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Area payments are budgetary payments made to individual producers on the basis of area (acres or hectares) of eligible land.

Under some programmes, payments are made per hectare of land planted to a specific crop in order to supplement producer returns earned through market price. When used as part of a supply control measure, acreage payments are made per hectare of land fallowed or withdrawn from agricultural use, or for non-production of specific commodities. In some cases, an upper limit is set on the number of hectares or the percentage of total farm area eligible for acreage payments. In the EU, area payments are made to individual producers per hectare of eligible land planted to cereals, oilseeds and protein crops as compensation for decreases in administered prices. The number of hectares eligible is the base area. These payments are conditional on the implementation of a land set-aside programme, referred to as mandatory set- aside.

Source Publication:
Agricultural Policies in OECD Countries: Monitoring and Evaluation 2000: Glossary of Agricultural Policy Terms, OECD.

Statistical Theme: Agriculture and fisheries statistics - Agricultural policy indicators

Created on Tuesday, September 25, 2001

Last updated on Friday, March 15, 2002