Identifying Environmentally Harmful Agricultural Subsidies at the International Level

The report examines the environmental impacts of agricultural subsidies, noting that total global support ranges from $610 to $842 billion per year. It argues that while production-linked supports—such as market price support and input subsidies—are often the most harmful, impacts are highly context-specific. The authors propose several frameworks for identifying harmful subsidies, including the use of meta-analyses of farming practices and the Driver-Pressure-State-Impact-Response (DPSIR) model. To address these issues internationally, the report suggests options such as enhanced transparency, the use of 'rebuttable presumptions' to shift the burden of proof to subsidizing countries, and special and differential treatment for developing nations to balance environmental goals with food security and livelihoods.

• Global agricultural support is estimated to be between $610 billion and $842 billion annually, with a significant portion consisting of price-distorting measures that may harm the environment.
• Certain types of agricultural support are identified as more likely to be environmentally harmful, specifically those linked to production, such as market price support, output-based payments, and subsidies for variable inputs like fertilizers and pesticides.
• There is a positive correlation between the amount of agricultural producer support per hectare and the number of species threatened by agriculture per hectare.
• Removing market price support (MPS) can lead to a paradoxical increase in global greenhouse gas emissions because lower prices in protecting countries can raise overall demand, potentially increasing environmental harm elsewhere.
• The report suggests using a 'rebuttable presumption' approach, where a core set of subsidies is deemed harmful unless the subsidizing country can prove the scheme does not cause environmental damage.
• Ruminant livestock production is highlighted as a primary area for reform due to its high emissions intensity and the high share of commodity-specific support it receives, resulting in a high implicit carbon subsidy.
• The report identifies critical trade-offs where environmental reforms may conflict with food security, nutrition, and rural livelihoods, particularly in developing countries.
• To ensure equity, the report recommends special and differential treatment for developing nations, including longer transition periods and exemptions for low-income or resource-poor producers.
• International cooperation is deemed necessary to avoid 'market leakage,' where the removal of subsidies in one country simply shifts harmful production to countries with lower environmental standards.

APA

Forum on Trade, Environment, & the SDGs (2025). Identifying Environmentally Harmful Agricultural Subsidies at the International Level. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-IEG-Report-Agricultural-Subsidies.pdf?dm=1749207802

Chicago

Forum on Trade, Environment, & the SDGs. Identifying Environmentally Harmful Agricultural Subsidies at the International Level. 2025. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-IEG-Report-Agricultural-Subsidies.pdf?dm=1749207802.

Wikipedia

{{cite report |author=Forum on Trade, Environment, & the SDGs |title=Identifying Environmentally Harmful Agricultural Subsidies at the International Level |date=May 2025 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-IEG-Report-Agricultural-Subsidies.pdf?dm=1749207802 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forumontradeenvironmentthesdgs2025identifying, author = {{Forum on Trade, Environment, \& the SDGs}}, title = {{Identifying Environmentally Harmful Agricultural Subsidies at the International Level}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2025}, month = may, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-IEG-Report-Agricultural-Subsidies.pdf?dm=1749207802}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }