Fiscal policies in agriculture and producer support estimates in Latin America and the Caribbean
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Fiscal policies have multiple effects on the economy and, therefore, on the agricultural sector and rural economies within it. This paper analyzes agricultural taxes and agricultural expenditures; it also looks into different forms of public policy support for agricultural producers and follows the Producer Support Estimates (PSE) methodology already applied to the Latin America and the Caribbean (LAC) region. This methodology combines fiscal support and other forms of support, such as those deriving from trade policies. Finally, this paper presents a summary of evaluation studies about different types of public expenditure for agriculture and draws some conclusions.
The document presents a description of the structure of the rural environment, demography, the supply of goods and services, the main inequalities, levels of poverty, importance and role of family agriculture and other economic activities (diversification), the main features of rural society and the presence of the private sector. It will also discuss trends in migration and other social or economic processes relevant to the description of the rural situation.
The text will also discuss the importance of rural development in achieving the SDGs by identifying the current situation and the extent of change required to meet the SDGs.