Subsidies

Globally, agricultural support is high—totaling about $600 billion annually—and continues to increase. The harmful impacts of subsidies on trade are widely known, but their harmful environmental impacts are less well-understood. This was the theme of a December 14 policy seminar organized by IFPRI in collaboration with the University of Adelaide, Australia (UA).

Input subsidy programs—a mainstay of 1960s and 1970s international donor agendas—have regained favor in Africa south of the Sahara in recent years. Although 10 African countries spent more than $1 billion on these programs in 2011 alone, little information exists on the impacts the programs are having on households and communities.

The US Senate on Thursday voted to eliminate billions of dollars in federal ethanol subisidies, making it unlikely that the current 45-cent-per-gallon subsidy for refiners and 54-cent-per-gallon tariff on imported ethanol will be extended beyond the end of the year.