OECD Report Urges Sustainable Reforms in Global Agricultural Support
The Hague, Friday, 31 October 2025.
The OECD highlights that $840 billion annual agricultural support often distorts markets and lacks focus on innovation and environmental goals, urging alignment with sustainability initiatives.
Global Agricultural Support: An Overview
According to the latest OECD report, global agricultural support reached an annual average of USD 842 billion between 2022 and 2024, marking a significant increase from previous years. This support, spread across 54 countries, is primarily directed towards individual farmers, with 73% of the funds allocated in this manner. However, the OECD cautions that much of this financial aid distorts markets rather than fostering innovation or addressing environmental challenges [1][2][3].
The Need for Sustainable Innovation
The report indicates that only a small fraction of agricultural support, approximately 0.5%, is invested in agricultural knowledge and innovation systems. This is deemed ‘worryingly little’ by the OECD, especially as the need for sustainable practices becomes more pressing. Furthermore, only about 5% of total support is directed toward voluntary environmental measures, which the OECD states are insufficient for meeting international climate and biodiversity objectives [1][4].
Challenges in Aligning Policies
The OECD emphasizes the importance of aligning agricultural policies with environmental objectives to avoid unintended trade barriers. Notably, the report highlights that nearly 60% of recent trade-related environmental measures have been introduced since 2018. Countries like India have allocated up to 95% of their farm support to the most market-distorting policies, whereas nations such as Australia, Chile, and the United States maintain this share below 1% [1][3][5].
Recommendations for Policy Reform
In its recommendations, the OECD calls for a shift away from price support and input subsidies towards investments in knowledge, innovation, and sustainability. This realignment is crucial for the implementation of the European Union’s Common Agricultural Policy and the development of sustainability standards in trade. The Dutch government, through representatives like Jochem Wiers, acknowledges the urgency of these reforms, stressing the need for smarter spending to enhance innovation and sustainability in agriculture [1][4].