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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25. Since for none of the non-upland cotton crops planted acreage exceeds base acreage, the entire amount of 2001 PFC payments available for allocation ($15,621,471.2900) is allocated to upland cotton.901


Table 2.17


MY 2002 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(Direct Payments)

Crop902

Contract Acres903

Planted Acres904

Subsidy Allocated905

Subsidy Available for Allocation906

Upland Cotton

0

518,837.0

$0

$0

Wheat

243,967.7

231,183.7

$4,090,616.8

$226,203.0

Oats

4,049.8

11,842.4

$3,229.3

$0.0

Rice

111,611.5

49,723.9

$2,362,433.6

$2,940,343.6

Corn

197,312.6

145,345.6

$3,362,408.3

$1,202,198.6

Sorghum

108,062.4

104,094.2

$3,607,650.6

$137,528.1

Barley

3,368.5

1,697.3

$15,388.8

$15,152.2

Soybeans

98,409.5

140,070.8

$762,407.0

$0.0

26. The total amount of MY 2002 direct payments that is available for allocation over crops whose planted acreage exceeds their base acreage is allocated as detailed in the following table:


Table 2.18


MY 2002 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(Direct Payments)

Crop

(Contract Acres907) – (Planted Acres908)

Share of Total Overplanted Base909

Total Subsidy Available for Allocation910

Additional Subsidy Allocated911

Upland Cotton

518,837.0

91.298 per cent

$4,521,425.4

$4,127,961.2

Oats

7,792.60

1.371 per cent

$4,521,425.4

$61,999.3

Soybeans

41,661.30

7,331 per cent

$4,521,425.4

$331,464.9

Total

568,290.90

100 per cent

$4,521,425.4

$4,521,425.4

27. The total amount of 2002 direct payments that constitute support to upland cotton on farms that produce upland cotton but do not hold upland cotton base is therefore $4,127,961.2.912


Table 2.19


MY 2002 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(CCP Payments)

Crop913

Contract Acres914

Planted Acres915

Subsidy Allocated916

Subsidy Available for Allocation917

Upland Cotton

0

518,837.0

$0

$0

Wheat

243,967.7

231,183.7

$0

$0

Oats

4,049.8

11,842.4

$0

$0

Rice

111,611.5

49,723.9

$1,666,844.9

$2,074,596.5

Corn

197,312.6

145,345.6

$0

$0

Sorghum

108,062.4

104,094.2

$0

$0

Barley

3,368.5

1,697.3

$0

$0

Soybeans

98,409.5

140,070.8

$0

$0

28. The total amount of MY 2002 counter-cyclical payments that is available for allocation over crops whose planted acreage exceeds their base acreage is allocated as detailed in the following table:


Table 2.20

MY 2002 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(CCP Payments)

Crop

(Contract Acres918) – (Planted Acres919)

Share of Total Overplanted Base920

Total Subsidy Available for Allocation921

Additional Subsidy Allocated922

Upland Cotton

518,837.0

91.298 per cent

$2,074,596.5

$1,894,060.6

Oats

7,792.60

1.371 per cent

$2,074,596.5

$28,447.6

Soybeans

41,661.30

7,331 per cent

$2,074,596.5

$152,088.3

Total

568,290.90

100 per cent

$2,074,596.5

$2,074,596.5

29. The amount of 2002 counter-cyclical payments that constitute support to upland cotton on farms that produce upland cotton but do not hold upland cotton base is therefore $1,894,060.6.923


30. In a third step, Brazil presents the total amount of contract payments received by farms that produce upland cotton that constitute support to upland cotton, whether or not these farms actually hold upland cotton base.924
Table 2.21


Total_Contract_Payment_Support_to_Upland_Cotton_on_Farms_Producing__Upland_Cotton_and_Holding_Upland_Cotton_Base'>Total Contract Payment Support to Upland Cotton on Farms Producing

