Agricultural Policy Monitoring and Evaluation 2025

25. Switzerland

Main findings

Support to agriculture

Since the 1980s, Switzerland has undertaken gradual reforms to open its agricultural markets, resulting in moderate reductions in support to agriculture. Support to producers as a share of gross farm receipts then plateaued in the early 2010s and remains at 49% on average in 2022-24, more than three times the OECD average and the highest level measured for that period across the countries covered by this report. However, the structure of support has changed, with direct payments replacing a substantial share of market price support (MPS).

MPS remains the main component of support, arising mostly from tariff rate quotas (TRQs) with high out-of-quota tariffs. MPS represented 44% of total producer support in 2022-24, down from 62% in 2000-02. Domestic producer prices were 47% above border reference prices on average in 2022‑24. Large price gaps lead to substantial shares of Single Commodity Transfers (SCT) in commodity gross farm receipts for many products – notably poultry, eggs, and pig meat – while sugar benefits from direct budgetary support.

Switzerland provides significant direct payments to farmers, almost all of which are subject to environmental cross-compliance. The share of these payments in total support to producers increased from 38% in 2000-02 to around 56% in recent years, following the phase down of MPS. Since their reform in 2014, direct support mostly consists of decoupled payments – area-based payments for agricultural land not tied to a specific commodity, payments to maintain farming in less-favoured areas, and payments to farmers who voluntarily apply additional environmental or animal-welfare-related practices.

Switzerland’s expenditures for general services (General Services Support Estimate, GSSE) rose from below 6% in 2000-02 to nearly 9% relative to the sector’s production value in 2022‑24, which is among the highest proportion for countries covered in this report. Almost half of GSSE expenditure goes to the agricultural knowledge and innovation system.

Total support to agriculture (Total Support Estimate, TSE) fell as a share of Gross Domestic Product (GDP) from 2% in 2000-02 to less than 1% in 2022-24.

Key recent policy changes

Switzerland implemented in 2025 some of the social and economic provisions adopted by the Parliament as part of the Swiss Agricultural Policy beyond 2022 (AP22+) reform. This includes mandatory social security coverage as from 2027 for spouses who work regularly and to a significant extent on the farm. On the economic side, new support was introduced to cover up to 30% of crop insurance cost for farmers, for a maximum period of 8 years. The goal is to provide better coverage for widespread risks such as drought and frost and to promote broader penetration of crop insurance with start-up financing. The Parliament also approved in March 2025 the budget allocation for the period 2026-2029 – CHF 14.2 billion (USD 16.1 billion) which is 0.9% higher than the allocation for the 2022-25 period, mostly due to increased funding for structural improvements. A broader reform has been announced for 2030 (AP30+).

Several new agri-environmental measures and modalities scheduled for 2024-25 were reconsidered. The introduction of an obligation of setting aside 3.5% of cropland for the protection of biodiversity, already planned in 2022 but postponed for several years, was finally abandoned following a parliamentary decision. Some other adjustments to new 2025 measures took place with the objective of reducing the administrative burden on farmers – simplified execution of new provisions for insurances, of support related to landscape quality and to biodiversity networks, and delayed obligation to report farm accounting data and pesticide use on the new digiFLUX platform. New non-compliance sanctions related to pesticide runoff limits, set as part of ecological services requirements, were also put on hold.

Together with other members of the European Free Trade Association (EFTA), Switzerland signed several new or revised free trade agreements (FTAs). The comprehensive Trade and Economic Partnership Agreement (TEPA) with India, signed in March 2024, is the first of its kind in Europe with the most populated country of Asia, is to come into force in October 2025, while the FTA with Moldova, signed in 2023, entered into force in Switzerland in April 2025. New FTAs with Thailand and with Kosovo were also signed in January 2025. The FTA with Thailand is Switzerland’s first trade agreement to be supported by a sustainability impact assessment, which investigated the implications of increased trade in agricultural products on climate change, deforestation and biodiversity loss, with an in-depth look at vegetable oils and poultry meat. EFTA also reached an agreement for a new FTA with Malaysia in April 2025. In addition, the FTA with Chile, which has been in place since 2004, was modernised, broadening market access for agricultural products between the two countries, and adding a chapter dedicated to trade and sustainable development covering notably sustainable agriculture and food systems. A modernisation agreement of the EFTA FTA with Ukraine, in place since 2010, was also signed in April 2025.

Assessment and recommendations

• Switzerland imports half of its food consumption and trade sustainability is part of the country’s constitutional principles. In practice, environmental clauses are only recent within EFTA preferential trade agreements, however, with limited constraints for agricultural products. The palm oil sustainability rules in the Switzerland-Indonesia FTA are a notable exception, but their effectiveness at transforming Indonesian production processes remains limited as the related import quota has hardly been used so far. Switzerland should continue efforts to integrate environmental considerations into trade policies. The introduction of sustainability impact assessment as part of EFTA agreements preparation since 2024 is a positive step in this direction.

