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Explicit and Implicit Subsidies for Swiss Farmers

Summary:
In the NZZ, Heidi Gmür discusses some of the many forms of government support for agricultural producers in Switzerland. She lists: Direct payments: CHF 2.8 billion for 53’000 farms in 2016 (roughly CHF 50 thousand per farm). Tariffs and other protectionist measures: According to the OECD, the value for farmers of these measures amounts to CHF 2 billion annually, while the value for the country is negative (CHF -0.5 billion). Multiple tax breaks: Lower capital gains tax on land sales; no value added tax on sale of produce; lower tax on notional rental value; lower effective tax on gas consumption.

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In the NZZHeidi Gmür discusses some of the many forms of government support for agricultural producers in Switzerland. She lists:

  • Direct payments: CHF 2.8 billion for 53’000 farms in 2016 (roughly CHF 50 thousand per farm).
  • Tariffs and other protectionist measures: According to the OECD, the value for farmers of these measures amounts to CHF 2 billion annually, while the value for the country is negative (CHF -0.5 billion).
  • Multiple tax breaks: Lower capital gains tax on land sales; no value added tax on sale of produce; lower tax on notional rental value; lower effective tax on gas consumption.
Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

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