Total support to the agricultural sector across the 54 countries covered by this report averaged USD 842 billion per year during 2021-23. Transfers to the sector have declined in 2022 and 2023 relatively to their peak in 2021, but remain significantly above levels seen just before the COVID-19 pandemic.
Government support to agriculture
Governments provide support through a combination of payments to farmers, policies that affect the price of agricultural commodities, and other aids to the sector. These policies may have specific agricultural, food, social or environmental objectives which are monitored and evaluated by the OECD to help governments achieve their objectives while avoiding negative consequences.
Key messages
Farmers received support equal to about 9% of their revenue on average across the 54 countries covered in 2021-23. Norwegian farmers receive about half of their gross farm receipts (GFR) from government support, while, in India, policies lowering food prices have reduced farmers’ revenue by more than 15% of GFR.
The need to mitigate and adapt to climate change and the importance of innovation for sustainable productivity growth have come into sharp focus. However, the way support is offered has changed little in the last decade. For example, only 2.9% of support in 2021-23 aimed at supporting agricultural knowledge and innovation systems, and this share has been declining over time. Setting measurable objectives can help policy makers to focus their efforts, to benchmark progress, and to adjust support to match critical needs.
Context
The centre of gravity of agricultural support has shifted towards some emerging economies
China (37% of the total) and India (14%) now provide high support to farmers as they push for higher production levels and self-sufficiency. Elsewhere, high global food prices and policy reforms have helped to reduce support levels, notably where policies and payouts depend on the price farmers face in the market. The United States and the European Union, which in the early 2000s together provided almost half the global support, now represent 15% and 13% of the global total, respectively.
Governments have many actions at their disposal to support agricultural productivity sustainable
While priorities and exact definitions differ, governments have been taking steps to promote sustainable productivity growth by developing strategies and frameworks, investing in research and development (R&D), institutions and agricultural knowledge and innovation systems, and by providing incentives to producers to develop and adopt new production methods.
