OECD study tells of rising agriculture subsidies in some developing countries; overall levels remain low
The Organisation for Economic Co-operation and Development (OECD) has released a report which states that agricultural subsides are rising in certain developing countries, although overall subsidy levels remain relative low in these countries compared to wealthier OECD nations.
Agricultural Policies in Non OECD Countries: Monitoring and Evaluation 2007, released in part March 15, looked at government support to agriculture in eight non-OECD developing nations, including Brazil, India, China and Russia.
Like in developed countries, market price supports (MPS) represented the largest category of subsidies among the countries studied. The OECD study found that "while OECD countries generally reduced MPS during 2003-05, the levels of MPS in the non OECD countries under review have generally increased or remained unchanged."
Looking at estimates of government support as a percentage of gross farm receipts, the study found that for the period between 2001 and 2003 the countries examined provided agricultural subsidies at levels well bellow the average in the developed OECD nations. In particular subsidies in Brazil and China were found to be around 5% and 6% of gross farm receipts, compared to a figure of 30% for OECD countries.
Highlights of the study can be found at the OECD's website at: http://www.oecd.org/document/5/0,2340,en_2649_37401_38271429_1_1_1_37401,00.html#TOC.
The full publication of the study is expected to be available some time in May.