OECD Report on Farm Price Supports

Rising commodity prices offset price supports in some countries.

Government support to farmers falls slightly amid higher world food prices

23/10/2007 - Government support to farmers in OECD countries represented 27 % of total farm receipts in 2006, a slight fall from the 29% share the previous year, according to a new OECD report. The drop was due mainly to rising world food prices rather than changes in policies, as less support was provided to prop up domestic prices.

The OECD’s latest Agricultural Policies in OECD Countries: Monitoring and Evaluation says farm support remains high. Nearly US $268 billion were provided to farmers across OECD countries last year, although levels of support varied widely – from 1% of farm receipts in New Zealand to more than 60% in Iceland, Norway, Korea and Switzerland. Crop and livestock prices in OECD countries were on average 21% higher than world market prices.

But some progress is being made in the way support is being provided...(complete article here).