Core Insights - The OECD report highlights that global agricultural support policies are at a high level, with most being distorting and misaligned with green transition needs, indicating significant room for improvement [1] Group 1: Agricultural Support Policies - From 2022 to 2024, countries are expected to provide an average of $842 billion annually in positive support for agriculture, with distorting policies like market price support and output-based subsidies dominating, accounting for 66% of total support expenditures [1] - Support policies aimed at promoting green transition are notably weak, with technology innovation and infrastructure support making up only 2.4% of industry value, and agricultural knowledge and innovation systems support at a mere 0.5%, dropping to 0.3% in emerging economies [1] Group 2: Environmental Impact of Current Policies - A vicious cycle in agricultural production is noted, where distorting subsidies lead to higher production, which in turn encourages more inputs, resulting in increased pollution [2] - Current policies in developed countries, such as market price support and unlimited subsidies for fertilizers and energy, exacerbate environmental pressures, including greenhouse gas emissions and biodiversity loss [2] Group 3: Pollution and Subsidy Effects - Input subsidies are identified as a direct cause of pollution, as they encourage higher fertilizer application, leading to soil and water contamination [3] - The reliance on production-based subsidies solidifies a high-emission production system, while insufficient investment in green technologies exacerbates environmental pressures [3] Group 4: Trade and Sustainability Standards - As sustainability becomes a crucial part of trade rules, countries are implementing more environmental requirements for agricultural products, but these measures lack coordination, increasing compliance costs for developing countries and small producers [3] - The lack of unified and effective incentives for emission reduction or environmental improvement may lead to fragmented supply chains and a potential shift of production to countries with lower environmental standards, worsening global environmental pressures [3] Group 5: Trade Barriers and Environmental Policies - Rapid growth in environment-related trade measures is noted, but the lack of coordination may increase trade barriers and reduce the overall effectiveness of environmental policies, potentially leading to insufficient compliant supply chains [4] - Farmers may face increased costs to meet compliance, which could inadvertently raise their agricultural carbon, water, and waste footprints, ultimately deteriorating overall environmental outcomes [4]