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).