Policies for the Future of Farming and Food in the European Union applies the OECD Productivity, Sustainability and Resilience (PSR) analytical framework along with the latest data from the OECD Agri-Environmental Indicators to benchmark the sustainable productivity performance of the EU’s agricultural sector and to identify the main challenges ahead.

Spain has a dynamic and competitive agro-food sector. However, higher productivity has not always reduced environmental pressures. Policies for the Future of Farming and Food in Spain undertakes a thorough examination of the Spanish agro-food sector.

Norway is performing unevenly across its four agricultural policy objectives. While Norway enjoys a high level of food security and is meeting its aim of maintaining agricultural production across the country, both environmental performance and the efficient creation of value added along the food chain are compromised by support policies linked to production levels.

The Netherlands has built an agricultural sector that is a world leader in productivity and competitiveness. Policies for the Future of Farming and Food in the Netherlands takes stock of the current situation in the agriculture sector.

Food systems around the world face a triple challenge: providing food security and nutrition for a growing global population; supporting livelihoods for those working along the food supply chain; and contributing to environmental sustainability. Better policies hold tremendous promise for making progress in these domains.

This annual report monitors and evaluates agricultural policies in 54 countries, including the 38 OECD countries, the five non‐OECD EU Member States, and 11 emerging economies. It finds that despite some modest declines in recent years, support to agriculture has remained close to recent historical highs. While changes in support have been limited, agricultural policies have been both reactive and proactive, boosting the sector’s capacity to respond to current challenges while aiming to ensure that food systems are fit for purpose as future conditions evolve. This year’s report focuses on policies fostering sustainable productivity growth in agriculture. Governments are applying a large variety of approaches to improve productivity while preserving natural resources and reducing agricultural greenhouse gas emissions. The report notes, however, that clearly defined targets related to sustainable productivity growth and measurable indicators of progress are important to ensure that policies achieve their stated objectives. The report also notes that making more effective use of producer support to promote innovation and environmental sustainability on the farm, and refocusing overall support towards targeted R&D, can better leverage public spending to deliver public goods and sustainable productivity growth. In line with the 2022 OECD Agriculture Ministerial Declaration, the report identifies a seven-point policy agenda for making agriculture more sustainable, productive and resilient, and for improving the effectiveness and efficiency of agricultural support and markets.

The European recovery has been disrupted since the onset of Russia’s war of aggression against Ukraine. Co-ordinated and timely policy action helped avoid a severe downturn, but the near-term outlook is clouded by uncertainty and downside risks. Monetary and fiscal policy need to become sufficiently restrictive to reduce underlying inflationary pressures durably.