Comments of the united states on the answers of brazil to further questions from the panel to the parties following the second panel meeting
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- Results of Brazil’s 14/16 th Methodology
- 2. Brazil’s (Simplified) Allocation Methodology
- MY 1999 PFC Payments by Crop for Farms Producing Upland Cotton And Holding Upland Cotton Base
- MY 2000 PFC Payments by Crop for Farms Producing Upland Cotton And Holding Upland Cotton Base
- MY 2001 PFC Payments by Crop for Farms Producing Upland Cotton And Holding Upland Cotton Base
- MY 2002 Direct and Counter-Cyclical Payments by Crop for Farms Producing Upland Cotton And Holding Upland Cotton Base
- MY 1999 Farms Producing Upland Cotton And Holding Upland Cotton Base (PFC Payment Allocation)
- MY 2000 Farms Producing Upland Cotton And Holding Upland Cotton Base (PFC Payment Allocation)
- MY 2001 Farms Producing Upland Cotton And Holding Upland Cotton Base (PFC Payment Allocation I)
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10. For purposes of comparison, Brazil reproduces the results of its “14/16th” methodology, as presented to the Panel at paragraphs 8 of Brazil’s 22 December 2003 Answers to Questions and Brazil’s 9 September Further Submission. Table 1.6
11. The results of this methodology are only marginally below the results of Brazil’s 14/16th methodology, although this methodology would assume that upland cotton produced on farms that do not hold upland cotton base would not receive any contract payments at all, and that upland cotton contract payments on farms that produce upland cotton and hold base would only allocated up to the share of contract acreage that is actually planted to upland cotton. The reason for the close similarity between the 14/16th methodology and the cotton-to-cotton methodology results is that the overwhelming majority of upland cotton is planted on upland cotton base (86.34 per cent in MY 1999, 82.05 per cent in MY 2000, 80.10 per cent in MY 2001 and 96.17 per cent in MY 2002).825 2. Brazil’s (Simplified) Allocation Methodology 12. In this section of Annex A, Brazil provides an update of its calculations in Section 9 of its 28 January 2004 Comments and Requests Regarding US Data taking into account the revised summary data produced by the United States on 28 January 2004. Brazil has discussed its methodology in considerable detail in its 20 January 2004 response to Question 258826 and has applied it in Section 9 of its 28 January 2004 Comments and Requests Regarding US Data. Brazil recalls that its methodology considers as support to a particular crop all crop contract payments for that crop that are made for base acres actually planted to that crop. All remaining support is pooled and allocated as support to contract crops according to their share of total “overplanted” contract crop acreage on a farm. 13. While the revised US summary data provided on 28 January 2004 neither addresses the aggregation problems resulting from the particular manner in which the United States produced its summary data,827 nor the shortcomings in terms of soybean market loss assistance payments and peanut direct and counter-cyclical payments, the United States provides information on contract base of farms that plant upland cotton, but do not hold upland cotton base. To reflect this additional information, Brazil has updated its earlier calculations.828 14. In a first step, Brazil analyses farms that plant upland cotton and hold upland cotton base. By marketing year, the following four tables provide, first, by crop the total amount of contract payments received by farms that produce upland cotton and hold upland cotton base. Table 2.1
Table 2.2
Table 2.3
Table 2.4
15. The next four sets of calculations indicate the amount of base and planted acreage for each crop and the amount of crop contract payments allocated to each crop as well as the amount of contract payments available for allocation to other crops. They finally also indicate the amount of contract payments that constitute support to upland cotton on farms that plant upland cotton and hold upland cotton base.842 Table 2.5
16. Since planted acreage exceeds base acreage only for upland cotton, the entire amount of 1999 PFC payments available for allocation ($40,977,701.8) is allocated to upland cotton. Therefore the amount of PFC payments that constitute support to upland cotton on farms planting upland cotton and holding upland cotton base in MY 1999 is $556,288,375.2.847 Table 2.6
17. Since planted acreage exceeds base acreage only for upland cotton, the entire amount of 2000 PFC payments available for allocation ($37,483,895.1) is allocated to upland cotton. Therefore the amount of PFC payments that constitute support to upland cotton on farms planting upland cotton and holding upland cotton base in MY 2000 is $519,906,241.1.852 Table 2.7
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