Producer Support Estimate


by IFPRI | November 16, 2022
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The Producer Support Estimate (PSE) is an indicator of the annual monetary value of gross transfers from consumers and taxpayers to support agricultural producers, measured at farm gate level, arising from policy measures, regardless of their nature, objectives or impacts on farm production or income.

Context: The PSE measures support arising from policies targeted to agriculture relative to a situation without such policies — i.e., when producers are subject only to general policies (including economic, social, environmental and tax policies) of the country.

The PSE is a gross notion implying that any costs associated with those policies and incurred by individual producers are not deducted. It is also a nominal assistance notion meaning that increased costs associated with import duties on inputs are not deducted. But it is an indicator net of producer contributions to help finance the policy measure (e.g. producer levies) providing a given transfer to producers. The PSE includes implicit and explicit transfers.

The percentage PSE (%PSE) is the ratio of the PSE to the value of total gross farm receipts, measured by the value of total farm production (at farm gate prices), plus budgetary support.

The nomenclature and definitions of this indicator replaced the former Producer Subsidy Equivalent in 1999.

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