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
Latest news on PolOpT
29/10/2024
Onil Banerjee and Renato Vargas have recently joined the team to strengthen MAFAP's policy optimization modelling portfolio, focusing their efforts on integrating climate change and biodiversity objectives to the economy-wide tool, while MAFAP Policy Analyst Alethia Cameron has been promoted to Economist to lead the programme's policy monitoring work. 
15/10/2024

The MAFAP programme is currently working to support five agrifood policy reforms in the country.

03/07/2024
The Monitoring, Prioritizing and Optimizing Public Investments in the Agrifood Sector for Greater Socioeconomic Impact in Ghana workshop brought together over 35 representatives from government institutions to engage with policymakers on new economic analyses.
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 
See PolOpT in journals