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OECD - Ageing And Employment Policies: The Arable Crop Sector (Agriculture, Trade and the Environment)

The objective of this study is to improve understanding of the linkages between agriculture, trade and the environment in OECD countries by examining how they relate to the arable crop sector (grains, rice and oilseeds). Three of the main issues involved are: the environmental impacts of agricultural support measures and the consequences of further trade liberalisation; the trade impacts of policy measures to address environmental issues in agriculture; and the characteristics of policies that can best achieve environmental objectives in ways that are compatible with multilateral trade and environmental agreements.

This study continues the analysis of agriculture, trade and environment linkages by the OECD Joint Working Party on Agriculture and the Environment. It is one of three studies carried out under the Analysing Approaches towards a more Sustainable Agriculture component of the 2003-04 Programme of Work of the OECD’s Committee for Agriculture. Two earlier studies examined the pig sector and the dairy sector (OECD, 2004a; 2003f). The arable crop sector provides a good case study for an analysis of these linkages. Farming systems vary. In some cases crops are grown on extensive areas of land, while in others the land is used much more intensively, with varying levels of input use, mechanisation and monoculture, and, consequently, with different environmental effects. There is wide variation in the form and level of support, including trade measures, provided to arable crop producers across OECD countries, between different arable crops, and over time. In addition, a number of OECD countries are reforming their policies and the arable crop sector features prominently in such reforms. Moreover, arable crops farmers are affected by a plethora of agri-environmental policies. This diversity of policy experience provides a rich variety of material to be examined and compared.

The study was carried out in the Policies and Environment Division of the Directorate for Food, Agriculture and Fisheries, with Dimitris Diakosavvas as the principal author. Valuable contributions were provided by consultants Alison Burrell (Chapter 5), Marino Tsigas (Chapter 6) and Dave Ervin (Chapter 7). The US Economic Research Service, and Agriculture and Agri-Food Canada undertook the quantitative analysis reported in Section 6.3. Françoise Bénicourt and Theresa Poincet provided secretarial support, while Véronique de Saint-Martin assisted with statistical work. Colleagues in the OECD Secretariat, particularly Wilfrid Legg, Hsin Huang and Joe Dewbre (GTAP analysis), and Peter Kearns from the Environment Directorate (transgenic crops section), and Delegates from member countries provided many useful comments.

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