• At domestic level, Switzerland has progressed in implementing the social provisions initially planned for AP22+. However, the environmental achievements following that reform are more mixed. New payments for improved farming practices and the water quality plan should help reduce some environmental pressures from the sector. But recent steps weakening some planned environmental measures, and the postponement of broader policy reform to 2030 illustrate how challenging it has been to maintain the initial ambition of transforming agriculture and food systems. Nitrogen in particular remains an issue, with a surplus in the country still twice the OECD average. A more results-based approach to policy design, combined with stronger regulations, may be required to address this structural issue.

• While Switzerland reduced its share of most-distorting producer support over the past decades, border measures and output-based payments remain among the highest in the OECD. Continued efforts to decouple income support from farm output would reduce pressures on the local environment and decrease domestic food prices. It would also support further innovation in the sector by encouraging farms’ competitiveness and diversification.

• The Swiss strategic vision for agriculture emphasises integrating environmental sustainability, innovation, and knowledge diffusion into agricultural policy. The federal budget for agricultural research is among the highest of the OECD relative to the value of production. Still, gains in total factor productivity growth have been variable over the past years and broader diffusion of innovation across territories would support more widespread adoption of new technologies.

• The emphasis on food systems in the long-term vision for agriculture should also contribute to Switzerland’s sustainability objectives, notably on climate. Livestock products, which represent the largest share of agricultural output, remain the main driver of the sector’s GHG emissions and the main source of nutrient surpluses. Yet, the country currently produces more livestock products than it consumes, which requires further feed crop imports, thereby exacerbating soil nutrient imbalances. The current approach to self-sufficiency should be revisited to better support sustainability objectives.

Development of support to agriculture

Table 25.1. Switzerland: Estimates of support to agriculture

Million USD

	1986-88	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	8 023	5 691	10 405	9 949	10 604	10 662
of which: share of MPS commodities (%)	62.80	57.98	60.53	60.90	59.83	60.87
Total value of consumption (at farm gate)	12 690	8 847	17 926	17 084	17 332	19 363
Producer Support Estimate (PSE)	6 841	5 030	6 994	6 196	7 212	7 574
Support based on commodity output	5 936	3 337	3 471	2 840	3 626	3 946
Market price support¹	5 909	3 119	3 050	2 434	3 205	3 512
Positive market price support	5 909	3 119	3 050	2 434	3 205	3 512
Negative market price support	0	0	0	0	0	0
Payments based on output	27	218	420	406	421	434
Payments based on input use	357	126	134	141	132	129
Based on variable input use	289	67	73	70	74	75
with input constraints	0	14	0	0	0	0
Based on fixed capital formation	46	53	61	71	58	54
with input constraints	0	0	15	34	5	6
Based on on-farm services	23	6	0	0	0	0
with input constraints	0	0	0	0	0	0
Payments based on current A/An/R/I, production required	392	563	1 297	1 054	1 383	1 453
Based on Receipts / Income	10	0	0	0	0	0
Based on Area planted / Animal numbers	382	563	1 297	1 054	1 383	1 453
With input constraints	217	540	1 245	1 007	1 331	1 398
Payments based on non-current A/An/R/I, production required	18	51	980	1 088	963	888
Payments based on non-current A/An/R/I, production not required	0	773	56	56	29	82
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	0	773	56	56	29	82
with commodity exceptions	0	0	0	0	0	0
Payments based on non-commodity criteria	0	58	801	764	821	817
Based on long-term resource retirement	0	0	0	0	0	0
Based on a specific non-commodity output	0	58	801	764	821	817
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	137	120	256	253	257	258
Percentage PSE (%)	76.27	66.12	48.65	45.19	49.36	51.44
Producer NPC (coeff.)	4.34	2.41	1.47	1.38	1.49	1.56
Producer NAC (coeff.)	4.21	2.95	1.95	1.82	1.97	2.06
General Services Support Estimate (GSSE)	431	337	906	854	920	945
Agricultural knowledge and innovation system	110	70	436	410	445	453
Inspection and control	9	24	9	10	8	11
Development and maintenance of infrastructure	80	54	96	91	97	99
Marketing and promotion	29	37	74	68	76	78
Cost of public stockholding	66	32	60	54	61	65
Miscellaneous	137	120	232	221	235	239
Percentage GSSE (% of TSE)	5.43	6.12	11.48	12.10	11.31	11.09
Consumer Support Estimate (CSE)	-8 979	-5 005	-5 684	-4 283	-5 583	-7 187
Transfers to producers from consumers	-6 035	-3 220	-3 058	-2 438	-3 199	-3 537
Other transfers from consumers	-3 785	-1 983	-2 631	-1 849	-2 387	-3 655
Transfers to consumers from taxpayers	700	147	4	4	3	6
Excess feed cost	141	50	0	0	0	0
Percentage CSE (%)	-74.74	-57.53	-31.55	-25.08	-32.22	-37.13
Consumer NPC (coeff.)	4.39	2.43	1.46	1.34	1.48	1.59
Consumer NAC (coeff.)	3.96	2.35	1.46	1.33	1.48	1.59
Total Support Estimate (TSE)	7 972	5 514	7 904	7 053	8 135	8 524
Transfers from consumers	9 820	5 202	5 689	4 287	5 586	7 193
Transfers from taxpayers	1 936	2 294	4 846	4 615	4 936	4 987
Budget revenues	-3 785	-1 983	-2 631	-1 849	-2 387	-3 655
Percentage TSE (% of GDP)	4.17	1.89	0.89	0.85	0.91	0.91
Total Budgetary Support Estimate (TBSE)	2 062	2 394	4 854	4 619	4 930	5 012
Percentage TBSE (% of GDP)	1.08	0.82	0.55	0.56	0.55	0.53
GDP deflator (1986-88 = 100)	100	127	142	141	142	144
Exchange rate (national currency per USD)	1.58	1.65	0.91	0.95	0.90	0.88

