Brussels, Belgium
25 September 2012

EuropaBio welcomes the policy recommendations made by the OECD in its report Agricultural Policy Monitoring and Evaluation published on 19 September 2012. Farm policies need to refocus from market-distorting subsidies to investment in agricultural R&D, technology transfer and innovation in production processes.

“Given the expectations of future demand growth and greater pressure on limited resources, there is a clear opportunity to turn farm policy toward the most pressing policy areas, like boosting innovation across the food and agricultural system” – said Ken Ash, the OECD trade and agricultural director, commenting on the report.

The report shows that international commodity markets and increasing food prices have led to decreased government support to farmers to a record low level of 19% farm gross receipts in OECD countries.

Reacting to the report, the European Commission noted that the EU agricultural sector is still under pressure due to increased input costs. This, combined with increased worldwide demand and environmental challenges, makes it vital for the development of new technologies to increase the level of agricultural output and ecological farming.

The report devotes an entire chapter on Fostering innovation and productivity growth in agriculture. It recognises the biotechnologies as a tool for maintaining biodiversity and a key R&D activity to generate high potential market returns. “Agricultural biotechnologies, like genetically-engineered crops, can provide a solution to increased food production costs”, Carel du Marchie Sarvaas, EuropaBio’s Director for Agricultural Biotechnology commented. “Currently used and newly developed GM crops will create more opportunities to farmers and promote sustainable land-use. Specific enabling policies in the EU should therefore target the development of biotechnologies. More innovation in agriculture will create jobs in the fast growing sector of biotechnology.”

The complete OECD report is available here.

Website: http://www.europabio.org

Published: September 27, 2012