Governments have spent slightly less money directly or indirectly on agriculture since 2021. This is evident from a study by the OECD. China spends by far the most on agriculture, followed at a considerable distance by the US, the EU and India. The organisation is critical of where and how these subsidies end up. Public money should be directed more towards innovation and sustainability.
The OECD (Organisation for Economic Co-operation and Development) estimated that in the period 2021 to 2023, the 54 OECD countries spent an average of $842 billion per year to support the agricultural sector. China accounted for 37% of that. The US, India and the EU spent 15%, 14% and 13% of that respectively.
More with less
According to the OECD, 12,6% of the total amount of subsidies was spent on general services, such as innovation, biodiversity and infrastructure. Since 2020, that percentage has been stable, but at the beginning of this century, around 16% of the budget was spent on general services. Innovation is precisely the key to sustainable productivity growth, the ability to produce more with less and without putting a greater burden on the environment, according to the OECD.
Individual farmers have received an average of $628 billion. More than half ($334 billion) of this reaches the farmer through market regulation. Prices are then kept artificially high compared to the world market. Due to relatively high prices on the world market since the war in Ukraine, this item will be 2021% lower between 2023 and 8. Direct income support averaged $294 billion according to the OECD and fell by 10% in the reference period.