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BookletA multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems
In brief
2021Public support mechanisms for agriculture in many cases hinder the transformation towards healthier, more sustainable, equitable and efficient food systems, thus actively steering us away from meeting the Sustainable Development Goals and targets of the Paris Agreement. This report sets out the compelling case for repurposing harmful agricultural producer support to reverse this situation, by optimizing the use of scarce public resources, strengthening economic recovery from the COVID-19 pandemic, and ultimately driving a food systems transformation that can support global sustainable development commitments. The report provides policymakers with an updated estimate of past and current agricultural producer support for 88 countries, projected up until 2030. The trends emerging from the analysis are a clear call for action at country, regional and global levels to phase out the most distortive, environmentally and socially harmful support, such as price incentives and coupled subsidies, and redirecting it towards investments in public goods and services for agriculture, such as research and development and infrastructure, as well as decoupled fiscal subsidies. Overall, the analysis highlights that, while removing and/or reducing harmful agricultural support is necessary, repurposing initiatives that include measures to minimize policy trade-offs will be needed to ensure a beneficial outcome overall. The report confirms that, while a few countries have started repurposing and reforming agricultural support, broader, deeper and faster reforms are needed for food systems transformation. Thus, it provides guidance (in six steps) on how governments can repurpose agricultural producer support – and the reforms this will take. -
Book (stand-alone)Innovations in financing mechanisms for demand-driven agricultural advisory services
The Chile case, 1978–2014
2018Also available in:
No results found.The Research and Extension Unit (AGDR) of FAO has commissioned a series of case studies on the reform of extension systems in the past decade and the shift towards innovative financing systems for extension. The studies have focused on the relations between the empowerment of farmers and their organizations, their new roles in the advisory systems and the innovative financial mechanisms in extension required to achieve effective pluralistic and demand-led extension and advisory systems, with quality services being relevant for male and female smallholder producers. Four case studies of different modalities of innovative financing mechanisms were undertaken: Danish Agricultural Advisory Services, evolution of the Danish model. The study describes the historic development of the Danish Agricultural Advisory Services (DAAS). This is the case of a national advisory system owned and managed by the farmer organizations and financed with public subsidies combined with farmer/user payments, gradually developed to full user payment. Agricultural Services and Producer Organizations Support programme (PSAOP) from Senegal is the case of reforms towards decentralized demand-led services with structures, procedures and finances for farmers’ demand, negotiation and contracting of advisory services. The farmer organizations were the main drivers of this reform process. Both the supply and demand side are supported with public funding. Financing advisory services for family farmers in Chile. The study describes the programmes of the Institute for Agricultural Development (INDAP) from Chile (1978-2014). The case shows the development of a pluralistic system for extension and advisory services. The system uses competitive grants provided by Government combined with users’ financial contribution to cover the costs of the services. Nariño Dairy Products Cooperative (COLACTEOS) in Colombia is a case of producers’ cooperative-based advisory services as embedded services fully financed through their own processing and marketing activities. A team of advisors is hired by the cooperative for regular services; while other services are contracted on a short term basis. Furthermore, a synthesis was established with a conceptual framework for analysis used to develop a synthesis of the experiences from the four case studies. The synthesis also supplements the cases with a literature review on other cases of similar financing mechanisms and drawsconclusions and recommendations. -
Book (series)Agricultural policies for a sustainable rice supply chain in Ecuador
FAO Agricultural Development Economics Policy Brief 18
2019Also available in:
No results found.The high cost to Ecuador’s national budget of maintaining a minimum guaranteed producer price for rice led to the introduction of a price bracket system in 2017. The minimum support price policy and a complimentary high import tariff were meant to protect small rice producers from competition from world markets and increase their incomes. However, farmers with greater productive capacity are currently accruing the highest income transfers from the guaranteed minimum rice price. Moreover, the policy has led to distortions throughout the marketing chain, only partially meeting its objective of price stability. The introduction of the price bracket system and Ecuador’s new comprehensive agricultural strategy, which takes an agricultural food system approach, represents an opportunity for small farmers to receive the necessary incentives to remain a part of the rural economy. However, more needs to be done to achieve a sustainable rice supply chain like decoupling social protection policies from farm output, diversifying agricultural programs, reforming border protection policy, and a rethinking of public interventions.
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