Policy Optimization Tool (PolOpT)
PolOpT is both a process and a state-of-the-art computable general equilibrium model, that supports governments in make better use of their food and agriculture budgets. This policy tool allows to identify how existing resources can be allocated more effectively across policies and subsectors to make progress on key agrifood sector transformation goals, while working within fiscal constraints and, if desired, factoring in environmental sustainability.
With this approach, we can determine optimal budget allocation to coherently boost agrifood gross domestic product, create off-farm jobs in rural areas, lift more rural people out of poverty, make healthy diets less expensive and reduce greenhouse gas emissions from agrifood production.
How does PolOpT work and how is a country involved?
PolOpT has been used in several sub-Saharan African countries and was recently used to provide policy advice to the Nigerian government on its National Agrifood Systems Investment Plan (NASIP) 2026–2027. Currently, results are being considered in the development of Bangladesh's agriculture sector transformation programme, and Mozambique's Plano Estratégico para o Desenvolvimento do Sector Agrário (PEDSA).
Relevant publications
Spending smarter on food and agriculture – Making public spending more effective with FAO's Policy Optimization Tool (PolOpT)
2026
This brochure is about FAO's Policy Optimization Tool (PolOpT) – a tool that uses state-of-the-art policy modelling to help governments make better use of their food and agriculture budgets.
Optimizing public spending allocation to advance CAADP’s agricultural transformation agenda
2026
Sánchez, M.V., Cicowiez, M., Fontes, F.P. & Nakelse, T. 2026. Optimizing public spending allocation to advance CAADP’s agricultural transformation agenda. Food Policy, 144, 103201. https://doi.org/10.1016/j.foodpol.2026.103201
Repurposing Agricultural Budgets With Multiple Objectives and Fiscal Constraints: A Multicriteria Decision-Making Policy Tool Applied to Sub-Saharan African Countries
2026
Sánchez, M. V., Cicowiez, M., Battaglia, L., & Pernechele, V. 2026. Repurposing Agricultural Budgets With Multiple Objectives and Fiscal Constraints: A Multicriteria Decision-Making Policy Tool Applied to Sub-Saharan African Countries. Journal of Agricultural Economics. https://doi.org/10.1111/1477-9552.70053
The opportunity cost of not repurposing public expenditure in food and agriculture in sub-Saharan African countries
2024
Background paper for The State of Food Security and Nutrition in the World 2024. This paper uses an innovative policy optimization tool to show how reallocating existing crop and livestock budgets in six sub-Saharan African countries could boost agrifood GDP, create rural jobs, lift thousands out of poverty, and enable millions to afford a healthy diet.
Optimal allocation of agriculture’s public budget can improve transformation and healthy diets access in Ethiopia
2023
Sánchez, M. V., & Cicowiez, M. 2023. Optimal allocation of agriculture’s public budget can improve transformation and healthy diets access in Ethiopia. Journal of Policy Modeling, 45(6), 1262-1280. https://doi.org/10.1016/j.jpolmod.2023.09.005
Identifying commodity-specific priority investments in selected districts of Uganda
2023
FAO Agricultural Development Economics Technical Study, No. 29. Building on the previous work by the Food and Agriculture Organization of the United Nations (FAO) supporting the identification of priority agricultural sectors and possible locations with high agricultural transformation potential in Uganda, this technical study provides more granular information from Ugandan farmers and district agriculture officers on which investments are needed the most to increase productivity.
Repurposing agriculture’s public budget to accelerate transformation in Ethiopia
2022
This brief summarizes the findings of the FAO Agricultural Development Economics Working Paper 22-04 "Repurposing agriculture's public budget to align healthy diets affordability and agricultural transformation objectives in Ethiopia", belongs to a set of background papers for the 2022 edition of The State of Food Security and Nutrition in the World.
Repurposing agriculture's public budget to align healthy diets affordability and agricultural transformation objectives in Ethiopia
2022
Background paper for The State of Food Security and Nutrition in the World 2022. Agricultural transformation has been ongoing for decades in Ethiopia where the agenda to improve nutrition has also gained momentum. This paper assesses ways in which the government could coherently pursue the objectives of reducing the cost of the least cost healthy diet for Ethiopians and achieving faster inclusive agricultural transformation (IAT).
Optimising policies to achieve agricultural transformation objectives: an application for Ethiopia
2022
Marco V. Sánchez & Martín Cicowiez (2022) Optimising policies to achieve agricultural transformation objectives: an application for Ethiopia, Journal of Applied Economics, 25:1, 765-783, https://doi.org/10.1080/15140326.2022.2056407
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