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 Switzerland are: wheat, maize, barley, rapeseed, sugar, milk, beef and veal, sheep meat, pig meat, poultry and eggs.

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

Policy landscape

Main policy instruments

Policy objectives

Swiss agricultural policy falls under the framework of the Agriculture Act (AgricA) from 1998, which establishes the principles and instruments for the regulation of the sector. The AgricA aims to ensure that agriculture is sustainable and innovative. It focuses on 1) food security for the population; 2) conservation of natural resources; 3) preserving cultivated landscape; 4) decentralised occupation of the territory; and 5) improving animal welfare.

The key elements of the AgricA have been enshrined in the Swiss Federal Constitution (Art. 104). In 2017, a popular initiative led to the adoption of a new article on food security that emphasises the need to guarantee the supply of food to the population through:

• safeguarding the basis of agricultural production, especially land

• adapting food production to local conditions and using natural resources efficiently

• ensuring that the agriculture and food sector meet the market’s needs

• building trade relationships that contribute to the sustainable development of the agriculture and food sector

• using food in a way that conserves natural resources.

The Constitution and the AgricA require securing sufficient long-term food supplies for the population, based on both domestic production and imports, considering the entire value chain. This is achieved through specific measures developed within four-year budget and programme cycles.

Budgetary support

The current support programmes are defined by the agricultural budget for the Payment Framework 2022‑25. The budget allocation for agriculture has been rather stable in nominal terms over the past decade, at about CHF 3.4 billion (USD 3.9 billion) per year. The 2022-25 budget is 0.6% larger than for the previous agricultural policy AP 2018-21, which itself had a budget 1.7% below the AP 2014-17 one.

Budgetary support to agriculture consists of three main elements, including direct payments, production and marketing expenditures, and support to improve the production base.

Direct payments to farmers target provision of basic food products, environmental services (landscape, biodiversity, sustainable use of resources) and animal welfare. These payments are subject to environmental conditions, with specific “ecological services requirements”.

Production and marketing expenditures mainly support dairy producers via three types of payments: (1) for processing milk into cheese; (2) for producing milk without silage feed; and since 2019 (3) for commercial milk and dairy product sales from the farm. In addition, area payments apply to oilseeds, protein crops, cereals (introduced in 2019) and sugar beet. New 2019 payments for milk and for cereals were introduced to compensate for the previous elimination of export subsidies (see AgricA Art. 40 and 55, respectively). Some expenditures under this heading are also for general services to the sector, including marketing and product promotion.

Policies to improve the production base include direct support for on-farm investments as well as general support for infrastructure improvement, social aid to farmers, and advisory services, which were all initiated as part of the AP 2014-17 policy framework.

Following the abolition of milk quotas in 2009, the inter-branch organisation for milk, l’Interprofession du Lait (IP Lait), implemented standard milk delivery contracts for its members. These set different prices and volumes for milk delivery (contingents A, B and C). These contracts became compulsory for all milk producers in 2013, including those outside IP Lait. In effect, this replaced the previous production quota system with another production control mechanism implemented on a private basis. This scheme was extended in 2021 by the Federal Council (Switzerland’s federal government) and are still in place today.

The federal budget dedicated to agricultural knowledge and innovation systems (AKIS) occupies an important role in the current agricultural policy (OECD, 2022[1]). This public budget for agriculture research more than doubled from an average CHF 73 million (USD 83 million) annually over 2000‑02 to CHF 195 million (USD 222 million) over 2022‑24, and it increased seven-fold, from an average CHF 23 million (USD 26 million) to CHF 163 million (USD 185 million) annually for knowledge transfer over the same period, mostly through support to university and specialised schools. AKIS public expenditures in Switzerland represent in total 8.7% of the total agricultural production value versus 3.5% on average in the OECD.

Trade policy instruments

Agro-food imports to Switzerland are largely regulated by tariff rate quotas (TRQs) with relatively low in-quota tariffs and high out-of-quota tariffs. The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2023 was estimated by the World Trade Organization (WTO) at 28.5%, well above the 1.3% applied to non-agricultural products (World Trade Organization, 2024[2]). Switzerland has a total of 28 TRQs within the WTO. These affect particularly meat (average MFN tariff of 85%), and dairy products (avg. 130%).1 TRQs also regulate egg products, potatoes, fruits, vegetables, bread cereals and wine. A notable exception to the quota system is feed grains, which are subject to single tariffs. These are regularly adjusted depending on international market price conditions to stabilise feed prices for the livestock sector at domestic level.

