Access to micro-data: Experience from using data for agricultural policy analysis

1. Access to micro-data: Experience from using data for agricultural policy analysis Catherine Moreddu OECD, Agriculture Directorate OECD conference: Assessing the feasibility of micro-data access, Luxembourg, 26-27 October 2006

2. A user’s point of view The Directorate for Food, Agriculture and Fisheries of the OECD: • analyses policy issues • evaluates current policies and policy reform wrt to their objectives and to reform principles (including equity)

3. Why disaggregated information is needed for agricultural policy analysis? • Policies (policy reform) have distributional impacts, some have distributional objectives • Increasing interest in these issues: increasing heterogeneity in farm households, payments more visible, targeting, etc. • More quantitative approaches (econometrics) • Many government-related institutes are engaged in this type of work Need for disaggregated (micro-level) data

4. Recent examples • Income study:distribution of support and impact on the distribution of income • Decoupling:estimation of the impact of different types of payments on farmers’ production decisions (risk aversion) • Agricultural policy and trade reform:potential effects at global, national and household levels

5. Different types of analysis • Data analysis • Econometric and modelling analysis

6. Approaches • Income study: • LIS: Frequency of low-income households • Customised FADN groups (quartiles, deciles): distribution of support • Decoupling: • Consultant with access to micro data (FADN, insurance data) to do the analysis • Agricultural policy and trade reform: • Consultants with access to survey data, or • Consultants to merge existing data sources into a database to do the analysis

7. Data issues • Coverage (off-farm income, small farms) • Frequency and timeliness (farm income variability) • Panel • Small number of farm households in general surveys • Confidentiality (limits access and matching of data sources) • Political sensitivity (income)

8. Lessons • It is crucial for agricultural policy analysis to be able to use disaggregated information • Regular analysis at micro-level is beyond AGR resource availabilities • National research institutes would be better placed: • Access to data • Technical expertise • Country knowledge Network

9. First phase: 2007-08 • OECD (Secretariat and delegates) to suggest the type of policy issues, which will determine: • the scope and data needs: OECD countries, farm or rural households? • experts and institutes with adequate access to data and expertise, and interested in collaboration • OECD role: organiser, synthesis reports • Network expert meetings to identify: • priority research issues • Data availability • Analytical approach • Time table

10. Initial thoughts on objectives • Identify data availability:Comparing definitions and availability of data concerning the economic and financial status of farm households in OECD Member countries • Undertake research based on those data, e.g. • Evaluate the income situation of farm households • distributional consequences of agricultural and trade policy reform • linkages between the diversification of income sources and the rural economy • Allow flexibility in analytical approaches: no “one size fits all”

11. Your views are welcome on: • Attractivity for partners • Feasibility • Institutional setting: role for the OECD, relationships with existing networks, incentives

12. Thank you for your attention