Farm Household Income Issues and Policy Responses

High levels of support to the agricultural sector in OECD countries have raised average incomes, although there are still wide disparities by farm size, type and region and a higher incidence of low income among farm households. However, the great bulk of this support is still delivered through mechanisms that distort production and trade and are inefficient in generating increased net income for farmers. This report reviews the farm household income levels, discusses the influence of agricultural, tax and social security policies on them, and examines the effectiveness of commonly used policy interventions. It concludes that budgetary payments which are separated from agricultural activity and targeted to farm households that need them would transfer income much more efficiently.Organisation for Economic Co-operation and Development Staff is the author of 'Farm Household Income Issues and Policy Responses' with ISBN 9789264099654 and ISBN 9264099654.