Pounds of U.S. rice purchasable for one nominal unit of foreign currency West Year Arkansas long grain rice Canada Germany Netherlands Spain South Dollars Japan Yen Mark Italy Lira Guilder UK. Pound Pescia Korea Won Pounds of U.S. rice purchasable for one inflation-adjusted unit of foreign currency EUROPEAN COMMUNITY SUBSIDIES Mr. WHITTEN. How much is the European Community spending on agricultural subsidies? Mr. GARDNER. European Community, EC, spending on agricultural support increased 143 percent between 1980 and 1988 as a result of sharp increases in EC commodity surpluses and, consequently, large outlays for storage and exports. The EC spent 25.84 billion European Currency Units, ECU, or $28.32 billion on agricultural support in 1989, 10 percent below expenditures for 1988. EC support for agriculture accounted for 57 percent of the total EC budget in 1989 compared to 66 percent in 1988. Market support accounted for 94 percent of total spending in 1989 with the remainder devoted to structural programs. Spending on market support operations, Guarantee Fund, totalled_24.41 billion ECU, $26.75 billion, in 1989. This represents a decline of almost 12 percent from the record EC spending in 1988 due to firm world prices for grains and oilseeds, a strengthening in the value of the dollar vis-a-vis the ECU and, therefore, lower export refunds, and smaller harvests in the fruit and vegetable and wine sectors. EC spending on structural programs, Guidance Fund, totaled 1.43 billion ECU, $1.57 billion, in 1989, 19 percent more than a year ago. The Guidance Section has been expanded in recent years to assist under-developed regions in the EC through structural schemes, farm investment aid, aid to young farmers, training, etc. The EC overspent its agricultural budget in 1987 so that the last two months of farm spending for 1987 had to be carried over into 1988. Had it not been for the 1988 North American drought, the EC may have faced an even more severe budget crisis in 1988. The EC accounting year now ends on October 15. EC budget expenditures for agriculture in 1990 are forecast by the EC Commission to increase to around 28.10 billion ECU, $30.79 billion. This is 3 percent lower than the record 1988 level of expenditures but nearly 9 percent higher than in 1989. Market support operations for grains, sugar, oils and fats, and fruits and vegetables are all expected to rise in 1990 while subsidies for dairy and meats and eggs are forecast to decrease. Expenditures for structural programs are set to increase. I will provide a table and chart for the record summarizing EC agricultural spending. [The information follows:] Total market organization 11,016 10,903 12,093 15,431 17,996 19,517 21,598 22,262 25,503 23,960 25,778 Guarantee Fund, total 5/ 11,315 11,141 12,406 15,920 18,372 19,843 22,193 23,176 27,658 24,409 26,452 Exchange rate (S/ECU) Total agricultural spending (million $) Agriculture's share of total EC budget (%) NA = not available. 11,895 11,717 13,056 16,648 19,048 20,563 22,967 24,085 28,861 25,843 28,100 1.3923 1.1165 0.9797 0.8902 0.7890 0.7631 0.9837 1.1544 1.1825 1.0958 8/ 1.0958 8/ 16,561 13,082 12,791 14,909 15,029 15,692 22,593 27,804 34,128 28,319 30,792 73.0 64.6 63.1 66.7 69.9 73.2 65.3 67.3 65.9 57.4 60.1 Totals may not add in some cases due to rounding. 1/ Expenditure charged against the 1987 budget (Jan. 1, 1987 to Oct. 31, 1987); remainder of year budgeted against 1988. 2/ Expenditure charged against the 1988 budget (Nov. 1, 1987 to Oct. 15, 1988); remainder of year budgeted against 1989. 3/ Expenditure charged against the 1989 budget (Oct. 16, 1988 to Oct. 15, 1989); remainder of year budgeted against 1990. 4/ Appropriations. 5/ Market support. 6/ Includes rice. 7/ Structural programs. 8/ Average of rates for Jan.- Nov. 1989. Sources: Gardiner, Walter H., and Michael T. Herlihy, "EC Expenditures on Agricultural Support." Western Europe: Agriculture and Trade Report, July 1989, and Commission of the European Communities. |