Agricultural Policies in OECD Countries 2009

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Overall support to farmers in OECD countries has been declining. In 2008, it was 21% of farmers' gross receipts, down from 22% in 2007 and 26% in 2006. This is the lowest level since the mid-1980s. This report shows that the decline has largely been due to a narrowing of the gap between domestic and world agricultural commodity prices. Progress has been made in decoupling support from production, but production-linked support is still significant. There are wide variations in the levels and composition of support across countries.The report also focuses on the impacts of the current financial and economic crisis on agriculture, and the policy responses. Agriculture is expected to fare better than many other sectors. It has a relatively smaller financial exposure, demand is less sensitive to income falls, and the existing set of support policies in many countries can dampen the impact of the crisis. Governments are facing tighter fiscal conditions, which is likely to prompt further review of support policies, including for agriculture. The 2008 United States Farm Act, the Health Check of the European Union's Common Agricultural Policy and the new Growing Forward policy framework in Canada are also reviewed in the report. A special feature in the report focuses on agri-environmental policies in OECD countries.This report is a unique source of up-to-date estimates of support to agriculture. It provides an overview of agricultural support in the OECD area, complemented by individual chapters on agricultural policy developments in all OECD countries. Data for the calculations of support are available on line at www.oecd.org/tad/support/psecse.Agricultural Policies in OECD Countries: Monitoring and Evaluation is published every other year, alternating with Agricultural Policies in OECD Countries: At a Glance.