Income support is a direct payment based on the difference between an average price and the market price. The cost of this program in 2002 was about $1.03 billion.

Japan uses regulations on allowable pesticide and veterinary drug residues in rice and has a tariff rate quota on rice.

Mexico – Since the transition period of the North American Free Trade Agreement, Mexico has drastically reduced some market interventions. However, some reversal of this trend has occurred in recent years with the introduction of a target income program for some crops and an increase in energy and irrigation subsidies.

The target price for cotton is 42¢/lb. from 2008-2009 to 2013. Cotton producers also receive a per-hectare income support subsidy. Under this program, farmers with production areas between 1 and 5 hectares receive the equivalent of $44/acre, while farmers with larger production areas receive $36/acre.

Nigeria – Government supports focus on input supply, extension service deliveries, the administration of soft loan programs and the maintenance of a buffer stock program to stabilize commodity prices. The Nigerian agricultural sector remains heavily protected with an average applied tariff of 40%.

However, imports for sorghum and corn remain banned because the country is self-sufficient and is determined to protect its local producers.

Pakistan – The government agrees to make purchases when the market price of major commodities produced in the country falls below an announced level. The government subsidizes agricultural production credit through both government and private banks for the purchase of seeds, fertilizers, pesticides/insecticides, animal feed, labor, fuel, irrigation water charges and agricultural machinery.

Input subsidies are offered for electricity and fertilizer and development loans are also provided for machinery purchases. The government also subsidizes natural gas purchases for fertilizer production at around $200 million/year.

A minimum support price for seed cotton is announced at the start of each marketing season. The Trading Corporation of Pakistan intervenes in the market if the prices fall below the support price. For 2008-2009, the support price is 59¢/lb.

Russia – Grain is purchased into a fund if market prices for farm products drop lower than the pre-determined level. Grain is sold out of the fund if there is a shortage on the market or if market prices exceed the predetermined level. Budgetary constraints limit the ability for direct subsidies or other forms of support.

Agricultural energy is subsidized. This includes such items as fuel for machinery and natural gas. The Russian government remains committed to increasing production by increasing credit and subsidizing crop inputs, as well as offering a special machinery-leasing fund. However, implementation of these programs depends on the federal budget allocation to agriculture. While no prescribed rules govern seed subsidies, many local jurisdictions offer credit for seed purchases, sell seeds below their commercial price or cover a portion of seed treatment expenses.

Thailand – Soybean growers receive no production support from the government but processors are required to purchase soybeans at minimum prices. Currently, food processors must buy domestic Grade 1 soybeans for no less than $10.49/bu. at the factory or $9.75 at the farm.

West Africa – There are no specific border policies to limit cotton imports, mainly because of weak domestic textile industries that exclusively use locally produced cotton. Exports of cotton are subject to a tax, which vary from one country to another. Mali applies a 3% tax on exports.

In Benin, the producer price for cotton is fixed at the beginning of each marketing year. Currently it is set at 55¢/lb. for first-grade cotton and 42¢/lb. for second-grade cotton. In Burkina Faso, the producer price for cotton is set at 48¢ for first-grade cotton, 39¢ for second-grade cotton and 33¢ for third grade cotton. In Mali, the base price is established at 45¢/lb. Chad’s procurement prices are the lowest among the African countries.