A large proportion of government support to agriculture does not reach the food producers who need it most, according to a new Organisation for Economic Cooperation and Development (OECD) report.
It claims that most subsidies are inefficient at providing increased income for farmers and distort production and trade. The report, Farm Household Incomes in OECD Countries, says that because most support is production-based, the bulk of it goes to larger richer farms.
Also, regarding market price supports, it estimates that only 25% of the funding actually boosts the incomes of primary food producers. As a result, it is through non-agricultural wages and salaries, investments and social payments that farm incomes are maintained, said the OECD.
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