quantity modified by the consortium
2 Producer Price at farm gate computed by the consortium
3 Reference Price at farm gate computed by the consortium
4 Reference Price at farm gate modified by the consortium when no policy assumed (MPD=0)
5 Producer Price at farm gate provided by the consortium using external sources
6 Reference Price at farm gate provided by the consortium using external sources
7 Monetary units corrected by the consortium
8 Preliminary Results for India. OECD update forthcoming
9 Aggregate computed by the Consortium
10 Exchange rate modified for computation of the reference price
11 Exchange rate modified for all conversion in USD
12 Consumption quantity computed by the consortium using external sources
13 MPS set to 0 when IO experts consider it as irrelevant
14 SugarBeet price used
15 Raw Sugar price used
16 Sugarcane price used
All central information regarding Reference and Farmgate prices are based on each International Organization’s database. The Consortium adds or modifies the information only to guarantee comparability between sources, completeness of the consolidated database, and consistency of the methodology.