CHAPTER TWO
Repurposing Agricultural SupportCreating Incentives for Sustainable Food Systems
Rob Vos, Will Martin, and Danielle Resnick
Repurposing current government support to agriculture, such as subsidies to farm outputs, can fund the R&D needed for climate-smart food systems.
KEY FINDINGS & RECOMMENDATIONS
- Agricultural support policies transfer around US$620 billion per year to the farm sector worldwide.
- Support policies based on subsidies and trade barriers are highly distortive to markets and are also regressive, as most support is provided to larger farmers. On balance, the incentives this support creates appear to increase greenhouse gas emissions that contribute to climate change.
- Support provided to the farm sector in the form of subsidies involves budget allocations that can be reallocated. Better outcomes could be achieved if even a small portion of agricultural subsidies were repurposed into investments in R&D dedicated to productivity-enhancing and emissions-reducing technologies. Repurposing would create multiple wins — mitigating global climate change, reducing poverty, increasing food security, and improving nutrition.
- Because current support policies are often politically popular and serve well-organized interests, reform will be difficult, especially since repurposing would need to be internationally coordinated for greatest effect.
- Successful reform will require detailed analysis of winners and losers and thoughtful strategies. Creating constituencies for reform at the national level and in international forums will be essential to build political consensus for concerted global action.
Browse Chapters
Chapter One
Transforming Food Systems
Chapter Two
Repurposing Agricultural Support
Chapter Three
International Trade
Chapter Four
Research for the Future
Chapter Five
Climate Finance
Chapter Six
Social Protection
Chapter Seven
Landscape Governance
Chapter Eight
Nutrition and Climate Change
Chapter Nine
Rural Clean Energy Access
Chapter Ten
Bio-innovations
Chapter Eleven
Food Value Chains
Chapter Twelve
Digital Innovations
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