By Brandon Moss

Governments worldwide are increasing financial support to agriculture as farmers face rising production costs, extreme weather and geopolitical disruptions. However, the Organisation for Economic Co-operation and Development (OECD) warns that insufficient funding is being directed towards long-term agricultural productivity and resilience.

According to its latest report covering 56 countries, government support for agriculture exceeded $950 billion in 2025, representing an increase of nearly 15 per cent compared with 2023.

The increase was largely driven by price support measures, particularly in emerging economies, as governments responded to disruptions linked to conflicts in Ukraine and the Middle East, extreme weather and rising food prices.

However, OECD Secretary-General Mathias Cormann cautioned that increased agricultural support does not necessarily produce better outcomes, arguing that some interventions distort markets and increase costs for consumers.

Agricultural Productivity Growth Slows

The OECD highlighted a concerning slowdown in global agricultural productivity growth.

Annual productivity growth declined to approximately 0.8 per cent during 2014–2023, compared with 1.8 per cent between 1991 and 2000.

The organisation argues that greater attention must be given to investments that improve agricultural efficiency, including infrastructure, research, innovation and farmer support services.

Despite rising government expenditure, funding for general agricultural services, including infrastructure and innovation, remained relatively stable at approximately 2.4 per cent of agricultural production value.

What This Means for African Agriculture

The findings carry important implications for African countries, where agriculture remains central to employment, rural livelihoods and food security.

Rather than relying primarily on short-term subsidies and emergency interventions, governments need to strengthen investment in irrigation, improved seeds, mechanisation, storage facilities and agricultural research.

Climate-smart farming practices, digital agricultural services and stronger extension systems can also help farmers manage production risks and improve productivity.

For smallholder farmers, access to appropriate technologies, infrastructure and reliable markets remains essential to building sustainable agricultural businesses.

Balancing Farmer Support with Long-Term Investment

Short-term assistance remains important when farmers face droughts, floods and sudden increases in production costs. However, such interventions should complement broader investments that address structural challenges within agricultural systems.

For Africa, the priority should be building productive and resilient farming systems capable of supporting farmers beyond individual funding programmes.

At Agrifocys Africa, we recognise that sustainable agricultural transformation requires more than supporting farmers through difficult seasons. It requires investing in the infrastructure, technology and innovation that enable agriculture to grow and remain competitive.