OECD Evaluates Challenges to the Agriculture Sector

OECD Publishes the Agricultural Policy Monitoring and Evaluation 2024 Report

According to the report, the agricultural sector worldwide faces numerous challenges. Agricultural product markets, both domestic and international, continue to be affected by a variety of short and long-term events, including the Russia-Ukraine war, increasing tensions in the Middle East, and the increasing frequency and severity of extreme weather events due to climate change.

While some countries' export restrictions are putting additional pressure on the international trade system, the concentration of farmer protests in many countries reflects the economic, social, and political challenges facing the agricultural sector.

In this context, countries' agricultural policies are also undergoing change, and the importance of practices that will ensure sustainability and productivity growth is increasing.

The report examines 54 countries, where total support for the agricultural sector averaged $842 billion per year in the 2021-2023 period. Agricultural support remained high but declined from its peak in 2021. Of the support provided in this period, $629 billion per year was provided to individual producers.

The majority of the support in this period was seen in the large economies. China accounted for 37% of the total annual support for agriculture, the US 15%, India 14%, and the European Union 13%.

While the growth in productivity practices has been the driving force behind the significant increase in agricultural production in recent years, productivity practices alone are not sufficient to increase production.