This report analyses policies along the agricultural supply chain, in particular
support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and
Biofuel Support Policies Database that covers polices in 48 countries (including the EU
and its Members) and assesses the market effects of these policies with a computable
general equilibrium model, MAGNET. This report finds that biofuel support policies
generate additional demand for feedstock commodities and, therefore, higher incomes
for crop farmers in subsidising and non-subsidising countries. In contrast, these
policies increase costs to downstream industries, including livestock farmers, and to
consumers. Fertiliser support policies reduce crop production costs and hence increase
yields, production and incomes for crop farmers in subsidising countries. However,
they lower crop farm incomes abroad, while livestock farmers in both country groups
face lower feed costs and, in consequence, lower livestock prices.
Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain
Implications for Agricultural Markets and Farm Incomes
Policy paper
OECD Food, Agriculture and Fisheries Papers
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