Agricultural Policy Monitoring and Evaluation 2025

8. Chile

Main findings

Support to agriculture

Chile’s Producer Support Estimate (PSE) amounted to 3% of gross farm receipts in 2022-24, down from 7.4% in 2000-02 and well below the OECD average (13.2%). Tariff reforms in the 1990s led to the near elimination of Market Price Support (MPS) such that domestic producer prices are aligned with world prices, with an NPC equal to 1. Single Commodity Transfers (SCT) are small and limited to sugar, for which they amount to 3.4% of its gross farm receipts.

PSE is mostly comprised of budgetary support to producers and is generally targeted at smaller farmers. This support includes payments for on-farm fixed capital formation, on-farm services and variable input use.

Support for general services (General Service Support Estimate, GSSE) represented an average of 3.32% of the agricultural value of production in 2022-24, up from 2.1% during 2000-02 but slightly below the OECD average. This support focuses on off-farm irrigation infrastructure, inspection and control, and the agricultural knowledge and innovation system.

Total agricultural support represented 0.3% of Gross Domestic Product (GDP) in 2022‑24, lower than the OECD average (0.5%), and half of the one observed in 2000-02 (0.6%).

Key recent policy changes

In 2024, Chile developed the National Strategy for the Prevention and Reduction of Food Loss and Waste. A Clean Production Agreement was established in 2024 between the food processing industry association AB Chile, the Sustainability and Climate Change Agency (ASCC), and the Agricultural Policies and Studies (ODEPA). This agreement is the first to tackle food loss and waste management across the entire food and beverage sector.

Options for the legal use of greywater for agriculture irrigation were expanded in 2023. In this context, in 2024, a strategy to promote the safe reuse of greywater in agriculture was developed based on a risk assessment led by the Chilean Agency for Food Safety and Quality (ACHIPIA). The assessment included crops for which greywater irrigation is currently restricted, such as those consumed raw.

In 2024, the Agricultural Development Institute (INDAP) and several ministries developed the National Rural Youth Policy. This initiative, built through participatory dialogues with social actors, academia, international organisations, and public institutions. The policy addresses key issues such as access to technology, quality education, political participation, and equal opportunities for personal and professional growth. The policy provides a comprehensive characterisation of rural youth and outlines guidelines for state implementation and governance to tackle major challenges in rural areas.

In 2024, the Chilean Agency for Food Quality and Safety (ACHIPIA) launched a South-South co‑operation project with Mexico to support small-scale, female-led food enterprises in producing safer food. ACHIPIA conducted studies on pesticide residue regulations and the safe use of residual grey water in agriculture to tackle water scarcity. It also completed a study on Antimicrobial Resistance (AMR) surveillance.

In 2024, the implementation plan of the National Strategy of Sovereignty for Food Security was officially launched. The plan consists of 84 measures grouped into four strategic pillars: sustainable production, market diversification, innovation and transformation, and the promotion of healthy diets.

Assessment and recommendations

• All of Chile’s RTAs include an article on sustainable agriculture under the trade and environment chapter, while a Sustainable Food Systems (SFS) chapter is found in one RTA. Chile also has several RTAs containing provisions on domestic environmental laws and policies with explicit linkages to agriculture. The country could make use of these environmental provisions under its RTAs alongside domestic efforts to transition to a more sustainable agriculture, through the adoption of low-emission technologies and adaptation practices.

• Payments to farmers are well-tailored and targeted to small-scale farmers and vulnerable populations, such as indigenous and female farmers. These payments should be assessed to ensure they continue to be effective in improving competitiveness; this can be done by following the policy development cycle, where the issues of policy concern are identified, the formulation of measurable policy objectives is defined alongside their evaluation, which in turn leads to new policy instrument proposals. Furthermore, these payments could be conditioned not only on good agricultural practices but also on practices that protect the environment.

• Chile should consider scaling up public investments that help the sector become more sustainable, productive, and resilient, for products directed to domestic and international markets. Additional and targeted investments in extension services, innovations favouring sustainable productivity growth, and climate-smart agriculture should be considered. Investments in irrigation systems must account for the changing climate and use principles of sound water management to ensure their sustainability.

