OECD Food and Agricultural Reviews Innovation, Productivity and Sustainability in Food and Agriculture Main Findings from Country Reviews and Policy Lessons

Markets that function well within a stable regulatory and policy environment are key to improving the productivity and sustainability of the food and agriculture sector. This report contains the main findings and policy lessons gained from a series of wide-ranging country reviews on how government policies can improve sectoral productivity and sustainability through their impact on innovation, structural change, natural resource use, and climate change. Improving the policy environment would require rolling back those policies that distort markets the most and retain farmers in uncompetitive and low-income activities, harm the environment, stifle innovation, slow structural and generational change, and weaken resilience. Agriculture policy should focus instead on measures that facilitate the uptake of technologies and practices that use resources more efficiently and sustainably, and which contribute to reducing greenhouse gas emissions. Of equal importance are: a more collaborative approach, more effective governance systems, the development of long-term strategies, strengthened linkages between national and international actors, and comprehensive and coherent evaluation procedures. Public funding of food and agricultural research is also crucial, and private efforts need to be strengthened, including through public-private partnerships. Finally, improving overall policy coherence would contribute to building trust, and to increasing policy effectiveness at each step of the food and agriculture chain. Foreword Key findings Chapter 1. Main policy lessons from selected country reviews Strengthening the long-term performance of food and agriculture A framework to review policies affecting the food and agriculture sector Further productivity and sustainability improvements are needed in food and agriculture Removing policy distortions and regulatory impediments along the value chain Remove support that most distorts agricultural commodity markets Improve the functioning of input markets Reduce barriers to trade Making the agriculture research and innovation system more responsive to needs Agricultural innovation systems are diverse Governments traditionally play an important role in agricultural innovation systems Agricultural innovation systems are in transition Improve the governance of agricultural innovation systems Simplify research programming to improve effectiveness and transparency Improve complementarity of public funding of agricultural R&D with private investment by focusing on areas with characteristics of public goods Strengthen private contribution to R&D and innovation for food and agriculture Strengthen linkages within the agricultural innovation system and across sectors Facilitate international R&D co-operation Strengthen farm advisory systems to facilitate adoption Address skills need in food and agriculture Ensuring a stable and enabling policy and regulatory environment to facilitate investment Modernise regulations Align policies and regulations towards sustainability improvements Using agricultural policy to strengthen the sector’s long-term performance Improving policy coherence Develop comprehensive strategic plans, including the whole value chain Minimise policy incoherencies Target interventions to the issue at stake Fostering the relevance and impact of country reviews Notes References Chapter 2. Productivity and sustainability challenges for food and agriculture Main challenges and opportunities for food and agriculture Trends in productivity growth Trends in sustainability performance Main knowledge gaps Notes References Chapter 3. Drivers of agricultural productivity and sustainability performance Innovation Structural change Natural resource use and climate change Common drivers for agriculture productivity and sustainability Main knowledge gaps Notes References Chapter 4. Agricultural policy environment Most support to agriculture goes to individual producers Most support to producers is not linked to outcomes Some measures target innovation, structural change, natural resources and climate change General services are key to improving long-term performance of food and agriculture Main knowledge gaps Recommendations on agricultural policies Adopt a food and agricultural system strategy Focus agricultural policy on the sector’s long-term development objectives Strengthen capacity to respond to future challenges and opportunities Better information for better agricultural policies Identify market and policy failures when providing support to producers Reduce agricultural policy distortions Remove impediments to innovation, structural change and sustainable resource use Harness agricultural policy measures to target more precisely productivity and sustainability drivers Provide more specific incentives to innovation and adjustment Strengthen incentives to sustainable use of natural resources Promote farmers’ preparedness and risk management to facilitate future investment Better target investment support to needs Better account for the diversity of the farm population Pursue wider objectives with non-sectoral policy Notes References Chapter 5. Innovation policy and the agricultural innovation system Diversity of actors and systems Governance of agricultural innovation systems Public funding of agricultural R&D Private role in food and agricultural R&D Policy incentives to private investment in R&D and innovation Intellectual Property Rights Support to R&D investment Public-private co-operation for innovation Farm advisory systems International research co-operation Summary of innovation policy indicators Main knowledge gaps Recommendations to improve the agricultural innovation system Improving governance of agricultural innovation systems is key Strengthen linkages within the national innovation system to increase efficiency and responsiveness to needs Simplify research programming to improve effectiveness and transparency Focus public funding of agricultural R&D in areas with public good aspects to improve complementarity with other efforts Strengthen private contribution to R&D and innovation for food and agriculture to increase impact Facilitate international R&D co-operation Strengthen farm advisory systems to facilitate adoption Facilitate knowledge sharing and information dissemination Notes References Chapter 6. General policy environment for food and agriculture Facilitating investment Developing capacities and services Main knowledge gaps Recommendations to improve the general policy environment Improve information on the link between general policies and agriculture to guide decisions Improve the policy and regulatory processes to facilitate investment Ensure non-sectoral polices improve the functioning of agri-food markets and trade Align policies and regulations towards sustainability improvements Develop rural infrastructure and services to improve connection Address labour and skills need in food and agriculture Notes References Chapter 7. Policy coherence in food and agriculture Policy incoherence slows progress towards agriculture productivity and sustainability Incoherencies in general policy goals Incoherencies across policy areas Incoherencies within policy areas Incoherencies in policy approaches Responses to policy incoherence Main knowledge gaps Recommendations to minimise policy incoherence Assess and target the main policy incoherencies. Ensure that no new incoherencies are introduced Encourage synergistic policy plans, build policy bridges and support win-win policy solutions Notes References Annex A. Some concepts and indicators used in the Framework Annex B. Overview of reviewed countries Annex C. Country notes Australia (2015) Brazil (2016) Canada (2015) China (2018) Estonia (2018) Japan (2019) Korea (2018) Latvia (2019) Netherlands (2015) Sweden (2018) Turkey (2016) United States (2016)