Agricultural producer protection is the ratio between the average price received by producers (measured at the farm gate), including net payments per unit of current output, and the border price (measured at the farm gate).
This indicator reflects the level of price distortions. For instance, a coefficient of 1.10 suggests that farmers, overall, received prices that were 10% above international market levels.
This indicator is measured as the Producer Nominal Protection Coefficient, expressed as the ratio of farm price to border reference price.