AUSTRALIAN farmers receive among the lowest levels of taxpayer support in the industrialised world – $US2.2 billion in government support in 2008 amounting to 6pc of all farm receipt, including programs such as drought funding, research and development and rural infrastructure.
New Zealand farmers receive government support at just 0.8pc of all farm receipts, according to a report in The Australian Financial Review.
The US has significantly cut its farm subsidies in the past two decades – down from 22pc in 1986-88 to 10pc in 2006-08, and is close behind Australia with the third lowest subsidy rates. But the drop in US subsidies was due mainly to firming commodity prices, as some support was triggered only when prices were low.
The report from the Organisation for Economic Co-operation and Development (OECD) added that the Farm Bill the US congress passed last year might lead to subsidies rising, potentially distorting farmers’ decisions.
Over that same period, 1986-88 to 2006-08 the average level of farm support in OECD countries dropped from 37pc to 23pc.
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