Monitoring and Analysing Food and Agricultural Policies

Policy Optimization Tool (PolOpT)

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What is PolOpT?

The Policy Optimization Tool (PolOpT) is a state-of-the-art policy-modelling instrument developed by development economists in FAO’s Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme.

It helps governments optimize the allocation of their public spending across agrifood policies and commodities (or subsectors) to achieve stronger socioeconomic and environmental outcomes. By analysing existing expenditure and identifying more effective allocations, PolOpT guides countries toward smarter, more impactful use of limited resources.

Through country-specific economy-wide modelling calibrated together with governments, policymakers can be given a set of alternative budget scenarios, weighing agricultural, economic, social and environmental priorities within real fiscal constraints to find the most coherent and efficient spending mix.

What problem is PolOpT helping to solve?

Government spending on food and agriculture remains limited, particularly in low- and lower-middle-income countries. Competing priorities – health, education, infrastructure – stretch budgets thin, and inefficiencies on how resources are allocated reduce the impact of every dollar spent.

At the same time, governments are trying to pursue multiple goals: the Sustainable Development Goals, climate and biodiversity commitments, and national development priorities.

PolOpT can support them in aligning these objectives within a smarter, optimal allocation of their national budget for greater impact.

What outcomes could come from leveraging PolOpT to optimize public spending?

With PolOpT, countries stand to get more more impact and policy coherence from the same budget – driving economic, social, and environmental progress together by, for example:

📈 Boosting agrifood GDP

💼 Creating off-farm jobs in rural areas

👩‍🌾 Lifting more rural people out of poverty

🥦 Making healthy diets affordable for more people

🌱 Reducing carbon dioxide (CO₂) emissions

🌾 Using less land for agrifood production

How would overall spending change?

And how would spending on crops and livestock change?

What are the benefits of making these changes?

What about the environment?

PolOpT now adds environmental objectives into the mix. In addition to the four socioeconomic goals above, the tool factors in environment and climate goals to show how optimized spending can bring down carbon dioxide (CO₂) emissions and use less land for agrifood production, making way for reforestation efforts and ecosystem recovery.

How does PolOpT work and how is a country involved?

Five years in the making

Watch the video explainer
All about agrifood policy prioritization in 1 minute with Marco V. Sánchez
06/05/2024

Find out in this 1-minute video with Agrifood Economics and Policy Deputy Director Marco V. Sánchez how the MAFAP Programme is partnering with countries...

Latest news on PolOpT
12/11/2025
Mission builds momentum in Kigali with key ministries and amplifies regional awareness of PolOpT at the Africa Network of Agricultural Policy Research Institutes (ANAPRI) 2025 Stakeholder's Conference.
02/10/2025
At the Collaborative Partnership on Forests event, FAO highlights how optimizing government spending on food and agriculture can also support land restoration efforts and sustainable land management across Southern Africa.
01/10/2025
High-level meetings introduce FAO’s Policy Optimization Tool (PolOpT) in Maputo.
Find out more in the PolOpT brochure
Spending smarter on food and agriculture – Making public spending more effective with FAO's Policy Optimization Tool (PolOpT). Second Edition, 2025
2025

This is the new, second edition brochure on FAO's Policy Optimization Tool (PolOpT) updated in 2025.

Meet the developers

Marco V. Sánchez, PhD

Marco V.  Sánchez
Deputy Director, Agrifood Economics and Policy Division and OiC of the MAFAP programme
[email protected]

 

Martín Cicowiez, PhD

Martin Cicowiez headshot
Senior Economist, Agrifood Economics and Policy Division
[email protected]
See related publications 
The opportunity cost of not repurposing public expenditure in food and agriculture in sub-Saharan African countries – Background paper for The State of Food Security and Nutrition in the World 2024
20/12/2024

Repurposing public support to food and agriculture has gained significant global attention. In this paper, an innovative policy optimization modelling...

Identifying commodity-specific priority investments in selected districts of Uganda
10/05/2023

Building on the previous work by the Food and Agriculture Organization of the United Nations (FAO) supporting the identification of priority agricultural...

Repurposing agriculture's public budget to align healthy diets affordability and agricultural transformation objectives in Ethiopia
08/12/2022

Agricultural transformation has been ongoing for decades in Ethiopia where the agenda to improve nutrition has also gained momentum. This paper assesses...

FAO Agricultural Development Economics Policy Brief
09/08/2022

This brief summarizes the findings of the FAO Agricultural Development Economics Working Paper 22-04 "Repurposing agriculture's public budget to align...

See PolOpT in journals