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A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems













Read the Summary A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems: In brief


FAO, UNDP and UNEP. 2021. A multi-billion-dollar opportunity  Repurposing agricultural support to transform food systems. Rome, FAO. 




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    A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems
    In brief
    2021
    Public support mechanisms for agriculture in many cases hinder the transformation towards healthier, more sustainable, equitable and efficient food systems, thus actively steering us away from meeting the Sustainable Development Goals and targets of the Paris Agreement. This report sets out the compelling case for repurposing harmful agricultural producer support to reverse this situation, by optimizing the use of scarce public resources, strengthening economic recovery from the COVID-19 pandemic, and ultimately driving a food systems transformation that can support global sustainable development commitments. The report provides policymakers with an updated estimate of past and current agricultural producer support for 88 countries, projected up until 2030. The trends emerging from the analysis are a clear call for action at country, regional and global levels to phase out the most distortive, environmentally and socially harmful support, such as price incentives and coupled subsidies, and redirecting it towards investments in public goods and services for agriculture, such as research and development and infrastructure, as well as decoupled fiscal subsidies. Overall, the analysis highlights that, while removing and/or reducing harmful agricultural support is necessary, repurposing initiatives that include measures to minimize policy trade-offs will be needed to ensure a beneficial outcome overall. The report confirms that, while a few countries have started repurposing and reforming agricultural support, broader, deeper and faster reforms are needed for food systems transformation. Thus, it provides guidance (in six steps) on how governments can repurpose agricultural producer support – and the reforms this will take.
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    Repurposing domestic public support to agriculture 2024
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    This policy brief emphasizes the critical importance of leveraging domestic resources and effectively reallocating subsidies to amplify their efficacy in addressing food crises and fostering the transformation of agricultural food systems. By strategically directing resources within national economies and optimizing existing subsidy frameworks, governments can significantly enhance their capacity to prevent and mitigate food crises while simultaneously advancing sustainable agricultural practices. This approach not only ensures the efficient utilization of available funds but also promotes greater resilience and long-term viability within the agricultural sector.
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    Technical study
    Repurposing agricultural subsidies for sustainable and resilient agrifood systems in the Near East and North Africa region
    Key issues and future agenda
    2024
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    This study analyses the current state of agricultural and food subsidies in countries of the Near East and North Africa (NENA) region and develops policy options for repurposing agricultural subsidies that would lead to a more resilient and sustainable agrifood system. The study suggests that the repurposing of agricultural support in the NENA region countries requires a comprehensive and integrated analysis of the impacts of the current subsidy schemes, and the potential positive and negative impacts of the reform. The analysis should identify the distributional impacts of reforms to prepare for possible resistance and design compensation and complementary measures as needed. A one-size-fits-all approach cannot be adopted. Repurposing agricultural subsidies in each country should be based on comprehensive research and suggested reforms that fit the specific priorities and circumstances of the relevant country and the affected stakeholders.

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