Agricultural subsidies

Ploughing on

The rich world's farmers are still reaping handsome subsidies

Source: www.economist.com

FARMERS are getting by with fewer subsidies in many countries around the world compared with 20 years ago. Yet subsidies still accounted for more than three-quarters of farmers’ incomes in Norway, Switzerland and Iceland between 2007 and 2009. And farm subsidies in the EU made up a slightly greater proportion of farmers' incomes in 2007-09 than two decades beforehand. OECD countries spent $253 billion on farm subsidies in 2009—22% of gross farm receipts, the first increase since 2004. High agricultural commodity prices ensured payments slid, and reach a record low in 2008. Last year, this trend reversed as commodity prices fell.