According to an OCED Report, the Government support to agriculture in
OECD countries fell to 18% of total farm receipts in 2010, a record low linked
to high commodity prices.
The
report states that support to producers stood at $227 billion (EUR 172 billion)
in OECD countries in 2010, confirming a trend toward falling farm support.
Agricultural Policy Monitoring and Evaluation 2011 points out that most
government support is still given in ways that distort production and trade
while doing relatively little to improve productivity and
competitiveness.
Support levels vary enormously among OECD countries.
Over the 2008-10 period, New Zealand had the lowest level of support to farm
receipts (PSE%), at just 1% of farm income, followed by Australia (3%), and
Chile (4%). The United States (9%), Israel and Mexico (12%), and Canada (16%)
were also below the OECD average.
The
European Union has reduced its level of support to 22% of farm income, but
remains above the OECD average. At the other end of the scale, support to
farmers remains relatively high in Korea (47%), Iceland (48%), Japan (49%),
Switzerland (56%) and Norway (60%).
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