Market Price Support


by IFPRI | November 16, 2022
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Market Price Support (MPS) is an indicator of the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers arising from policy measures creating a gap between domestic producer prices and reference prices of a specific agricultural commodity measured at the farm-gate level.

Context: Conditional on the production of a specific commodity, MPS includes the transfer to producers for total production (for domestic use and exports), and is measured by the price gap applied to current production.

The MPS is net of financial contributions from individual producers through producer levies on sales of the specific commodity or penalties for not respecting regulations such as production quotas (levies on output). In the case of livestock production, it is net of the market price support on domestically produced coarse grains and oilseeds used as animal feed (excess feed cost).