Preferential tariff rates apply unilaterally to imports from developing countries under the general system of preferences. The Swiss Government grants zero tariffs to all products from Least Developed Countries (LDCs), so agricultural imports from LDCs (according to the official UN definition) are duty- and quota-free since September 2009.

Switzerland’s network of trade agreements consists of the European Free Trade Association (EFTA) Convention,2 the Free Trade Agreement with the European Union and 34 agreements in place with 44 countries, and two more recently concluded awaiting ratification. All these agreements were signed within EFTA, with the exception of agreements with the People’s Republic of China, Japan, the United Kingdom, and the Faroe Islands.

Climate change policies in agriculture

Switzerland set the goal in 2019 to reach climate neutrality by 2050 and defined specific commitments for emissions reductions in the agricultural sector. In 2023, a Climate Strategy for Agriculture and Food 2050 was adopted, which confirmed an objective of agricultural emissions reduction of 40% by 2050 (compared to 1990 levels). The Climate Strategy for Agriculture and Food 2050 defines the action areas for specific mitigation objectives. Beside mitigation objectives for national production, emissions at the consumer level also have an objective of a two-thirds’ reduction by 2050, compared to 2020 levels.

Several measures currently support climate mitigation in agriculture:

• A carbon tax on fossil fuels used to heat greenhouses and barns for livestock, as set out by the 2011 version of the CO₂ Act. Transportation fuels are not subject to the carbon tax. Since 2022, the level of this tax has been at CHF 120 (USD 136) per tonne CO₂. Producers can opt out of the tax payment by submitting a long-term decarbonisation plan for the related installations.

• A requirement for fossil fuel producers and importers to offset part of transport-related CO₂ emissions through national emissions reductions projects. Domestic agricultural projects can sell offsets to transport sector emitters by investing in anaerobic digesters or fertilisation improvements.

• The water quality plan sets a nitrogen surplus reduction target of 15% by 2030, compared to 2014-16 levels, and new contributions to sustainable production systems through soil fertility improvement measures, more efficient use of fertilisers and longer productive lifetime for cows to reduce emissions.

For adaptation to climate change, some measures in the national Action Plan 2020-25 target agriculture specifically, while others have indirect implications in related domains (e.g. water management, biodiversity, human health, animal welfare). The Action Plan contains 75 adaptation measures across the whole economy, including 46 already initiated over a first programming period (2014-19).3 It clarifies what actions to undertake at federal, cantonal and communal levels, and lays out international collaboration channels to support climate adaptation. Adaptation measures for agriculture are organised around three axes: (1) adapting products, production systems, and production practices; (2) improving knowledge of adaptation possibilities; and (3) mitigating weather-related risks for production and prices.

Sustainable Development Goals

The 2030 Sustainable Development Strategy (SDS) and related action plan, identify three priority themes with specific objectives for 2030: i) sustainable consumption and production; ii) climate, energy and biodiversity; iii) and social equity. For the transformation towards sustainable food systems, four targets were defined as part of the SDS Sustainable Consumption and Production theme:

• A 25% reduction of food GHG emissions footprint for Swiss consumers by 2030 compared to 2020.

• A share of one-third of the total population with healthy and sustainable dietary patterns by 2030, in line with the food pyramid (national dietary recommendations).4

• A reduction of 50% in food waste per capita by 2030 compared to 2017, and a substantial reduction in food losses along the supply chain.

• An increase by one-third by 2030 in the share of farms exceeding mandatory ecological services requirements in a verifiable manner, compared to 2020.

The SDS is also complemented by a National Pathway for Food Systems Transformation, developed in 2021 in co-ordination with stakeholders, that specifies more detailed measurable goals towards 2030, as well as concrete actionable measures.

New water-quality measures in place since 2023 have also tightened environmental sustainability objectives, to support the goal of reducing pesticide-related risks by 50% by 2027. These measures include a ban on high‑risk pesticides, more-restrictive spraying rules, and adjustments in direct payments to disincentivise pesticide use.

Policies for trade and sustainability in agro-food markets

Sustainable trade is embedded in the Swiss Constitution that states that the country should build “trade relationships that contribute to the sustainable development of the agriculture and food sector” (see above). Considering that about half of Swiss food consumption is imported, this objective requires concrete action in trade relationships. Nonetheless, in June 2024, an evaluation commissioned by the Federal Council also highlighted that trade barriers currently in place in Switzerland had a negative impact on biodiversity in the country, by requiring more intensified use of cropland and pasture land, and limiting possible expansion of areas for the promotion of biodiversity (Bystricky et al., 2024[3]).

Switzerland bases the sustainability of its trade on two pillars. The first one is multilateral engagement, through active participation to WTO negotiations and policy discussions in fora such as FAO, UNEP or the OECD on sustainability and trade.5 As an illustration, Switzerland has been among the four first countries (with New Zealand, Costa Rica and Iceland) to sign in November 2024 the Agreement on Climate Change, Trade and Sustainability (ACCTS) which plans to facilitate trade of 300 environmental goods (none related to food, but including wood and wood products), and also strengthen the quality and comparability of voluntary ecolabelling to encourage trade of products produced sustainably, in a framework expanding WTO trade rules.

