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Repurposing domestic public support to agriculture

Year of publication 2024

Place of publication Rome, Italy ;

Pages 14 p.

Author FAO

Publisher FAO ;

Product type Policy brief

Synopsis (short abstract) 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.

Cite this content as:

FAO. 2024. Repurposing domestic public support to agriculture. Rome.

https://doi.org/10.4060/cd0491en

Language English

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    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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    The analysis presented in this report examines the impacts of repurposing food and agricultural fiscal support and border support on the cost and affordability of healthy diets and several other key socioeconomic, nutritional and climate indicators. The impacts are estimated at the global level, as well as for various income groups and geographic regions. Scenarios include repurposing fiscal support to producer support targeted to high-priority foods (those where current levels of consumption are below that of recommended levels) and to consumer subsidies targeting high-priority foods.
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