Government support to agriculture in OECD countries fell to 18%

Government support to agriculture in OECD countries fell to 18% of total farm receipts in 2010, a record low linked to high commodity prices, according to this report.

Support to producers stood at $227 billion (EUR 172 billion) in OECD countries in 2010. Most government support is still given in ways that distort production and trade while doing relatively little to improve productivity and competitiveness, ensure sustainable resource use or help farmers cope with risk.

• New Zealand has the lowest level of government support to agriculture in the OECD, at just 1% of farm income. Australia (3%), Chile (4%) and the United States (4%) are also well below the OECD average.
• The European Union has reduced its level of support to 22% of farm income, but remains above the OECD average.
• Support to farmers remains relatively high in Korea (47%), Iceland (48%), Japan (49%), Switzerland (56%) and Norway (60%).
• Brazil, South Africa and Ukraine generally support agriculture at levels well below the OECD average, while support in China is approaching the OECD average. In Russia, farm support now exceeds the OECD average.