Government support for agriculture has climbed to a record high, but much of the assistance continues to distort markets and trade rather than strengthen the sector's ability to withstand future challenges, according to a new report from the Organization for Economic Co-operation and Development (OECD).
Released Monday, the OECD Agricultural Policy Monitoring and Evaluation 2026 report found that global agricultural support increased by US$121 billion, or nearly 15%, between 2023 and 2025.
Across 56 countries surveyed, total support averaged US$885 billion annually during the three-year period, with nearly half delivered through measures considered particularly distortive, including market price supports, input subsidies and payments tied to production.
Agricultural support also increased relative to production values, rising from 17.6% to 19.1%, reversing a decades-long downward trend.
The OECD said government approaches differed considerably. Emerging economies generally relied on policies that maintained domestic agricultural prices above world market levels, while OECD countries placed greater emphasis on direct spending, including emergency disaster assistance.
"More support does not always mean better outcomes," OECD Secretary-General Mathias Cormann said ina release, warning that distortive policies can increase consumer costs while reducing economic efficiency.
The report estimated that policies keeping domestic food prices above international levels imposed a net annual cost of US$204 billion on consumers during 2023-25.
The OECD also raised concerns about insufficient investment in long-term agricultural productivity.
Annual agricultural productivity growth slowed from 1.8% during 1991-2000 to just 0.8% during 2014-2023. Meanwhile, public investment in agricultural knowledge and innovation systems represented only 0.5% of production value in 2023-25, down from 0.9% in 2000-02.
The organization urged governments to shift spending toward research, innovation, infrastructure, and improved risk-management programs rather than relying heavily on short-term crisis assistance.
The report includes more than 150 country-specific recommendations, emphasizing reduced trade distortions, stronger resilience to economic and environmental shocks, and better alignment of agricultural policies with sustainability objectives.
