Government support to agriculture rose by nearly 15%, or USD 121 billion, between 2023 and 2025, reaching a record high, according to a press release by the OECD. The organization’s new report, released on 2 November 2026, finds that much of this assistance was directed at short-term crisis responses rather than building long-term sector resilience. Total support averaged USD 885 billion per year during the period. Nearly half took forms most likely to distort production and trade. The findings signal the need for policy reform across both OECD and emerging economies.
The OECD Agricultural Policy Monitoring and Evaluation 2026 report covers 56 countries and documents a reversal of a decades-long decline in agricultural support relative to production. Support to the sector climbed from 17.6% to 19.1% of the value of agricultural production between 2023 and 2025. The rise occurred against a backdrop of more frequent and interconnected global shocks with increasing economic impact. Distortive measures include altering market prices, subsidizing inputs, or tying payments to output quantities. Delivery methods differed sharply across country groups.
In many emerging economies, support came mainly through policies that kept domestic agricultural prices above world prices, insulating markets from external shocks. OECD countries relied more on direct government spending, including emergency disaster assistance. Consumers across the countries covered bore a significant share of the cost through higher food prices. Policies maintaining domestic food prices above international levels generated an estimated net cost to consumers of USD 204 billion annually during 2023-25. Additional costs from higher food prices exceeded budgetary assistance provided to consumers.
Investment in research, innovation, and infrastructure has not kept pace with sector needs, as agricultural productivity growth slowed from 1.8% a year in 1991-2000 to 0.8% in 2014-2023. Public investment in agricultural knowledge and innovation systems accounted for just 0.5% of the sector’s production value during 2023-25, compared with 0.9% between 2000-02.
“More support does not always mean better outcomes,” OECD Secretary-General Mathias Cormann said. “Distortive measures are raising costs for families and reducing efficiency. We need to invest in innovation and infrastructure to help farmers produce more with less, and we need to help farmers prepare for the next shock rather than simply compensating them for the last one.”
The report includes more than 150 country-specific recommendations and outlines four key priorities for agricultural policy reform: