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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18. The total amount of PFC payment that is available for allocation over crops whose planted acreage exceeds their base acreage is allocated as detailed in the following table:


Table 2.8


MY 2001 Farms Producing Upland Cotton And Holding Upland Cotton Base

(PFC Payment Allocation II)

Crop

(Contract Acres857) – (Planted Acres858)

Share of Total Overplanted Base859

Total Subsidy Available for Allocation860

Additional Subsidy Allocated861

Upland Cotton

1,732,453.0

77.85 per cent

$31,433,241.7

$24,469,312.4

Oats

50,204.1

2.26 per cent

$31,433,241.7

$709,086.9

Sorghum

442,849.4

19.89 per cent

$31,433,241.7

$6,254,842.3

Total

2,225,506.5

100 per cent

$31,433,241.7

$31,433,241.7

19. The amount of PFC payments that constitute support to upland cotton on farms planting upland cotton and holding upland cotton base in MY 2001 is $412,386,205.2.862,863


20. Since in MY 2002, the amount of upland cotton acreage (13,022,668.9 acres864) on farms that planted upland cotton and held upland cotton base was below the amount of upland cotton base (13,818,215.2865), no additional contract payments would be allocated. Instead, the amount of support to upland cotton is calculated by multiplying the amount of upland cotton direct and counter-cyclical payments on these farms by 0.94243.866 The table below shows the amount of payments allocated as support to upland cotton.
Table 2.9


MY 2002 Allocated Upland Cotton Direct and Counter-Cyclical Payments




Total Payments867

Share To Be Allocated868

Payments Allocated869

Direct Payments

$474,089,723.3

94.243 per cent

$446,796,377.9

CCP Payments

$1,046,611,412.8

94.243 per cent

$986,357,993,8

21. In a second step, Brazil analyses farms that plant upland cotton but do not 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 2.10


MY 1999 PFC Payments by Crop for Farms Producing Upland Cotton But Not

Holding Upland Cotton Base

Crop

Programme

Payment Units870

Payment Rate871

(US$ per unit)



Subsidy Amount872

Upland Cotton

PFC Payments

0

0.0788

$0

Wheat

PFC Payments

20,027,129.9

0.6370

$12,757,281.7

Oats

PFC Payments

801,406.4

0.0300

$24,042.2

Rice

PFC Payments

579,443,200.3

0.0128

$7,416,873.0

Corn

PFC Payments

34,650,665.6

0.3630

$12,578,191.6

Sorghum

PFC Payments

12,138,759.1

0.4350

$5,280,360.2

Barley

PFC Payments

551,544.3

0.2710

$149,468.5

Table 2.11




MY 2000 PFC Payments by Crop for Farms Producing Upland Cotton But Not

Holding Upland Cotton Base

Crop

Programme

Payment Units873

Payment Rate874

(US$ per unit)



Subsidy Amount875

Upland Cotton

PFC Payments

0

0.0733

$0

Wheat

PFC Payments

22,244,808.9

0.5880

$13,079,947.6

Oats

PFC Payments

952,045.1

0.0280

$26,657.3

Rice

PFC Payments

633,534,085.0

0.0118

$7,475,702.2

Corn

PFC Payments

36,445,141.6

0.3340

$12,172,677.3

Sorghum

PFC Payments

12,928,302.9

0.4000

$5,171,321.2

Barley

PFC Payments

558,190.5

0.2510

$140,105.8

Table 2.12




MY 2001 PFC Payments by Crop for Farms Producing Upland Cotton But Not

Holding Upland Cotton Base

Crop

Programme

Payment Units876

Payment Rate877

(US$ per unit)



Subsidy Amount878

Upland Cotton

PFC Payments

0

0.0599

$0

Wheat

PFC Payments

22,428,260.7

0.4740

$10,630,995.6

Oats

PFC Payments

942,768.1

0.0220

$20,740.9

Rice

PFC Payments

777,335,099.0

0.0095

$7,384,683.4

Corn

PFC Payments

38,743,300.2

0.2690

$10,421,947.8

Sorghum

PFC Payments

13,988,512.5

0.3240

$4,532,278.1

Barley

PFC Payments

583,440.6

0.2060

$120,188.8

Table 2.13




MY 2002 Direct and Counter-Cyclical Payments by Crop for Farms Producing

Upland Cotton But Not Holding Upland Cotton Base

Crop879

Programme

Payment Units880

Payment Rate881

(US$ per unit)



Subsidy Amount882

Upland Cotton

DP Payments

0

0.0667

$0

CCP Payments

0

0.1373

$0

Wheat

DP Payments

8,301,576.6

0.5200

$4,316,819.8

CCP Payments

8,541,723.9

0.0000

$0.0

Oats

DP Payments

161,464.9

0.0200

$3,229.3

CCP Payments

164,737.2

0.0000

$0.0

Rice

DP Payments

495,586,654.0

0.0107

$5,302,777.2

CCP Payments

498,858,849.4

0.0075

$3,741,441.4

Corn

DP Payments

16,302,167.4

0.2800

$4,564,606.9

CCP Payments

18,440,044.0

0.0000

$0.0

Sorghum

DP Payments

5,944,728.1

0.6300

$3,745,178.7

CCP Payments

5,882,846.2

0.0000

$0.0

Barley

DP Payments

127,254.2

0.2400

$30,541.0

CCP Payments

129,400.5

0.0000

$0.0

Soybeans

DP Payments

1,732,743.1

0.4400

$762,407.0

CCP Payments

1,855,963.7

0.0000

$0.0

22. 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 further 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 but do not hold upland cotton base.883


Table 2.14


MY 1999 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(PFC Payments)

Crop

Contract Acres884

Planted Acres885

Subsidy Allocated886

Subsidy Available for Allocation887

Upland Cotton

0

1,032,580.8

$0

$0

Wheat

664,033.9

377,929.2

$7,260,697.5

$5,496,584.2

Oats

20,442.4

12,284.9

$14,448.2

$9,594.0

Rice

133,161.8

74,642.6

$4,157,458.7

$3,259,414.3

Corn

495,800.2

205,429.0

$5,211,626.2

$7,366,565.4

Sorghum

224,604.4

141,533.7

$3,327,401.1

$1,952,959.1

Barley

13,086.9

3,021.1

$34,504.7

$114,963.8

23. Since for none of the non-upland cotton crops planted acreage exceeds base acreage, the entire amount of 1999 PFC payments available for allocation ($18,200,080.9888) is allocated to upland cotton.889


Table 2.15


MY 2000 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(PFC Payments)

Crop

Contract Acres890

Planted Acres891

Subsidy Allocated892

Subsidy Available for Allocation893

Upland Cotton

0

1,217,550.3

$0

$0

Wheat

749,812.2

429,019.3

$7,483,940.6

$5,596,007.0

Oats

25,096.0

19,731.5

$20,959.1

$5,698.2

Rice

147,118.7

70,088.3

$3,561,472.9

$3,914,229.3

Corn

523,505.2

231,096.1

$5,373,505.8

$6,799,171.5

Sorghum

244,894.8

162,155.4

$3,424,154.6

$1,747,166.6

Barley

13,533.9

2,808.5

$29,074.2

$111,031.6

24. Since for none of the non-upland cotton crops planted acreage exceeds base acreage, the entire amount of 2000 PFC payments available for allocation ($18,173,304.2894) is allocated to upland cotton.895


Table 2.16


MY 2001 Farms Producing Upland Cotton But Not Holding Upland Cotton Base

(PFC Payments)

Crop

Contract Acres896

Planted Acres897

Subsidy Allocated898

Subsidy Available for Allocation899

Upland Cotton

0

1,344,982.1

$0

$0

Wheat

716,566.2

393,648.9

$5,840,185.8

$4,790,809.8

Oats

23,851.4

32,464.5

$28,230.8

-$7,489.9

Rice

182,597.4

105,932.1

$4,284,152.0

$3,100,531.4

Corn

569,027.1

228,127.0

$4,178,232.8

$6,243,715.0

Sorghum

264,349.3

182,763.6

$3,133,488.4

$1,398,789.7

Barley

13,343.0

2,783.6

$25,073.6

$95,115.2


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