Distribution of Support and Income in Agriculture

Agricultural production and support in Canada, the United States, and the European Union are highly concentrated on larger farms, which have higher income levels than the average of all farms. Smaller farms, though, are more dependent on support (in particular, payments) which accounts for a larger share of their gross receipts. As payments to farmers are more equally distributed than production, government support reduces income inequality by farm size and farm type. This study, carried out in the context of the OECD Network for Farm Level Analysis, concludes that improved efficiency and equity of policies will require better targeting of income support and, in turn, better information on the income and wealth situation of the agricultural population.