OECD Report Highlights Need for Sustainable Agricultural Policies Amid Global Challenges

OECD REPORT HIGHLIGHTS NEED FOR SUSTAINABLE AGRICULTURAL POLICIES AMID GLOBAL CHALLENGES

by soonhokim | March 24, 2025

The OECD's "Agricultural Policy Monitoring and Evaluation 2024" report highlights several key points regarding global agricultural challenges and policy recommendations. The report emphasizes the impact of geopolitical conflicts, climate change, and export restrictions on agricultural markets, which necessitate both reactive and proactive policy measures. Between 2021 and 2023, the agricultural sector received an average of USD 842 billion annually in support across 54 countries. Although this support has decreased from its peak in 2021, it remains significantly higher than pre-pandemic levels. However, the allocation of this support raises concerns, with only 12.6% dedicated to essential services such as innovation, biosecurity, and infrastructure. This figure is notably lower than the 16% observed at the beginning of the 21st century, highlighting a need for reorientation.

What governments, farmers and others are doing for sustainable productivity growth

diagramSource: OECD (2024), OECD Agricultural Policy Monitoring and Evaluation: Innovation for Sustainable Productivity Growth

The report emphasizes the importance of innovation in driving sustainable productivity growth. Governments are encouraged to develop clear strategies, invest in research and development, and provide incentives for adopting new production methods. These efforts are crucial for producing more with less while minimizing environmental impact. To achieve these goals, the OECD recommends several policy adjustments. Governments should set clear objectives for sustainable productivity growth and invest in measuring results to ensure that sustainability outcomes are met. Additionally, there is a call to reorient agricultural support towards environmentally sustainable practices and increase the share of support linked to such practices. Phasing out the most distorting forms of support and ensuring effective risk management systems are also highlighted as essential steps.

The report serves as a reminder of the complex interplay between agricultural policies and global challenges. By prioritizing sustainable productivity growth and rethinking support mechanisms, governments can better navigate the uncertainties of the current global landscape and ensure a resilient agricultural sector for the future.

Explore the full report here.

 

Photo credit: World Bank