This report discusses the economic mechanisms by which the hundreds of billions of dollars provided annually in agricultural support contribute to increased emissions, biodiversity loss and soil nutrient imbalances. It also highlights options for alternative support policies and presents real-world examples of improved environmental outcomes stemming from agricultural support removal or reform.

Agricultural support refers to government policies, such as tariffs, price floors, subsidies and investment in knowledge and information systems, that are claimed to address a broad range of issues such as food security, agricultural incomes, risk management, agricultural productivity and preservation of traditional cultures.

The challenge for policy is to enable agricultural production systems that deliver food security while minimising environmental harm. To minimise the impacts of agriculture on the environment it is important to focus on efficient and environmentally sustainable agricultural production; and ensure global support to the agriculture sector does not encourage unnecessary production or incentivise overuse of damaging inputs. 

Key findings

• Current global agricultural support provided by governments leads to inefficiencies in production and consumption, which can lead to environmental harm.
• The most environmentally harmful supported policies cost taxpayers and consumers US$631 billion annually, however over 80% of this is concentrated in just five countries.
• Enabling production where it is most efficient will support food security and reduce global emissions from agriculture.