A second axis of development for sustainable trade is through preferential free trade agreements (FTAs). Since 2010, the EFTA, to which Switzerland belongs, has been giving increasing attention to sustainability within its trade agreements. A model chapter on trade and sustainable development has been developed for new trade agreements, which was later revised in 2017 and 2020. Beside general commitments to respect international sustainability objectives, the chapter gives specific attention in particular to labour rights, climate protection, sustainable agriculture, sustainable management of natural resources, biodiversity conservation, fisheries sustainable management, and responsible supply chains and business conduct (notably through compliance with the OECD Guidelines). On the topic of sustainable agriculture, it proposes to establish a bilateral dialogue on best agricultural practices and sustainable food systems and report progress in that area.

This new format of trade agreement led Switzerland to commission a first study on sustainability impact assessment for negotiations of an EFTA-Mercosur FTA. In the free trade agreement with Indonesia concluded in 2018, Switzerland tied preferential treatment for palm oil products from Indonesia to compliance with sustainability criteria laid out in the Trade and Sustainable Development Chapter. In September 2024, EFTA released its first FTA Sustainable Impact Assessment before signing its trade agreement with Thailand in January 2025. The report examined, among other elements, issues related to trade in agricultural products in relation to risks of increased climate change, deforestation and biodiversity loss, with particular attention to products such as vegetable oils and poultry meat. It concluded that the trade agreement should deliver sustainability benefits but that some environmental risks should remain closely monitored.

Finally, the 25% reduction objective by 2030 for GHG emission footprint of food, set in 2021 as part of the SDS, has potential implications for trade policies, considering imports are also to be considered for the monitoring of this target. While the Federal Statistical Office produces an aggregate indicator for the emission footprint of food,6 the federal research institute Agroscope maintains the Swiss Agricultural Life Cycle Assessment (SALCA) tool, which evaluates carbon footprint for food produced domestically but also for imports and exports. Several initiatives are also under development to improve carbon footprint estimates by collecting addition data at farm level, through the Monitoring of the Swiss Agri-Environmental System (MAUS), as well as through initiatives involving the private sector, such as KlimaStar in the case of the dairy supply chain.

Recent policy developments

Domestic policy developments in 2024-25

Following the revision of environmental regulation in 2022-23, the focus in 2024-25 was on implementing the social and economic elements of the AP22+ reform. On the social side, these include new legislation by the Federal Council for mandatory social security coverage for spouses who work regularly and to a significant extent on the farm. From 2027, they will have to be covered by personal insurance. On the economic side, a new support measure was introduced in 2025 to help reduce the cost of crop insurances and reduce vulnerability to severe drought and frost. This measure covers up to 30% of farmers’ insurance cost and is limited to eight years.

The Ordinance on Quality and Sustainability Promotion (OQuaDu) in the agro-food sector was revised in 2024, replacing the previous 2014 version, to help farmers and other actors along the supply chain to increase the value-added of the sector by improving product quality and sustainability and to enhance collaboration between actors. Selected projects will have up to 50% of their costs covered by the federal budget.

In June 2024, more stringent measures against antimicrobial resistance were announced in the form of the new One Health 2024-27 action plan, designed in the context of the Swiss Strategy on Antibiotic Resistance (StAR). The new plan set six priorities and specific national objectives, for instance for early detection of antimicrobial resistance in humans, better monitoring of the use of antimicrobial products by veterinarians and reduced dispersion of antimicrobials in the environment.

The budget allocation plan for the period 2026-29 was approved in March 2025 by the Parliament, with a total of CHF 14.2 billion (USD 16.1 billion) for the whole period, which is 0.9% higher than the allocation for 2022-25. This budget extends the objectives of the current agricultural policy, with a same budget planned for direct payments and measures supporting production and marketing, representing 95% of the budget. The support to bases of production was on its side increased by CHF 130 million (USD 148 million) to finance structural improvements and development of crop varieties adapted to pests and diseases as well as methods for the sustainable protection of crops. A public consultation is envisaged in 2026 to prepare the next agricultural policy reform beyond 2030 (AP30+).

Environmental measures

In June 2024, the introduction of an obligation of setting aside 3.5% of cropland for the protection of biodiversity, initially planned in 2022 but postponed for several years, was finally abandoned following a parliamentary decision, as was the use of cereals cultivation strips for the promotion of biodiversity as part of landscape quality enhancement measures.7 This follows a temporary waiver given in 2023 to avoid adding environmental constraints for Swiss farmers, in a context of international market tensions. The waiver had been already extended once into 2024 and was initially planned to end in 2025.

Additional adjustments were decided for 2025 with the objective of reducing the administrative or operational burden on farmers. These include simplification of the execution of the new provisions for insurances, and of support related to landscape quality, and to biodiversity networks. Furthermore, the new reporting obligation of accounting data at the federal level was put on hold, and the planned ban of mower-conditioner use in all areas of promotion of biodiversity was abandoned. Finally, the application of new sanctions for non-compliance with the rules on limiting pesticide runoff, set as part of ecological services requirements, was also put on hold.

