The total support to agriculture (TSE) provided in OECD countries1 represented USD 319 billion (EUR 279 billion) per year on average in 2017-19, of which 72%, or USD 231 billion (EUR 202 billion) was provided as support to producers individually (PSE). Producer support represented 17.6% of gross farm receipts (%PSE) in 2017-19 across the OECD area, a decline from around 29% in 2000-02 and more than 35% in 1986‑88 (Table 2.1).
The way support is delivered to producers has also evolved. In particular, the development in support to agriculture in the OECD area is characterised by the long-term decline of support based on commodity output (including market price support and output payments). OECD work has identified this form of support as having the strongest potential to distort agricultural production and trade, together with the payments based on the unconstrained use of variable inputs, which has slightly increased across OECD countries compared to the beginning of the millennium. These forms of support together represent 8.5% of gross farm receipts and 48% of producer support in 2017-19, down from 19.5% and 68%, respectively, in 2000‑02.
At the other end of the spectrum in the PSE classification, some countries also apply less distorting forms of support, such as payments based on parameters that are not linked to current production or based on non-commodity criteria such as land set aside or payments for specific environmental or animal welfare outcomes. Most notably, payments based on historical entitlements (generally crop area or livestock numbers of a given reference year in the past) have increased significantly in many OECD countries in the last two decades, representing some 3.5% of gross farm receipts and about a fifth of the PSE during 2017-19. Payments based on current crop area and animal numbers have remained largely unchanged compared to 2000-02, and currently represent around 22% of total producer support (Table 2.1).
The expenditures financing general services to the sector (GSSE) increased (in nominal terms) in the OECD area from USD 36 billion per year in 2000-02 to USD 43 billion in 2017-19. Most of these expenditures in 2017-19 go to the financing of infrastructure (USD 18.4 billion), recording a slight increase compared to 2000-02, while the expenditures for agricultural knowledge and innovation (USD 13 billion) have increased by two-thirds. Expenditures for inspection and control services doubled, while spending for marketing and promotion activities and, more substantially, public stockholding declined over the same period, but all of these represented smaller shares of the GSSE expenditure (Table 2.1).