Definition: Subsidies on agricultural products paid to other e...

Category: National accounts

Subsidies on agricultural products paid to other economic operators:
· refunds for the export of cereals (B1-100), fresh fruit and vegetables (B1-1500) etc.;
· grants for the production of oleaginous products (before 1992), protein products and flax (before 1993);
· grants for potato starch production (B1-1021);
· grants for dried fodder production (B1-130);
· grants for cotton production (B1-141);
· grants for the use of musts (B1-163);
· premiums on tobacco production (B1-171).
All the above-mentioned subsidies constitute subsidies on agricultural products.  However, only grants paid to agricultural producers (i.e. the first group) are added to the market price received by producers to obtain the basic price.  Subsidies on agricultural products paid to economic operators other than agricultural producers (i.e. the second group) are not entered in the EAA.  When the agricultural products concerned constitute intermediate consumption of the agri-food industries, the amount of the aid is deducted from the intermediate consumption of the agri-food industries. http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-27-00-782-__-I-EN.pdf