Subsidies Rise to 22 Percent Of Rich Country Farm Incomes


A new study by the Organization for Cooperation and Development reports that rich country farm subsidies…

…rose to around 252.5 billion dollars or 22 percent of total farm receipts in 2009.  This compares with a 21 percent share in 2008 and 22 percent in 2007.  The latest rise in support across the OECD countries was due to the easing back of agricultural commodity prices after they hit record highs in 2008.  The falls triggered government programmes aimed at propping up domestic prices or farm income.

Producer Support Estimates as % of gross farm receipts, 2007-09 average

In the US, support to farmers rose to 10% of total farm receipts from 8% last year while in the EU the rise was to 24% from 22%.  In Australia, the ending of exceptional payments linked to the restructuring of the dairy industry reduced the overall share of government support to farmers.

The sharpest rises in support to farmers (in relation to total receipts) last year occurred in Canada, where the PSE rose to 20% from 13% of farm receipts, in Korea (52% from 46%), Norway (66% from 60%) and Switzerland (63% from 57%).  In each of these countries the main cause was increased price support for dairy products.

Go here to for an excellent Reason article explaining how bad farm subsidies are for the environment, consumers, taxpayers, and poor country farmers.

Via International Policy Network.