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Agricultural support has changed substantially in both rich and poor countries in recent years. In rich countries, there has been a strong move to decoupled subsidies and a fall in average rates of protection. In developing countries, market price support remains the dominant form of protection and average rates of support have risen -- breaking the traditional pattern of taxing agriculture. Emissions from agriculture and land use change have contributed up to a third of total greenhouse gas emissions, with beef, milk and rice production accounting for more than 80 percent of agricultural emissions. Agricultural support was biased against emission-intensive goods until recent years and is now only slightly biased towards them. Although emission intensities are relatively higher in the developing countries, they have fallen far more rapidly in developing countries than in the rich countries in the past quarter-century, as agricultural productivity has grown in developing countries. Policy reform will be challenging given the strong political-economy support for the current structure of protection. Increasing investments in research and development to raise productivity and lower the emissions intensity of agricultural output would help agriculture and the environment.
Agricultural support has changed substantially in both rich and poor countries in recent years. In rich countries, there has been a strong move to decoupled subsidies and a fall in average rates of protection. In developing countries, market price support remains the dominant form of protection and average rates of support have risen—breaking the traditional pattern of taxing agriculture. Emissions from agriculture and land use change have contributed up to a third of total greenhouse gas emissions, with beef, milk and rice production accounting for more than 80 percent of agricultural emissions. Agricultural support was biased against emission-intensive goods until recent years and is now only slightly biased towards them. Although emission intensities are relatively higher in the developing countries, they have fallen far more rapidly in developing countries than in the rich countries in the past quarter-century, as agricultural productivity has grown in developing countries. Policy reform will be challenging given the strong political-economy support for the current structure of protection. Increasing investments in research and development to raise productivity and lower the emissions intensity of agricultural output would help agriculture and the environment.
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.
Farming for Our Future examines the policies and legal reforms necessary to accelerate the adoption of practices that can make agriculture in the United States climate-neutral or better. These proven practices will also make our food system more resilient to the impacts of climate change. Agriculture's contribution to climate change is substantial--much more so than official figures suggest--and we will not be able to achieve our overall mitigation goals unless agricultural emissions sharply decline. Fortunately, farms and ranches can be a major part of the climate solution, while protecting biodiversity, strengthening rural communities, and improving the lives of the workers who cultivate our crops and rear our animals. The importance of agricultural climate solutions can not be underestimated; it is a critical element both in ensuring our food security and limiting climate change. This book provides essential solutions to address the greatest crises of our time.
Food systems around the world face a triple challenge: providing food security and nutrition for a growing global population; supporting livelihoods for those working along the food supply chain; and contributing to environmental sustainability. Better policies hold tremendous promise for making progress in these domains.
Subsidies are pervasive throughout OECD countries and worldwide. Every year, OECD countries transfer at least USD 400 billion to different economic sectors. Much of this support is potentially environmentally harmful. Reforming environmentally harmful subsidies is a significant policy challenge facing OECD countries. However, untangling and assessing the effects of subsidies on the environment is a complex task. A systematic approach is required to ensure that appropriate policies are developed and the benefits of reform fully realised. This report presents sectoral analyses on agriculture, fisheries, water, energy and transport. It proposes a checklist approach to identifying and assessing environmentally harmful subsidies. It also identifies the key tensions and conflicts that are likely to influence subsidy policy making. Can the political and economic impediments to subsidy reform be overcome? This book concludes with a discussion of politically feasible subsidy reform strategies. FURTHER READING Environmentally Harmful Subsidies: Policy Issues and Challenges (OECD, 2003)
This book takes forward our understanding of agricultural input subsidies in low income countries.
In emerging East Asia, agricultural output has expanded dramatically over recent decades, primarily as a result of successful efforts to stimulate yield growth. This achievement has increased the availability of food and raw materials in the region, drastically diminished hunger, and more generally provided solid ground for economic development. The intensification of agriculture that has made this possible, however, has also led to serious pollution problems that have adversely affected human and ecosystem health, as well as the productivity of agriculture itself. In the region that currently owes the largest proportion of deaths to the environment, agriculture is often portrayed as a victim of industrial and urban pollution, and this is indeed the case. Yet agriculture is taking a growing toll on economic resources and sometimes becoming a victim of its own success. In parts of China, Vietnam, and the Philippines--the countries studied in The Challenge of Agricultural Pollution--this pattern of highly productive yet highly polluting agriculture has been unfolding with consequences that remain poorly understood. With large numbers of pollutants and sources, agricultural pollution is often undetected and unmeasured. When assessments do occur, they tend to take place within technical silos, and so the different ecological and socioeconomic risks are seldom considered as a whole, while some escape study entirely. However, when agricultural pollution is considered in its entirety, both the significance of its impacts and the relative neglect of them become clear. Meanwhile, growing recognition that a "pollute now, treat later" approach is unsustainable--from both a human health and an agroindustry perspective--has led public and private sector actors to seek solutions to this problem. Yet public intervention has tended to be more reactive than preventive and often inadequate in scale. In some instances, the implementation of sound pollution control programs has also been confronted with incentive structures that do not rank environmental outcomes prominently. Significant potential does exist, however, to reduce the footprint of farms through existing technical solutions, and with adequate and well-crafted government support, its realization is well within reach.
This annual report monitors and evaluates agricultural policies in 54 countries, including the 38 OECD countries, the five non-OECD EU Member States, and 11 emerging economies. It finds that the continued rise in agricultural support has been slower than sector growth in recent years, but has been driven to record highs mainly by temporary factors.
In the Middle East and North Africa (MENA) countries price subsidies are common, especially on food and fuels. However, these are neither well targeted nor cost effective as a social protection tool, often benefiting mainly the better off instead of the poor and vulnerable. This paper explores the challenges of replacing generalized price subsidies with more equitable social safety net instruments, including the short-term inflationary effects, and describes the features of successful subsidy reforms.