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Abstract

The objective of this paper is to calculate total support received by the South African agricultural sector during the period 1988/89 to 1993/94. In the calculation of the total support to agriculture in South Africa, the Producer Subsidy Equivalent (PSE) was used to determine the internal support received by producers. The PSE was not calculated on a product-specific basis, but for agriculture as a whole. Agricultural support in South Africa has increased steadily during the past few years. With the exception of the drought relief programmes in 1992/93, support amounted to approximately R4 billion a year since 1991/92. Market price support is the largest component of domestic support and has contributed about 48 percent of total support during the previous four years.

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