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09/12/2002 - At a cost to consumers and taxpayers of more than $300 billion a year, agricultural support in OECD countries is inefficient. According to a new report, Agricultural Policies in OECD Countries: A Positive Reform Agenda, most current policies do a poor job of raising farm incomes. There is no evidence that the majority of programmes are efficient at protecting the environment, strengthening the viability of rural areas or contributing to food security.
Among the reforms advocated by the study is the need to tackle issues at source so that spending programmes are matched to specific objectives. This would be more beneficial than supporting agricultural production and would reduce distortions to international trade. In most cases it is more efficient to pay directly for a public service such as maintaining an agreeable countryside, and to charge those whose activities pollute the environment. Payments for a public service would contribute to raising farmers' incomes.
The report shows how countries can reap the benefits of more market-orientated policies and of open international trade while at the same time meeting a wide range of domestic objectives.
For further information,journalist are invited to contact Stephen Di Biasio in the Media Relations Division (tel. [33] 1 45 24 81 03).
See the document: Agricultural Policies in OECD Countries: a Positive Reform Agenda
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