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OECD- Agricultural Policy Monitoring and Evaluation 2024

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Agriculture faces challenges from geopolitical conflicts, climate change, and market pressures, necessitating sustainable policy reforms to enhance productivity and address environmental and social needs. This OECD report- “Agricultural Policy Monitoring and Evaluation 2024” highlights that while agricultural support averaged $842 billion annually from 2021–2023, it has declined since its 2021 peak. Persistent market distortions and limited investments in research, innovation, and environmental initiatives threaten sustainable productivity growth.

The report emphasizes inequities in support distribution, with China, the United States, India, and the European Union accounting for nearly 80% of total support, while countries like Brazil contribute less despite significant output. Agricultural support relative to producer receipts and consumer expenditures has declined since 2000, with disparities across countries, as some impose implicit taxes while others reduce public investments.

A transition to environmentally beneficial policies, focused on sustainable farming practices, climate-resilient infrastructure, and research and development (R&D), is essential. Aligning agricultural policies with food security, economic efficiency, and sustainability goals requires innovation, reforming harmful subsidies, and balancing trade-offs. The report calls for a comprehensive approach to achieve these outcomes.

Policy Agenda for Sustainable Productivity Growth

  • Set clear objectives for sustainable productivity growth
  • Address harmful measures and reorient support
  • Link producer support to sustainable practices
  • Align innovation with productivity and sustainability goals
  • Eliminate highly distorting support measures
  • Strengthen risk management systems
  • Reduce inefficient income support transfers
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