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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

Mexico

Mexico’s Producer Support Estimate (PSE) for 2020-22 was equal to 11.3% of gross farm receipts, about a third of that in 1991-93 (31%) and lower than the OECD average. Although the PSE is relatively low, it mainly comprises potentially most-distorting forms of support. Market Price Support (MPS) and payments based on output and input subsidies decreased over the past 20 years from 77.9% in 2000-02 to 68.9% in 2020-22. While trade liberalisation and domestic policy reforms in the 1990s reduced these forms of support, MPS increased again after 2016. The ratio of producer to border prices (National Protection Coefficient, NPC) is 1.07, suggesting that domestic prices are an average 7% higher than those in international markets. Single Commodity Transfers (SCT) are highest for sugar, milk, poultry, and rice.

English Also available in: French

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