OECD report says farm subsidies drop as food prices rise
The Organisation for Economic Co-operation and Development (OECD) finds that government support to farmers dropped in 2006; although the decrease was due mainly to rising prices for agricultural commodities rather than changes to government policies.
The OECD's "Agricultural Policies in OECD Countries: Monitoring and Evaluation", an annual report on farm policies in OECD countries, found that US $268 billion was provided to farmers in OECD countries in 2006. This represented 27% of total farm receipts, down from 29% the previous year.
In the European Union, governments provided 32% of farm receipts, just one percent less than the previous year. But the report does praise the EU's Single Payment Schemes for reducing trade and production distortions.
The United States government provided 11% of farm receipts in 2006, compared with16% in 2005. Price supports for sugar and milk were singled out as needing further reform.
Some of the most generous protection is provided to farmers in Japan and Korea. While Japan is slowly removing price controls, 53% of farm receipts came from government support in 2006.
For information about how to order a copy of "Agricultural Policies in OECD Countries: Monitoring and Evaluation", see: http://www.oecd.org/document/63/0,3343,en_2649_201185_39524607_1_1_1_1,00.html