• To ensure a more efficient use of public resources allocated to the sector, better co‑ordination across ministries and agencies that support the sector or rural populations is required. Improved co‑ordination, communication, and accountability are also needed between regional and national governments to avoid duplicating efforts. This could help serve farmers’ needs more effectively, particularly concerning adaptation to climate change, water management, and environmental protection.

• Chile’s National Adaptation Plan for agriculture, which includes measures to foster resilience in the sector, should more clearly identify and promote specific actions to facilitate the necessary transformation to more climate-resilient farming structures and production methods, in addition to shorter-term absorption of climate-related shocks.

Development of support to agriculture

Table 8.1. Chile: Estimates of support to agriculture

Million USD

	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	4 806	12 805	12 330	13 039	13 045
of which: share of MPS commodities (%)	72.86	89.70	83.16	90.72	95.22
Total value of consumption (at farm gate)	4 118	10 944	11 170	11 522	10 139
Producer Support Estimate (PSE)	369	394	376	450	356
Support based on commodity output	227	3	4	3	3
Market price support¹	227	3	4	3	3
Positive market price support	228	3	4	3	3
Negative market price support	-1	0	0	0	0
Payments based on output	0	0	0	0	0
Payments based on input use	140	321	316	346	301
Based on variable input use	21	77	76	86	69
with input constraints	0	0	0	0	0
Based on fixed capital formation	85	171	167	185	161
with input constraints	66	74	77	80	66
Based on on-farm services	35	73	74	75	70
with input constraints	7	32	34	31	30
Payments based on current A/An/R/I, production required	1	70	56	101	52
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	1	70	56	101	52
with input constraints	1	70	56	101	52
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	7.31	2.97	2.96	3.34	2.65
Producer NPC (coeff.)	1.05	1.00	1.00	1.00	1.00
Producer NAC (coeff.)	1.08	1.03	1.03	1.03	1.03
General Services Support Estimate (GSSE)	103	428	412	448	424
Agricultural knowledge and innovation system	22	68	63	74	67
Inspection and control	3	115	101	125	118
Development and maintenance of infrastructure	67	236	239	239	230
Marketing and promotion	10	9	9	9	8
Cost of public stockholding	0	0	0	0	0
Miscellaneous	1	0	0	0	0
Percentage GSSE (% of TSE)	22.00	52.16	52.31	49.85	54.40
Consumer Support Estimate (CSE)	-317	-20	-24	-20	-17
Transfers to producers from consumers	-226	-3	-4	-3	-3
Other transfers from consumers	-92	-17	-20	-17	-14
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	1	0	0	0	0
Percentage CSE (%)	-7.51	0.19	0.21	0.18	0.17
Consumer NPC (coeff.)	1.08	1.00	1.00	1.00	1.00
Consumer NAC (coeff.)	1.08	1.00	1.00	1.00	1.00
Total Support Estimate (TSE)	472	822	788	898	780
Transfers from consumers	318	20	24	20	17
Transfers from taxpayers	245	819	784	895	776
Budget revenues	-92	-17	-20	-17	-14
Percentage TSE (% of GDP)	0.63	0.26	0.26	0.27	0.24
Total Budgetary Support Estimate (TBSE)	244	819	784	895	776
Percentage TBSE (% of GDP)	0.33	0.25	0.26	0.27	0.24
GDP deflator (2000-02 = 100)	100	302	283	302	321
Exchange rate (national currency per USD)	621.15	885.65	873.31	840.07	943.57

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Chile are: wheat, maize, apples, grapes, sugar, tomatoes, milk, beef and veal, pig meat, poultry, eggs, blueberries, cherries and peaches.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

Chile’s agriculture policy prioritises food security and sovereignty, sustainability, water and climate emergency, competitiveness based on R&D and technology transfer, strengthening of family farming, rural development and well-being, and international cooperation and trade.

