Investments in vital services are lagging behind other forms of support

Investments in innovation, education, biosecurity and infrastructure help farmers improve productivity, facilitate climate change adaptation, reduce greenhouse gas (GHG) emissions, and prepare for a resilient and sustainable future. Such investments by governments are measured as the “General Services Support Estimate” which brings together all public expenditures that broadly benefit the agricultural sector. The amount of support provided in the form of general services is small and declining in relative terms. These expenditures are currently about 12.5% of all support, equal to 2.5% of the value of agricultural production. This is down from 16% of support and 4.6% of value of production in 2000-02.

Composition of the General Services Support Estimate
2020-22

Source: OECD (2023), Agricultural Policy Monitoring and Evaluation 2023.

Investments in agricultural innovation systems (AIS) are especially important to help farmers adapt to the effects of climate change. About 23% of expenditures on general services are on AIS, and reorienting support towards building a stronger AIS is an important way for governments to increase the value and benefit of their support expenditures. Emerging economies in particular should increase their investments in AIS; they spend less than half as much on this as a share of agricultural value of production than do OECD countries.

Support for agricultural R&D and innovation
2020-22

Source: OECD (2023), Agricultural Policy Monitoring and Evaluation 2023.

Read more:

• Support to agriculture has reached record levels
• Support policies largely hinder climate change adaptation 
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