China, India, the United States, and the European Union represent 36%, 15%, 14%, and 13% of the total support provided, respectively.
From 2020 to 2022, the 54 member countries of the Organization for Economic Cooperation and Development (OECD) received $851 billion in support for agriculture. The number has reached record levels as governments seek to protect consumers and producers from global crises and high inflation.
Less than half of this government support covers measures with the greatest potential for market distortions, such as border tariffs and production-based subsidy payments.
According to the OECD’s Agricultural Policy Monitoring and Evaluation 2023 report, $851 billion represents an almost 2.5-fold increase compared to two decades ago, although it remains far behind overall production growth.
Support remains highly concentrated in a few major producing economies: China, India, the United States, and the European Union, accounting for 36%, 15%, 14%, and 13% of the total support provided, respectively.
Individual producers received $630 billion annually in positive support in 2020–22, up from $525 billion before the coronavirus or SARS-CoV-2 pandemic (2017–2019).
More than half ($333 billion a year) is paid by consumers through border tariffs and other policies that raise domestic prices above reference prices.
The rest ($297 billion per year) is paid by taxpayers through budget transfers, such as subsidies for fertilizer and electricity use, as well as payments based on production or land area.
The report shows that although the governments of the 54 countries covered have adopted nearly 600 measures for adapting to climate change in agriculture, many actions are still needed to go beyond planning and immediate action. implementation progress, monitoring, and evaluation of adaptation measures.
Because support for general services, such as innovation, biosecurity, or infrastructure, has decreased to 12.5% of total support in 2020-22, compared to 16% two decades ago passed. The OECD notes that these services are key to helping producers adapt to new and more adverse climate conditions, where extreme weather events are more common, and support sustainable productivity growth.
For the agency, policy approaches for more sustainable agriculture must balance efforts to support short-term recovery from climate and other shocks with medium-term incremental changes. -or to changing conditions, as well as long-term changes.
OECD Secretary-General Mathias Corman said the report provides transparency on the nature and extent of government support provided to the agricultural sector, measuring subsidies, tariffs, and the impact of other forms of support that distort production and the market.
Corman emphasized that they have established a six-point policy agenda to improve the resilience of agriculture and food systems while providing adequate, affordable, safe, and nutritious food for the world’s growing population.