A report from the OECD is calling on governments around the world to direct a greater proportion of their financial support for the agricultural sector into innovation.
The report: OECD Agricultural Policy Monitoring and Evaluation 2024 said that on average, public support for the agricultural sector stood at $842 billion between 2021 and 2023 with around 12.6% of this being made available for innovation, biosecurity or infrastructure. While the level of support in these three areas has been stable since 2020, the share is well below the 16% seen at the beginning of the 21st century. “These services are key elements in countries’ efforts towards sustainable productivity growth – the ability to produce more with less while reducing demands on the environment,” the report says.
The report argues that re-directing financial support to encourage innovation by investing in R&D, supporting research institutions and providing targeted incentives to producers to develop and adopt new production methods are beneficial steps.
“Government efforts towards sustainable productivity growth in agriculture are a positive step forward and can help to future-proof the sector. However, overall levels of farm subsidies remain high, and much of it is counter-productive to these key objectives. Smart reforms are the key to further progress” OECD Secretary-General Mathias Cormann commented.
Policy reforms suggested by the OECD to help governments meet the goal of increased innovation includes: increasing the share of producer support that is linked to environmentally sustainable production practices; targeting innovation systems towards the combined objective of improved productivity and improved environmental performance; and phasing out the potentially most distorting forms of support.
Governments should reduce the negative environmental impact from agricultural support by identifying and addressing environmentally harmful measures and reorienting agricultural support towards "environmentally beneficial measures, agricultural knowledge and innovation systems, biosecurity services and key physical and digital infrastructure," the report said.
It urged governments: "Increase the share of producer support that is linked to environmental practices and make sustainable management and use of natural resources a core part of agricultural policy. Use results-based policies and continuously monitor, measure and evaluate them to improve their effectiveness,"
The report notes that considering the ongoing global instability, agricultural policies around the world have boosted the sector’s capacity to respond to challenges aiming to ensure that food systems are fit for the future.
Looking at policies to support sustainable agriculture across individual countries, the report notes in relation to the UK: “The UK Government views R&D as essential to identifying, developing, and scaling up technologies that will transform agriculture and horticulture into productive, sustainable, and low-carbon industries that can help to meet the challenges of climate change. The UK Government has invested extensively in farmer-led innovation to boost productivity sustainably, and to bring together farmers and research communities to address food system challenges.”
The report highlights the Farming Innovation Programme which is in operation in England. Established in 2021, the £270 million initiative provides funding to develop new, innovative methods and technologies that benefit farmers in England such as feed additives, vertical farming, robotics and automation, novel breeding, genetic technologies, and alternative proteins.
Further reading:
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