Upland Cotton and Holding Upland Cotton Base

MY

PFC Payments

MLA Payments925

Direct Payments

CCP Payments

1999

$574,488,456.1

$571,690,622.7

-

-

2000

$538,079,545.3

$572,803,412.3

-

-

2001

$428,007,676.4

$591,165,829.7

-

-

2002

-

-

$450,924,339.1

$988,252,054.4

31. 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 2.22


Results of Brazil’s 14/16th Methodology

MY

PFC Payments

MLA Payments

Direct Payments

CCP Payments

1999

$547,800,000

$545,100,000

-

-

2000

$541,300,000

$576,200,000

-

-

2001

$453,000,000

$625,700,000

-

-

2002

-

-

$454,500,000

$935,600,000

32. As the Panel can readily see, both methodologies produce quite similar results.


3. Annex IV-Type Methodology Over Contract Crop Values Only
33. The calculations in this section apply an Annex IV-type allocation methodology to all contract payments received by farms that produce upland cotton, whether or not those farms hold upland cotton base. The approach is the same as in Section 10 of Brazil’s 28 January Comments and Requests Regarding US Data. – with the sole exception that the allocation is performed only over the value of programme crops produced on the farm, rather than over the entire value of the upland cotton farms (crop) production.926
34. As a first step, Brazil tabulates the total amount of contract payments received by farms that produce upland cotton, as calculated in Section 2 above. The following four tables show the results of this calculation indicating the amount of contract payments by contract payment crop.
Table 3.1


Total Amount of MY 1999 PFC Payments

Crop

Farms Holding Upland Cotton Base927

Farms Not Holding Upland Cotton Base928

Total PFC Payment929

Upland Cotton

$515,310,673.4

$0.0

$515,310,673.4

Wheat

$60,937,993.5

$12,757,281.7

$73,695,275.2

Oats

$127,125.3

$24,042.2

$151,167.5

Rice

$22,236,895.3

$7,416,873.0

$29,653,768.3

Corn

$58,725,821.8

$12,578,191.6

$71,304,013.4

Sorghum

$37,045,070.6

$5,280,360.2

$42,325,430.8

Barley

$1,665,180.6

$149,468.5

$1,814,649.1

Total

$696,048,760.5

$38,206,217.2

$734,254,977.7

Table 3.2




Total Amount of MY 2000 PFC Payments

Crop

Farms Holding Upland Cotton Base930

Farms Not Holding Upland Cotton Base931

Total PFC Payment932

Upland Cotton

$482,422,346.0

$0.0

$482,422,346.0

Wheat

$57,173,890.3

$13,079,947.6

$70,253,837.9

Oats

$120,614.9

$26,657.3

$147,272.2

Rice

$21,659,930.5

$7,475,702.2

$29,135,632.7

Corn

$53,500,125.0

$12,172,677.3

$65,672,802.3

Sorghum

$34,308,292.7

$5,171,321.2

$39,479,613.9

Barley

$1,608,482.3

$140,105.8

$1,748,588.1

Total

$650,793,681.7

$38,066,411.4

$688,860,093.1

Table 3.3




Total Amount of MY 2001 PFC Payments

Crop

Farms Holding Upland Cotton Base933

Farms Not Holding Upland Cotton Base934

Total PFC Payment935

Upland Cotton

$387,916,892.8

$0.0

$387,916,892.8

Wheat

$43,954,579.8

$10,630,995.6

$54,585,575.4

Oats

$90,119.4

$20,740.9

$110,860.3

Rice

$18,652,941.0

$7,384,683.4

$26,037,624.4

Corn

$41,612,594.9

$10,421,947.8

$52,034,542.7

Sorghum

$26,876,495.9

$4,532,278.1

$31,408,774.0

Barley

$1,146,373.9

$120,188.8

$1,266,562.7

Total

$520,249,997.7

$33,110,834.6

$553,360,832.3


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