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Agriculture : Support to agriculture at historic lows, says OECD

Government support to agriculture in OECD countries fell to 19% of total farm receipts in 2011, a record low driven by developments in international commodity markets, rather than by explicit policy changes, according to the latest version of an annual OECD report.

Support to producers stood at $252 billion (EUR 182 billion) in OECD countries in 2011, confirming a longstanding trend toward falling farm support. While Agricultural Policy: Monitoring and Evaluation 2012 points to a generalised move away from support directly linked to production, it finds that support which distorts production and trade still represents about half of the total.

“The move toward lower farm support is a welcome trend, but we still see the need for better targeting and more cost-effective farm policy,” said OECD Trade and Agriculture Director Ken Ash.”Farm support should be more closely directed at increasing agricultural productivity and competitiveness. Governments should also be doing more to address environmental issues, ensure sustainable resource use and help farmers better cope with risk.”

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Crédits: AK-Project