"At the global level, more than one-ninth of gross farm receipts are the product of public policies. In some countries, it is even half", criticises the Organisation for Economic Co-operation and Development (OECD) in its report published on Tuesday 30 June entitled 'Agricultural Policy Monitoring and Evaluation 2020'.
Overall support to producers in the 54 countries covered by this report accounted for 12.5% of gross agricultural receipts in 2017-2019 (or US$446 billion), compared to 18.4% in 2000-2002. "Half of this support has come from government measures that keep domestic prices above international levels. These measures harm consumers, especially the poorest among them, widen the income gap between small and large farms and make the food industry as a whole less competitive", the OECD highlights.
The most distorting forms of support (price support, payments based on production or on unfettered use of inputs...) have decreased, but still accounted for 69% of gross transfers to production, compared to 73% in 2000-2002.
19% in the EU. In the EU, the share of producer support in gross farm receipts has stabilised at around 19% since 2010, or $102 billion, while in the US it accounted for 11% of gross farm receipts in 2017-2019 ($42 billion). In Japan, support to producers reached 41% of gross agricultural income, while in Brazil, it went from 7.6% to 1.7% between 2000-2002 and 2017-2019.
Most countries spend less on improving the long-term performance of the agricultural sector (research and development, infrastructure, biosafety), which amounts to barely $106 billion, regrets the OECD, which considers these measures to be much more useful. On the Covid-19 crisis, the organisation notes that many countries have worked to facilitate trade to preserve supply chains, but that "some have imposed temporary trade restrictions that may jeopardise supply in the short term, but also in the longer term".
The report is available here: https://bit.ly/2ZmG92S