In the context of the new water quality plan implementation, a new reporting system called “digiFLUX” has also been set-up to collect information on the sales of pesticide, fertiliser and concentrate feed, and the use of pesticide by farmers. The reporting obligation for product retailers, initially planned for 2025, was postponed to 2027 to help these actors to adapt to the new system. For the use of pesticide, the reporting obligation is also postponed to 2027.

Trade policy developments in 2024-25

Switzerland and other EFTA members were in 2024 the first countries in Europe to conclude an FTA with India. Signed on 10 March 2024, the Trade and Economic Partnership Agreement (TEPA) is expected to come into force on 1 October 2025. The agreement contains provisions on trade in industrial goods and in processed and unprocessed agricultural products. Other provisions relate to technical barriers to trade, sanitary and phytosanitary measures, rules of origin, trade facilitation, trade in services, investment promotion, protection of intellectual property, competition, public procurement (development clause), dispute settlement and trade and sustainable development.

On 11 April 2025, EFTA members also concluded a new FTA with Malaysia. The signature by all countries of the EFTA-Malaysia Economic Partnership Agreement (MEEPA) is expected to occur in Norway in June 2025. The agreement plans improved market access for goods and services, as well as cooperation in various area, including notably international investment, intellectual property rights, technical barriers to trade, sanitary and phytosanitary measures, customs and trade facilitation, or trade and sustainable development, also with a close attention to palm oil supply chains.

On 8 April 2025, Switzerland and other EFTA countries signed a revised FTA in Kyiv, modernising the first agreement of 2010. The modernised FTA includes new areas of cooperation such as e-commerce, trade and sustainable development, small and medium-sized enterprises and cooperation. Under the new agreement, EFTA countries will notably receive improved market access for some of their agricultural products such as cheese, yoghurt and chocolate.

On 1 April 2025, the Free Trade agreement between EFTA and Moldova, signed in 2023, entered into force. Key areas of focus for the agreement are trade in industrial products, as well as agro-food products (including sea products), technical barriers to trade, sanitary and phytosanitary measures, rules of origin, trade facilitation, trade in services, investments, intellectual property rights, competition, public procurement, conflict arbitration and sustainable trade.

On 23 January 2025, Switzerland signed with other EFTA countries a Free Trade Agreement with Thailand. This comprehensive trade agreement includes provisions on trade in industrial goods (including fish and other marine products), basic and unprocessed agricultural products, technical barriers to trade, sanitary and phytosanitary measures, rules of origin, as well as various provisions related to regulation of trade in services and trade governance. The agreement was for the first time supported by a Sustainability Impact Assessment commissioned by EFTA (see above).

On 22 January 2025, the EFTA States, including Switzerland, also signed an FTA with Kosovo, following three years of negotiations. The FTA includes provisions related to trade in goods, technical barriers to trade, sanitary and phytosanitary measures, trade in services and other trade governance provisions, including on trade and sustainable development.

On 24 June 2024, Switzerland, as part of EFTA States, also signed a modernisation agreement for the FTA with Chile, which was in place since 2004. The modernisation, which includes broader market access for good and services, will also ensure duty-free access to 99% of agricultural products from EFTA States into Chile, and 95% of agrifood products from Chile into EFTA. Among the new chapters added to the FTA, one specific section now relates to trade and sustainable development and covers notably sustainable agriculture and food systems.

The tariff rate quotas (TRQs) on cereals applied by Switzerland were adjusted several times in the course of 2024 and early 2025, to address one of the most severe production shortages over the past decades for bread cereals due to unusually cold and humid weather conditions. After having increased the 70 000 tonnes in-quota volume by an extra 20 000 tonnes in October 2024, a new larger volume increase of 60 000 tonnes was decided for the in-quota imports applied in 2025.

As it was the case in previous years, Switzerland also had to adjust its TRQ for eggs to bridge the gap between its consumption and production. Initially set at 17 428 tonnes, the in-quota volume was increased in September 2024 by 7 500 tonnes to ensure the domestic demand be fulfilled.

In September 2024, Switzerland published a list of 26 Ukrainian geographical indications. These includes several names of mineral waters, wines, cheeses and a variety of cherry. This list is now integrated to the EFTA-Ukraine FTA, the modernisation of which was signed in April 2025.

Policy context

Key economic and agricultural statistics

Switzerland is a small economy with high GDP per capita, that had experienced low and periodically negative inflation until the 2022 global inflation surge with unemployment rates below 5% over the past two decades. GDP growth has been stable at around 2% prior to the COVID-19 pandemic, and following a high-growth recovery period in 2021, it resumed by 2024 with growth rates around pre-crisis levels.

The relative importance of agriculture in the Swiss economy is low, accounting for just 0.6% of GDP and around 1.9% of employment. The farm structure is dominated by relatively small family farms. Hills and mountain farming areas (including alpine summer pastures) are used for extensive milk and meat production, while more intensive pork and poultry production is located in valleys. Agricultural land covers 38% of the country area and is composed mostly of grassland, with arable land representing only 27% of agricultural land. Production has gradually shifted away from traditional grains and oilseeds towards fruits and vegetables.

