Policies that distort prices
01/12/2021
540 billion dollars are spent annually on producer support, two-thirds of which distort prices and damage the environment (FAO, UNDP and UNEP, 2021).
FAO, UNDP and UNEP; 2021
FAO, UNDP and UNEP. 2021. A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems. Rome, FAO.
Sectors:
Countries:
Indicators:
Instruments:
- Payments or subsidies to the producer for the acquisition of fixed assets (fixed capital formation)
- Payments or subsidies to the producer based on agricultural production
- Payments or subsidies for the acquisition of variable inputs (eg fertilizers)
- Subsidies to interest rates on agricultural loans
- Support or subsidy for agricultural producer prices
- Support to technological research and development
- Incentives or subsidies for the adoption of good sustainable production practices
- Direct transfers to producers
- Conditional social transfers