![\"\"](\"https:\/\/renewable-carbon.eu\/news\/media\/2022\/11\/image-8.jpeg\")
In his opening remarks, OECD secretary-general Cormann said that globally, governments provide more than $800 billion a year in subsidies and other support to the agricultural sector while only 13% of that support goes to investments in innovation.<\/p>\n\n\n\n
\u201cInstead, too much of this support is inefficient in transferring income to farmers inequitably by benefitting larger scale farmers more and too often environmentally harmful,\u201d he said.<\/p>\n\n\n\n
Cormann urged OECD member countries to \u201cchange this trend by phasing out distortive subsidies and redirecting public spending\u201d towards more sustainable and resilient agriculture and food systems.<\/p>\n\n\n\n
He also called to \u201ckeep the markets open and transparent,\u201d which involves eliminating export restrictions.<\/p>\n\n\n\n
Contacted by EURACTIV, Damien O\u2019Connor, New Zealand\u2019s agriculture minister and co-chair of the OECD agriculture ministerial meeting, said that he will \u201calways advocate for reform of agricultural subsidies that contribute to inefficient production, wasteful emissions and distorted market prices.\u201d<\/p>\n\n\n\n
Though New Zealand doesn\u2019t have a subsidy programme for farmers, he said \u201cthat countries are taking their own approach to this\u201d and \u201care becoming increasingly aware that harmful agricultural subsidies are detrimental to the global environment.\u201d<\/p>\n\n\n\n
The European Union has one of the world\u2019s largest farming subsidy programmes, with its \u20ac270 billion Common Agricultural Policy (CAP). The CAP has historically come under criticism during trade talks with third countries for being too protectionist.<\/p>\n\n\n\n
In a recently published report<\/a>, the OECD blasted<\/a> the CAP for not delivering on green goals, despite the bloc\u2019s agricultural spending for climate action being high. <\/p>\n\n\n\n The report compared agricultural policies of 54 countries, highlighting other states in which financial support is not effectively targeted towards climate action in the agricultural sector.<\/p>\n\n\n\n The CAP\u2019s green architecture was reformed in 2021 in order to favour \u2018greener\u2019 farming practices through the so-called eco-schemes. However, according to July\u2019s OECD report, voluntary incentive schemes such as eco-schemes are not enough, and the EU will need to price agricultural emissions.<\/p>\n\n\n\n The final declaration signed by OECD ministers on 4 November also calls on countries to assess \u201cthe effectiveness and efficiency of agricultural policies to encourage improved environmental outcomes, including by examining environmentally harmful and beneficial subsidies.\u201d<\/p>\n\n\n\n