OECD Food, Agriculture and Fisheries Papers
NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.
- ISSN: 18156797 (online)
- https://doi.org/10.1787/18156797
Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain
Implications for Agricultural Markets and Farm Incomes
This report analyses policies along the agricultural supply chain, in particular
support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and
Biofuel Support Policies Database that covers polices in 48 countries (including the EU
and its Members) and assesses the market effects of these policies with a computable
general equilibrium model, MAGNET. This report finds that biofuel support policies
generate additional demand for feedstock commodities and, therefore, higher incomes
for crop farmers in subsidising and non-subsidising countries. In contrast, these
policies increase costs to downstream industries, including livestock farmers, and to
consumers. Fertiliser support policies reduce crop production costs and hence increase
yields, production and incomes for crop farmers in subsidising countries. However,
they lower crop farm incomes abroad, while livestock farmers in both country groups
face lower feed costs and, in consequence, lower livestock prices.
Keywords: energy prices, agriculture, farm incomes, fertiliser markets, biofuel markets, computable general equilibrium model, land use, biofuel support policies, quantitative analysis, fertiliser support policies, agricultural markets
JEL:
Q17: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agriculture in International Trade;
D58: Microeconomics / General Equilibrium and Disequilibrium / Computable and Other Applied General Equilibrium Models;
Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy;
Q11: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agriculture: Aggregate Supply and Demand Analysis; Prices;
O13: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products;
Q42: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Alternative Energy Sources
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