Agricultural support reached $950 billion in 2025 across the 56 countries covered by the latest report from the Organisation for Economic Co-operation and Development (OECD), representing an increase of almost 15% compared with 2023.
The OECD’s annual review of agricultural policies highlights a significant reversal of the previous trend, particularly in emerging and developing economies. As a share of agricultural production, support increased from 17.6% in 2023 to 19.1% in 2025, returning to almost the same level recorded in 2008.
However, the scale and nature of agricultural support vary considerably between countries.
China drives much of the increase
Emerging economies account for a growing share of both global agricultural production and agricultural support. The countries in this group represented 67% of production and 58% of the support covered by the OECD analysis.
China stands out among them. Between 2023 and 2025, the various forms of agricultural support represented 13.5% of farmers’ gross receipts, almost three times the level recorded in the country in 2000-2002.
High levels of support are also recorded in several other countries. Agricultural assistance accounted for more than 35% of farmers’ gross receipts in Japan and more than 40% in South Korea, Norway and Switzerland. Iceland recorded the highest level, at 52%.
EU support remains above the OECD average
In the European Union, the relative importance of agricultural support has declined significantly since the beginning of the century. Support accounted for almost 30% of farmers’ gross receipts in 2000-2002, compared with 17.4% in 2023-2025.
Despite this decline, the EU remains above the OECD average, which stood at slightly below 13% over the same period.
The situation in the United States is different. Agricultural support represented around 8% of farmers’ gross receipts, compared with almost 20% at the beginning of the century.
Concerns over market-distorting support
The OECD also draws attention to the composition of agricultural support. Around half of total support comes through mechanisms that raise or subsidise agricultural prices.
According to the OECD, these measures can hinder farmers’ ability to adapt to changing production conditions and market signals, while also creating distortions in global agricultural markets.
At the other end of the spectrum are countries such as India, Vietnam and Argentina, where domestic agricultural prices are in some cases kept below international levels, effectively benefiting consumers rather than producers.
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The OECD argues that agricultural policy needs to become more predictable and focused on the long term as the sector faces increasingly interconnected global challenges, including geopolitical tensions, market volatility and growing vulnerabilities across food systems.
The organisation warns that public authorities are too often responding to successive crises through short-term corrective measures rather than implementing longer-term strategies.
Agricultural productivity growth is slowing
The report also highlights the slowdown in agricultural productivity. Growth in total factor productivity declined from an annual average of 1.8% between 1991 and 2000 to 0.8% between 2014 and 2023.
The OECD links this slowdown, among other factors, to the relative decline in investment in general services for agriculture, including infrastructure such as irrigation, as well as research and innovation.
Investment in these areas represented 2.4% of agricultural production in 2023-2025, compared with 4.6% in 2000-2002.
Limited environmental conditionality
The OECD also highlights the limited environmental component of agricultural support. Only 5.7% of agricultural support across the countries covered by the study was conditional on farmers implementing environmental measures.
A further 15% of support was linked to compliance with regulations or additional standards.
The findings point to the need for agricultural policies to evolve beyond short-term income support and crisis responses, with greater emphasis on productivity, resilience, innovation and environmental performance.
For the OECD, the challenge is to ensure that public support helps farmers adapt to structural changes while strengthening the long-term competitiveness and sustainability of agricultural production.
