1. Figure 1 Developing countries Developed countries

2. Figure 2 Developing countries Developed countries

3. Agriculture GDP Green box as % of Agriculture GDP High (over US$ 10 billion) High (over 10%) Low (below US$ 10 billion) Low (under 10%) India ($128; 2%) Brazil ($ 56; 4%) Indonesia ($ 36; 0.5%) Pakistan ($ 20, 1.7%) Mexico ($ 24; 8%) Australia ($ 20; 6%) Thailand ($ 16; 9%) Argentina ($ 15; 1.7%) Philippines ($ 13; 2%) Colombia ($ 12; 1.5%) Malaysia ($11; 2%) China ($ 250; 14%) EU-15 ($ 205; 12%) US ($ 125; 38%) Japan ($ 76; 30%) South Korea ($ 22/ 22%) South Africa ($ 6.4; 11%) Switzerland ($ 4.4; 49%) Venezuela ($ 4.4; 15%) Norway ($ 3.6; 16%) Israel ($ 1.9; 17%) Zambia ($ 1.2; 16%) Jordan ($ 0.3; 12%) Trinidad and Tobago ($ 0.1; 16%) Morocco ($ 7.8; 5%) New Zealand ($ 7.3; 3%) Chile ($ 5; 4%) Peru ($ 4.7; 3%) Kenya ($ 4.1; 2%) Tunisia ($ 3.3; 2%) Dominican Republic ($ 2.0; 2%) Uruguay ($ 1.5; 3%) Costa Rica ($ 1.5; 2%) Paraguay ($ 1.4; 1.5%) Honduras ($ 0.9; 1.1%) Nicaragua ($ 0.8; 1.2%) Jamaica ($ 0.5; 1.3%) Figure 3

4. Figure 4

5. Figure 5

6. Figure 6

7. Figure 7 Wheat Net revenue = $1 from the market + $ 0.2 in the form of subsidy, per ha planted Maize Net revenue = $ 0.2 from the market + $1 in the form of subsidy, per ha to produce Total market net revenue = $ 13 Total subsidy revenue = $ 17 Before decoupling After decoupling Wheat Net revenue = $1 from the market Maize Net revenue = $ 0.2 from the market per ha to produce Total market net revenue = $ 21 Total subsidy revenue = $ 17 10 ha 15 ha 20 ha 5 ha If subsidy is updated = $ 9 $ 30 $ 38

8. Policy will not be updated Policy will be updated Policy was not updated Policy was updated What actually happened What producer believes SR and LR  same production SR  market-oriented (oversubsidized) LR  less subsidy but the producer could back to same production (expectations) SR  same production LR  market-oriented (oversubsidized) SR and LR  market- oriented (oversubsidized) 1 2 3 4 Figure 8