FarmPolicy

January 29, 2020

OECD: Support to Agriculture at Historic Lows

Categories: Farm Bill

A news release today from the Organisation for Economic Co-operation and Development (OECD) stated that, “Government support to agriculture in OECD countries fell to 19% of total farm receipts in 2011, a record low driven by developments in international commodity markets, rather than by explicit policy changes, according to the latest version of an annual OECD report.

“Support to producers stood at $252 billion (EUR 182 billion) in OECD countries in 2011, confirming a longstanding trend toward falling farm support. While Agricultural Policy: Monitoring and Evaluation 2012 points to a generalised move away from support directly linked to production, it finds that support which distorts production and trade still represents about half of the total.”

The release noted that, “The new report shows that support levels still vary widely across OECD countries. Over the 2009-11 period, New Zealand had the lowest level of support, at just 1% of farm income, followed by Australia (3%), and Chile (4%). The United States (9%), Mexico (12%), Israel (13%) and Canada (16%) were also below the OECD average (20%).

“The European Union has reduced its level of support to 20% of farm income. At the other end of the scale, support to farmers remains relatively high in Iceland (47%), Korea (50%), Japan (51%), Switzerland (56%) and Norway (60%).”

Today’s update also included the following graph (click on graph for full view).

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Farm Bill Issues; Ag Economy; and, Trade

Farm Bill Issues

In an interview yesterday on the AgriTalk radio program with Mike Adams, House Agriculture Committee Member Tim Huelskamp (R, Kan.) indicated that consideration of the Farm Bill was headed for the lame-duck session of Congress.  Rep. Huelskamp, a first-term lawmaker “who won the seat of retiring GOP Rep. Jerry Moran” (Almanac of American Politics, 643) noted that, “we just received some information from Agriculture Committee staff saying we will not be considering an extension next week…we’ve got so many things left to do, it looks like all of them will be waiting until after the election.”

Rep. Huelskamp went on to say that nutrition spending, and in particular food stamps (SNAP program) was an issue where there was the most disagreement between the White House, Senate and House of Representatives, and he added that he thought the Farm Bill should be extended for one-year.

Mary Kay Thatcher, the Senior Director of Congressional Relations at the American Farm Bureau Federation, was also a guest on yesterday’s AgriTalk program and noted that Farm Bill renewal, or extension, in a lame-duck session could be influenced by election related variables such as who wins the presidency and which party controls the Senate.

Audio clips from both Rep. Huelskamp and Ms. Thatcher from yesterday’s AgriTalk show have been posted here at FarmPolicy.com.

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