Support to agriculture has reached record levels

Total support to agriculture reached a record high of USD 851 billion per year in 2020-22 across OECD countries and major emerging economies: USD 518 billion per year comes in the form of budgetary support from taxpayers, with the remaining USD 333 billion per year being transferred by consumers through policies lifting domestic prices above reference prices.

This total compares to USD 696 billion per year in pre-pandemic 2017-19, with significant growth in support to both consumers and producers. The increase comes in a context of successive shocks, with Russia’s war of aggression against Ukraine compounded by inflationary pressures and hitting just as the world recovered from the COVID-19 pandemic.

Despite a small decline in 2022, the 2020-22 average represents a historical high and an almost 2.5-fold increase compared to 2000-02, even if below the 3.6-fold growth in the value of agricultural production.

Support remains highly concentrated in a few large economies. China, now representing 36% of this total, has emerged as the country providing the most support, displacing large OECD economies which have historically held that role. India, the United States and the European Union, all large agricultural producers as well, now represent 15%, 14% and 13%, respectively.

Individual producers were the largest beneficiaries of agricultural support, receiving USD 630 billion per year in 2020-22. On average, transfers to individual producers represented 14% of gross farm receipts (GFR). Support varies substantially across countries, with some OECD countries providing their farmers with levels of support equivalent to over 40% of GFR, while the negative price support in a few emerging economies corresponded to 4% of GFR.

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