Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain

This report analyses policies along the agricultural supply chain, in particularsupport measures for fertilisers and for biofuels. It uses the OECD Fertiliser andBiofuel Support Policies Database that covers polices in 48 countries (including the EUand its Members) and assesses the market effects of these policies with a computablegeneral equilibrium model, MAGNET. This report finds that biofuel support policiesgenerate additional demand for feedstock commodities and, therefore, higher incomesfor crop farmers in subsidising and non-subsidising countries. In contrast, thesepolicies increase costs to downstream industries, including livestock farmers, and toconsumers. Fertiliser support policies reduce crop production costs and hence increaseyields, production and incomes for crop farmers in subsidising countries. However,they lower crop farm incomes abroad, while livestock farmers in both country groupsface lower feed costs and, in consequence, lower livestock prices.

OECD Food, Agriculture and Fisheries Papers

Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain

Implications for Agricultural Markets and Farm Incomes