The Ministry of Agriculture (MINAGRI) is in charge of designing and implementing agricultural policies. The main agricultural policy objectives for the country are developing small-scale agriculture, improving sustainable productivity and competitiveness and conserving natural resources. As price support is not used, agricultural policies are based on budgetary transfers. About half of budgetary expenditures are direct payments to small-scale farmers, which are provided for purchasing inputs, capital formation, credit at preferential interest rates, improving degraded soils and on-farm irrigation investments. The other half of the budget is spent on general services to the agricultural sector, focusing on expanding and improving irrigation systems, access to land (land acquisition and redistribution), agricultural research and development, sanitary and phytosanitary services and inspection services (MINAGRI, 2025[1]).

The main programmes administered by the Institute of Agricultural Development (INDAP), the agency in charge of designing and implementing agricultural policies for small-scale farmers, are:

• Support for the development of poor areas, including subsidies for variable inputs such as seeds and fertilisers; subsidies for fixed capital assets such as equipment and machinery; and subsidies for on-farm services such as technical assistance.

• Territorial development programme for indigenous communities that provides subsidies for fixed capital formation in poor, marginalised areas.

• Incentives for the development of agricultural investment, including subsidies for variable inputs as well as for fixed capital formation on the farm.

• Support for the development of productive and entrepreneurial capacities, that provides on-farm services such as technical assistance.

• INDAP also provides credit to smallholders at preferential interest rates and has a crop insurance programme, which covers up to 50% of the premium.

The country also has a soil recovery programme in place to recover degraded soils to make them appropriate for agricultural practices, and the programme also has soil conservation practices. Around 70% of funds for this programme are administered by INDAP and addressed to smallholders, with the remainder administered by SAG (the animal and plant health agency) and given to medium and large-scale farmers.

Subsidies for irrigation are managed by the National Irrigation Commission (CNR). This has both on-farm and off-farm components. On-farm support, 40% of spending, provides subsidies to farmers to improve or install irrigation systems. The remaining 60% is used for community, regional or national investments. General services to the sector are dominated by investments in infrastructure, mainly for irrigation and related to land and water rights for indigenous communities. After infrastructure, inspection services, R&D and agricultural schools are important.

In its Nationally Determined Contribution (NDC), Chile committed to carbon neutrality by 2050 and takes a carbon budgeting approach, although no specific target has been defined for agriculture. The Long-Term Climate Strategy (LTCS) contains 9 objectives and 63 goals linked to the agricultural and forestry sector. These goals are related to capacity building, agricultural R&D, agricultural extension services, reduction of greenhouse gas (GHG) emissions, increasing carbon sequestration, and strengthening climate change governance (MINAGRI, 2025[1]).

Policies for trade and sustainability in agro-food markets

Several of Chile’s Free Trade Agreements (RTAs) include environment-related provisions (ERPs). These RTAs are with Argentina, Brazil, Ecuador, the European Union, India, Paraguay, the United Kingdom, and the United States (Frezal and Deuss, 2025[2]).

All of Chile’s RTAs include an article on sustainable agriculture under the trade and environment chapter, while a Sustainable Food Systems (SFS) chapter is found in the EU-Chile RTA (signed in 2023). In terms of provisions on domestic environmental laws and policies Chile has five RTAs that include these: 1) CHL-Argentina article on sustainable agriculture (paragraph 2) (in application since 2019); 2) CHL-Brazil article on sustainable agriculture (paragraph 2) (in application since 2022); 3) CHL-Ecuador article on sustainable agriculture (paragraph 2) (in application since 2022); 4) EU-CHL article on objective (signed in 2023); 4) CHL-Paraguay on sustainable agriculture and trade (paragraph 2) (in application since 2024) (Frezal and Deuss, 2025[2]).

