Market distorting ag support policies continue to be common, and efforts to reform support policies have stagnated over the past decade, the Organization for Economic Cooperation and Development (OECD) said in a new report.
The report covers the 2016-2018 period and looks at OECD members, along with the entire European Union (EU) and “key emerging economies” including Brazil, China, India and Argentina.
Ag support across the 53 countries analyzed averaged $705 billion per year, with around three-quarters of that – $528 billion – from direct transfers to producers, OECD said.
Nearly 70% of ag transfers to producers are measures that distort farm business decisions particularly strongly,” OECD said.
Looking at the U.S. specifically, the report noted producer support stood at around 10% of gross farm receipts between 2016-2018, and remain “consistently below the OECD average.”
Producer support stood at 21% of gross farm receipts in 2000-2002, and declined by more than half in the intervening years. With the exception of milk, sugar and lamb, which have market price support policies, producer prices for most other U.S. ag commodities align closely with world market prices, the report noted.
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