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Agricultural Policy Monitoring and Evaluation 2023

Adapting Agriculture to Climate Change

image of Agricultural Policy Monitoring and Evaluation 2023

This annual report monitors and evaluates agricultural policies in 54 countries, including the 38 OECD countries, the five non-OECD EU Member States, and 11 emerging economies. It finds that support to agriculture has reached record levels amidst subsequent crises, although the increase in support has been less than the sector’s growth. After COVID-19, governments have taken significant action to limit the impacts of the war in Ukraine on the farming sector and markets.

This year’s report focuses on policies for climate-change adaptation and identifies close to 600 adaptation measures adopted by governments, but notes that more action is required to advance the implementation, monitoring and assessment of adaptation measures. The report also finds that most of the support for the sector comes in forms that reduce rather than enhance the sector’s capacity to adjust to future crises, including climate change. In line with the 2022 OECD Agriculture Ministerial Declaration, the report identifies key actions to focus policy efforts on improving agriculture and the food system’s resilience to successive shocks while also enhancing the sector’s environmental performance and productivity.

English Also available in: French

Iceland

Iceland has seen limited reform to agricultural policies and support remains among the highest in the OECD. The Producer Support Estimate (PSE) was more than three times the OECD average in 2020-22, at 50% of gross farm receipts. Market price support measures account for 47% of producer support, principally tariffs that maintain high domestic prices relative to world prices and cause a large transfer from consumers to agricultural producers. Payments coupled with production factors complement market price support. Output payments for milk producers and largely decoupled payments to sheep meat producers represent most of the remaining support to farmers. About 70% of farm support is potentially most-distorting to production and trade.

English Also available in: French

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