Moreover, these RTAs have environmental co-operation provisions with explicit linkages to agriculture such as 1) USA-CHL annex on the improvement of agricultural practices (in application since 2004); 2) CHL-Argentina article on sustainable agriculture (paragraph 3) (in application since 2019); 3) CHL-India article on co-operation on environmental issues (in application since 2019); 4) UK-CHL article on co-operation on agriculture and rural sectors and sanitary and phytosanitary measures (in application since 2021); 5) CHL-Brazil article on sustainable agriculture (paragraph 3) (in application since 2022); 6) CHL-Ecuador article on sustainable agriculture (paragraph 3) and on trade and climate change (in application since 2022); 7) EU-CHL article on sustainability of food chain and reduction in food loss and waste (signed in 2023); 8) CHL-Paraguay article on sustainable agriculture and trade (paragraph 3) and on trade and climate change (in application since 2024) (Frezal and Deuss, 2025[2]).

For consultation and impact assessment, the European Commission has published ex-ante impact assessments and trade sustainability impact assessments of the EU-Chile RTA. These trade sustainability impact assessments cover topics where the agreement is most likely to have an impact on sustainability issues, or where the agreement opens opportunities for achieving non-trade policy objectives. It includes an environmental impact analysis of the RTA as well as a sectoral analysis, including, in some cases, agricultural sectors (Frezal and Deuss, 2025[2])

The Ministry of Agriculture has updated the Climate Adaptation Plan for Forestry and Agriculture (2024-2028) and developed its first Climate Mitigation Plan (2024-2028) to reduce greenhouse gas emissions in the agri-food sector, contributing to Chile’s net-zero target by 2050. The mitigation plan focuses on reducing methane emissions from livestock, promoting sustainable manure management, decreasing agricultural burning, and implementing low-emission rice cultivation. Meanwhile, adaptation efforts emphasise sustainable agricultural practices, improved water management, and enhanced monitoring of agro-meteorological risks. During 2024, Chile began preparing its next Nationally Determined Contribution (NDC) update, in line with its UNFCCC and Paris Agreement commitments. This is the first NDC update under Chile’s Climate Change Law, strengthening its climate policy framework.

In 2024, a new bill was developed and presented to the Chilean Congress to establish a sustainable soil management programme (SIGESS). This initiative encourages farmers to adopt practices that enhance and maintain the physical, chemical and biological properties of the country's agricultural soils, aligning with sustainable soil management principles. Since 2024, the bill has been under legislative debate, with its promulgation expected in the first half of 2025.

The National Landscape Restoration Plan (2021-2030) continues its mission to rehabilitate ecosystems and support local communities. As part of this initiative, Chile will host the 20x20 Initiative summit in April 2025, reinforcing regional efforts to restore 50 million ha by 2030. This Initiative supports the Bonn Challenge and the New York Declaration on Forests, global commitments that seek to restore 350 million ha of deforested and degraded land worldwide by 2030 (MINAGRI, 2025[1]).

In June 2024, the Agricultural Heritage Systems Network was launched in order to protect, rescue and promote traditional agricultural practices and knowledge. Additionally, the government created a Network of Women Seed Keepers in the Chiloé Archipelago, aimed at preserving and promoting traditional agricultural knowledge and seed diversity. Chile’s Conscious Origin programme (Chile Origen Consciente) has continued its work regarding public-private collaboration to promote sustainability in the agri-food sector. In 2024, dairy and pig farms were certified (MINAGRI, 2025[1]).

A modernisation process of the National Certification System for Organic Agricultural Products regulation began in December 2024, aimed at improving efficiency and updating its framework. By 2023, Chile had 364 021 certified hectares, primarily producing for export markets, notably the United States and the European Union.

Recent policy developments

Domestic policy developments in 2024-25

In May 2024, 25 priority measures from the implementation plan of the National Strategy of Sovereignty for Food Security were officially launched. These were developed through a co-ordinated inter-institutional effort. The comprehensive plan consists of 84 measures grouped into four strategic pillars: sustainable production, market diversification, innovation and transformation, and the promotion of healthy diets.

In 2024, the National Irrigation Commission (CNR) established the Strategic Boards on Water Resources, aligned with governance and water security policies. CNR formally appointed representatives to these boards, convened by the General Directorate of Water (DGA), to contribute to Strategic Plans for Basin Water Resources.