Table 25.2. Switzerland: Contextual indicators

	Switzerland		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	264	802	0.66%	0.52%
Population (million)	7	9	0.17%	0.17%
Land area (thousand km2)	40	40	0.05%	0.05%
Agricultural area (AA) (thousand ha)	1 566	1 496	0.05%	0.05%
			All countries1
Population density (inhabitants/km2)	180	221	52	64
GDP per capita (USD in PPPs)	36 349	89 997	9 368	29 013
Trade as % of GDP	29.2	43.9	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	1.1	0.6	2.9	3.5
Agriculture share in employment (%)	4.6	1.9	-	-
Agro-food exports (% of total exports)	2.4	2.7	6.4	8.1
Agro-food imports (% of total imports)	5.2	4.4	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	50.2	44.9	-	-
Livestock in total agricultural production (%)	49.8	55.1	-	-
Share of arable land in AA (%)	26.1	26.5	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.

Switzerland has consistently been a net agro-food importer, with USD 16.2 billion of total imports of agro-food products in 2023, compared to USD 11.2 billion for its agro-food exports. Swiss agro-food exports consist mostly of processed products for final consumption (86% of total agro-food exports). This category also represents almost half of the agro-food imports (Figure 25.5).

Total factor productivity (TFP) growth in agriculture is estimated by ERS to be 1.5% between 2013 and 2022. This large increase can be explained by a decreased use of intermediary inputs (-0.9%) and primary factors (‑1%). These results may however be partly explained by the reduced purchase of fertiliser in 2022 following Russia’s full-scale invasion of Ukraine, when Switzerland activated its fertiliser strategic reserves. Despite this productivity growth surge, according to these estimates the overall output has declined over that period.

Swiss agriculture is largely rain-fed. Swiss farmers irrigate only 2.3% of their agricultural land and the share of agriculture in the country’s water abstraction (8%) is less than one-sixth of the OECD average. In addition, the water stress indicator is well below the OECD average. Agriculture’s share of energy use went down as well and is a third of the OECD average. On the other hand, while nutrient surpluses have declined moderately, the surplus of nitrogen (66 kg/ha for N) is still more than twice the OECD average, which negatively impacts water quality and GHG emissions. Swiss agriculture emissions amounted to 5.9 MtCO₂eq in 2022 (13.1% of national emissions), not counting emissions from energy consumption in agriculture, forestry and fisheries (0.6 MtCO₂, i.e. 1.4%). This places the country above the OECD average. While the LULUCF sector in Switzerland is a net sink, thanks to forest management (‑2.3 MtCO₂ per year since 1990), cropland and grassland also emit together an average 0.7 MtCO₂ (1.5% of the national emissions) due to changes in soil carbon.

Table 25.3. Switzerland: Productivity and environmental indicators

	Switzerland		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	0.1%	1.5%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	61.1	65.9	32.0	29.7
Phosphorus balance, kg/ha	2.8	4.2	3.3	2.5
Agriculture share of total energy use (%)	0.6	0.7	1.7	2.0
Agriculture share of GHG emissions (%)	11.4	13.1	8.7	10.1
Share of irrigated land in AA (%)	2.8	2.3	-	-
Share of agriculture in water abstractions (%)	..	8.0	47.0	49.5
Water stress indicator	4.9	3.8	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

Until the early 1990s, Swiss agriculture was largely isolated from world markets, due to high trade barriers and strong domestic market regulations. Substantial reforms of agricultural policy were implemented in the mid-1990s and early 2000s. These were prompted by commitments made under the GATT and later the WTO. There have been no systematic policy reforms since 2013, and current schemes are expected to extend until at least 2025.

The reforms implemented between 1993 and 2003 had three main elements:

• Reduced barriers to imports and greater transparency in border measures, gradual removal of price guarantees and other market regulations, maintenance of production quotas for milk, and introduction (in 1998) of new market regulations for sugar.

• New direct payments less coupled to production, and voluntary ecological direct payments linked to ecological services (1993-1998).

• Cross-compliance requirements connecting almost all direct payments to proof of ecological performance as of 1999.

Between 2004 and 2013, policy reforms were comparatively modest and focussed on deregulation of agricultural markets. Export subsidies were phased out, and milk quotas were abandoned in 2009 even though the market continues benefitting from public support.

In 2013, a new Agricultural Policy framework for 2014-17 (AP 2014-17) reformed the system of payments (OECD, 2015[4]). This framework was extended since then and is still in place today. The direct payment scheme was modified under this reform to improve its efficiency and effectiveness and create links to specific agricultural practices (OECD, 2017[5]). Additional payments to producers were introduced in 2019 for commercial milk (AgricA Art. 40) and grain (AgricA Art. 55) to compensate for the phase out of the last export subsidies abolished at the end of 2018, as a consequence of the WTO Nairobi agreement of 2015.

