The Organisation for Economic Co-operation and Development’s (OECD) latest Agricultural Policy: Monitoring and Evaluation 2012 report revealed that government support fell to 19% of total farm receipts in 2011, with support to producers standing at just $252bn (€182bn). The recent decline in producer support was in many countries driven by developments on international markets, rather than by explicit policy changes. However, the report explains that there remain large differences in support levels among countries.
OECD countries are moving at different speeds away from supporting farmers through policies that raise domestic prices. “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.”
While most countries are in consultations about new agricultural policy frameworks, no major changes have been implemented in 2011. Specific proposals for the new Farm Bill in the United States and for the Common Agricultural Policy post-2013 in the European Union are under active consideration.
The citation is as follows: OECD (2012), Agricultural Policy Monitoring and Evaluation 2012: OECD Countries, OECD Publishing. http://dx.doi.org/10.1787/agr_pol-2012-en
To read the full OECD report, click here.
To access the OECD press release, click here.