In September 2023, Chile approved amendments to Law No. 18.450, the primary legal instrument for promoting water efficiency. The revised law prioritises public investment in small and medium-scale agriculture, women, and Indigenous communities while advancing environmental sustainability. In 2024, priority projects included reconstruction efforts due to the effects of intense floodings that damaged irrigation infrastructure, modernisation initiatives on infrastructure, and support for small-scale farming cooperatives. The law also incorporates a gender-focused approach, with exclusive calls for women farmers to achieve gender parity in participation.

In 2024, Chile began developing a National Strategy for the Prevention and Reduction of Food Loss and Waste. The strategy is expected to be launched in the second half of 2025. Additionally, a Clean Production Agreement was established in 2024 between AB Chile (the food processing industry association), the Sustainability and Climate Change Agency (ASCC), and ODEPA. This agreement is the first to tackle food loss and waste management across the entire food and beverage sector.

A 2023 amendment to Law No. 21.075 expanded the use of greywater for agricultural irrigation. In this context, in 2024, a strategy to promote the safe reuse of greywater in agriculture has been developed based on a risk assessment led by the Chilean Agency for Food Safety and Quality (ACHIPIA). The assessment included currently restricted crops for greywater irrigation, such as those consumed raw.

In 2024, the Agricultural Development Institute (INDAP) convened an inter-ministerial team to develop the National Rural Youth Policy. This initiative, built through participatory dialogues with social actors, academia, international organisations, and public institutions, marks the first time Chile formally recognises rural youth as a diverse group beyond agriculture. The policy addresses key issues such as access to technology, quality education, political participation, and equal opportunities for personal and professional growth. The policy provides a comprehensive characterisation of rural youth and outlines guidelines for state implementation and governance to tackle major challenges in rural areas. It is currently in its final validation stage within the Ministry and Presidency before publication.

In 2024, the Chilean Agency for Food Quality and Safety (ACHIPIA) launched a south-south co‑operation project with Mexico to support small-scale, female-led food enterprises in producing safer food. Interministerial efforts in 2024 updated the national food safety and quality policy, which is set for publication in 2025. ACHIPIA conducted key studies on pesticide residue regulations and the safe use of residual grey water in agriculture to tackle water scarcity. It also completed a study on Antimicrobial Resistance (AMR) surveillance.

Trade policy developments in 2024-25

In 2024, the Agricultural and Livestock Service (SAG) advanced in electronic certification (eCert) and data-driven management to modernise operations. Progress in electronic certification for plant/crop products during 2024 includes:

• Brazil: signed agreements for phytosanitary and wine product certification. The country signed its first electronic certification agreement for wine and beverages, modernising trade procedures in this sector.

• China: awaiting approval for a paperless pilot in a designated port.

• Ecuador: incorporated ePhyto certification for ornamental products.

• Korea and Bolivia: fully implemented paperless.

• New Zealand: initiated a transition phase to enable paperless certification in 2025.

Key developments in eCert for animal products include:

• United States, in which system updates and security analysis were finalised; awaiting US approval to commence electronic certificate exchanges between January and March 2025.

• Pacific Alliance (Mexico, Colombia, Peru) and Uruguay, paperless exchange with Uruguay begins in January 2025, while Mexico enters a transition phase, expecting full implementation by March 2025. Colombia and Peru are finalising system updates.

In terms of trade agreements, Chile advanced trade relations with:

• Brazil through agreements for exporting Piel de Sapo melons and fresh peonies. The list of products approved for organic certification was also expanded to include livestock products, adding value to exports among both countries.

• The Free Trade Agreement with the European Free Trade Association (EFTA) was modernised, improving market access for Chilean products.

• Additionally, negotiations were finalised for the Advanced Framework Agreement with the European Union, which began to apply on 1 February 2025. As a result, a duty-free quota of 11 000 tonnes per year has been established for olive oil. For beef meat, the quota increases from 2 850 tonnes/year to 4 800 tonnes/year. For pork meat, the quota doubled, from 9 800 tonnes/year to 19 800 tonnes/year. Finally, for poultry meat, the duty-free export quota will rise from 20 300 tonnes/year to 38 300 tonnes/year by the third year of the agreement’s implementation.