Strengthening of the environmental modalities (regulations on pesticide and nutrient surpluses, cross-compliance requirements and budgetary support to sustainable practices) has been considered in the context of the latest reform discussions for the Swiss Agricultural Policy beyond 2022 (AP22+) and led to the adoption of new water quality measures in 2023. Broader environmental reforms are however postponed to policies post-2030.

Table 25.4. Switzerland: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1993	Closed market	High border protection; regulated prices and interventions in domestic agricultural markets Payments based on output and input use; commodity-specific area and headage payments
1993-1998	Reforms to open up markets New system of direct payments	Reduced import barriers; enhanced transparency Reduction of export subsidies for some agricultural and processed products Reduction of domestic market regulations except for milk (production quotas); introduction of sugar production quotas and guaranteed prices Creation of General Direct Payments, including: - Complementary Direct Payments based on area (arable and grassland) and other supplementary payments - Payments for integrated production - Payments for farming in difficult conditions Introduction of Ecological Direct Payments as voluntary schemes based on environmental services provided by farmers (biodiversity, landscape, animal welfare, etc.), and incentives for more sustainable use of resources and pollution reduction
1999-2004	Continuation of reforms to open up markets Changes in the system of direct payments	Further gradual reduction of import barriers Reform of the General Direct Payments; Complementary Direct Payments replaced by a general Area Payment not requiring production of particular crops; introduction of a general payment for ruminants Abolition of payments for integrated production Introduction of environmental cross-compliance; all direct payments conditional to a proof of ecological requirements
2005-2013	Abolition of export subsidies Removal of production quotas (dairy, sugar)	Further gradual reduction of import barriers Abolition of export subsidies for primary agricultural products (2010) Abolition of dairy quotas and related guarantee prices for milk (2009) Abolition of sugar market regulations and introduction of area payments for sugar-beet to compensate for related price reductions (2009)
2014-present	Reform of the general direct payments	Reform of the system of General Direct Payments (2014) Abolition of general area payments Reallocation of payments related to specific agricultural practices Introduction of transition payments to make the reform socially acceptable Replacement of general headage payments to ruminants with area payments to pastures with a minimum stocking density Continuation of environmental cross-compliance conditions within the new system of payments Abolition of remaining export subsidies for some processed products (1 January 2019) New payments to producers of commercial milk and grains to compensate for price reductions due to the abolition of export subsidies for processed products (2019)

Support to farmers declined from close to 80% of gross farm receipts in the late 1980s but remained high at 49% on average during 2022‑24. Potentially most production- and trade-distorting support (mainly market price support) also declined from around more than 90% to around 50% of producer support between 1986-88 and 2022-24, while other payments grew.

References

[3] Bystricky, M. et al. (2024), “Evaluation agrarpolitischer Massnahmen bezüglich Biodiversitätswirkung : Versorgungssicherheitsbeiträge und Grenzschutz”, Agroscope Science, Vol. 187, https://doi.org/10.34776/as187g.

[1] OECD (2022), “The agricultural innovation system in Switzerland”, in Enhancing Innovation in Rural Regions of Switzerland, OECD Publishing, Paris, https://doi.org/10.1787/fda0a725-en.

[5] OECD (2017), “Reforming agricultural subsidies to support biodiversity in Switzerland: Country Study”, OECD Environment Policy Papers, No. 8, OECD Publishing, Paris, https://doi.org/10.1787/53c0e549-en.

[4] OECD (2015), OECD Review of Agricultural Policies: Switzerland 2015, OECD Review of Agricultural Policies, OECD Publishing, Paris, https://doi.org/10.1787/9789264168039-en.

[2] World Trade Organization (2024), World Tariff Profiles 2024, WTO, https://doi.org/10.30875/9789287076519.

Notes

← 1.  Switzerland applies specific tariffs (and in- or out-quota tariffs in the case of TRQs), i.e. tariffs per physical unit of product, rather than ad valorem tariffs, per value of product. AVEs estimates by the WTO are reproduced here, but values remain dependent on the methodology chosen, as well as the base period considered, world market prices, unit values (affected by the source of imports and types of tariffs), exchange rates, and cases where no import occurs. For TRQs, the filling rate at the period considered also plays an important role to determine the final AVE.

← 2.  EFTA currently comprises four countries: Iceland, Liechtenstein, Norway and Switzerland.

← 3.  In 2020, the Swiss Government found that 14 of the 63 measures in the first adaptation plan were fully completed, 28 were in advanced implementation, 19 were in the initial phase of implementation, and 2 were on hold.

← 4.  This target is an intermediate milestone for a long-term ambition of the whole population adopting a healthy and sustainable diet by 2050.

← 5.  Switzerland notably commissioned the OECD in 2021 for a study investigating methodologies used to conduct sustainability impact assessments (Sustainability Impact Assessment of Free Trade Agreements – A Critical Review).

← 6.  The food GHG emission footprint, as currently estimated by the Federal Statistical Office website, has declined by 17% between 2000 and 2021.

← 7.  Despite the withdrawal of this practice from landscape quality measures, cultivation strips remain promoted in some cantons through biodiversity networks contributions.