• In China, an agreement was signed on almond export requirements, while the pork export protocol was extended to include refrigerated products and frozen by-products. Further progress was made when China lifted poultry meat export restrictions after Chile was declared avian influenza-free in August 2023.

The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2023 was 6%, which is exactly the same as non-agricultural products (6%) (WTO, 2025[3])

Policy context

Key economic and agricultural statistics

In 2023, agriculture’s weight in the economy accounted for 3.9% of GDP and 6% of total employment. The sector has a dual structure, in which small-scale farms co-exist alongside a large-scale commercial farm sector. Chile is an open trade country, which has helped it to become an important producer and exporter of agricultural and food products such as fruits, vegetables, pig meat and wine. Chile is a net exporter of agro-food products with a surplus of around USD 3.74 billion (excluding fish and forestry) in 2023. Agro-food products accounted for 14.4% of Chile’s total exports and for 11.6% of its imports (Table 8.2).

Table 8.2. Chile: Contextual indicators

	Chile		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	145	647	0.36%	0.42%
Population (million)	15	20	0.36%	0.38%
Land area (thousand km2)	744	744	0.91%	0.90%
Agricultural area (AA) (thousand ha)	15 110	10 637	0.50%	0.37%
			All countries1
Population density (inhabitants/km2)	21	27	52	64
GDP per capita (USD in PPPs)	9 440	32 396	9 368	29 013
Trade as % of GDP	22.3	26.9	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	5.7	3.9	2.9	3.5
Agriculture share in employment (%)	14.1	6.0	-	-
Agro-food exports (% of total exports)	17.0	14.4	6.4	8.1
Agro-food imports (% of total imports)	7.7	11.6	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	67.6	58.4	-	-
Livestock in total agricultural production (%)	32.4	41.6	-	-
Share of arable land in AA (%)	11.6	12.2	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Chile had a strong recovery in 2021 following the contraction due to the COVID-19 pandemic, however, the economy encountered an important drawback in 2023, as GDP grew only 0.22% but recovered substantially by 2024 with a real GDP growth of 2.39%. The country’s unemployment rate in 2024 was 8.12%. Inflation decreased from 11.6% in 2022 to 7.5% in 2023 (Figure 8.4).

Chile is a net exporter of agricultural and agro-food products (surplus of USD 3.74 billion), and has been successfully adding value to the production of primary commodities by producing more differentiated products such as temperate fruits, and processed products such as wine. In 2023, 85% of agro-food exports were products for final consumption, both primary and processed, and only 15% were products for further industrial processing. Agro-food imports were mostly processed products for consumption, with 57% (Figures 8.5A and 8.5B).

Total Factor Productivity (TFP) has been the dominant driver for Chile’s growing agricultural production. While output growth averaged 1.67% during the period 2013-22, slightly below the global average (1.76%). Chilean TFP growth averaged 2.69%, three times more than the world average (0.78%). Agriculture accounts for around 10.6% of Chile’s GHG emissions in 2023, similar to the OECD average of 10.1%. Around 2% of the total agricultural land was irrigated for the year 2023 (Figure 8.6; Table 8.3).

Table 8.3. Chile: Productivity and environmental indicators

	Chile		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	4.0%	2.7%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	..	..	32.0	29.7
Phosphorus balance, kg/ha	..	..	3.3	2.5
Agriculture share of total energy use (%)	..	1.5	1.7	2.0
Agriculture share of GHG emissions (%)	19.3	10.6	8.7	10.1
Share of irrigated land in AA (%)	..	2.0	-	-
Share of agriculture in water abstractions (%)	..	..	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Before 1973, agricultural policies in Chile followed an import substitution industrialisation model, with measures such as price and production controls for staples (e.g. wheat), import tariffs, and export restrictions. Longstanding institutions were created in this period, including the Institute for Agricultural Development (INDAP - the smallholders’ agency), the Agriculture and Livestock Service (SAG - animal and plant health institute), INIA (agricultural innovation agency), and others. This period also saw land reforms that provided land to small-scale farmers and landless people (Anderson and Valdes, 2007[4]).

Economic and agricultural policies shifted in 1973 with the military coup. Chile was the first country in the developing world to adopt a market-oriented open economy and structural macroeconomic reforms. These reduced the role of government in the economy and liberalised trade (OECD, 2008[5]).

From 1973-83, general reforms such as macroeconomic stabilisation were advancing more rapidly than agricultural sector-specific reforms. However, marketing boards and price control agencies for agricultural products were dismantled, import tariffs were reduced, and export restrictions were lifted. From the mid-1980s, the government took measures to improve competitiveness and stimulate production and exports, with general services to the sector playing a central role. Several agricultural institutions related to innovation and irrigation were created, but smallholder development, the environment and resource use received little attention (Anderson and Valdes, 2007[4]).

Since the restoration of democracy in 1990, agricultural policy has focused on three objectives: (1) increasing competitiveness, (2) achieving more balanced agricultural development by better integrating poorer, less-competitive farmers into commercial supply chains, and (3) preserving the environment through sustainable use of resources. Tariffs were further reduced, and numerous Regional Trade Agreements (RTAs) were signed, granting trade preferences to partners for agricultural products (OECD, 2008[5]). In 2022 the new government emphasised policies to address inequality issues in the sector, as well as on sustainability and water management (Table 8.4).

Table 8.4. Chile: Agricultural policy trends

Period	Broader framework	Changes in agricultural policies
Prior to 1973	Import substitution industrialisation model Closed economy	High import tariffs Price controls (e.g. minimum prices of main agricultural products such as wheat, fixed consumer prices, fixed marketing margins) Export quotas, licenses and export bans on the main staple foods Subsidies to some producers (e.g. milk) Interventions in input markets Investments in agricultural infrastructure (e.g. slaughterhouses, storage and processing facilities, roads) Establishment of key agricultural institutions (e.g. INDAP, SAG, INIA, COTRISA) Land reform
1973-1990	Reforms for trade liberalisation	Removal of agricultural price controls Dismantling of marketing boards and price control agencies, except for wheat, milk and oilseeds Rapid tariff reduction on most imports Introduction of a uniform, non-discriminatory tariff system Elimination of export restrictions Establishment of price stabilisation mechanisms (price band systems) for imported products (wheat, sugar and oilseeds) Creation of further agricultural institutions (e.g. FIA, CNR)
1990-2022	Return to democracy continues with the open markets model	Most Favoured Nation tariff reduction up to 1% by 2020 for all agricultural products Many free trade agreements have been signed Dismantling of the price band systems for sugar and oilseed Increase in budgetary allocation to support smallholders and for investments in general services
2022- present	More emphasis on inequality issues addressing small-scale agriculture, women, indigenous people and youth. Greater emphasis on sustainability and water management.	While the country continued with open markets, more emphasis on small-scale agriculture took place by providing greater resources to INDAP. Law modifications on water management. Law modifications on soil programmes Development of National Strategy of Sovereignty for Food Security Agriculture sustainability programmes.

Market price support (MPS) is relatively low, producer support declined from close to 10% of gross farm receipts at the end of the 1990s, to below 4% throughout the 2010s, and averaged 3% for the period 2022-24. Support payments related to agricultural input use have partly replaced MPS, and these are targeted at small-scale agriculture. More funding is also provided for the provision of general services, which today account for half of Chile’s total support estimate to agriculture (Figure 8.7).

References

[4] Anderson, K. and A. Valdes (2007), Distortions to Agricultural Incentives in Latin America, World Bank Group, Washington, DC, http://documents.worldbank.org/curated/en/518211468170062688/Distortions-to-agricultural-incentives-in-Latin-America.

[2] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Food, Agriculture and Fisheries Papers, No. 216, OECD Publishing, Paris, https://doi.org/10.1787/ebfdca09-en.

[1] MINAGRI (2025), OECD Annual Country Report. Government Report.

[5] OECD (2008), OECD Review of Agricultural Policies: Chile 2008, OECD Review of Agricultural Policies, OECD Publishing, Paris, https://doi.org/10.1787/9789264042247-en.

[3] WTO (2025), Tariff profiles.