The OECD meeting of ministers of agriculture in Paris takes place at a very difficult time for farmers. Severe falls in farmers’ income occurred through the OECD region in 2009, of from 20-40 percent.

The farm economy is squeezed by low prices for farm products and high prices for farm inputs.  Further, interest rates are predicted to rise later this year. This is an unsustainable situation for farmers.

OECD is an organisation with high credibility doing good reports. IFAP requests therefore that the OECD better track the cost of farm inputs, and the functioning of farm input markets. This is in addition to its work on farm prices.

The cost-price squeeze on farmers is aggravated by increasing volatility – volatility of farm prices and farm costs.

Excessive price volatility has a negative impact on both consumers and producers. OECD is therefore asked to give priority in its work to examine policy and regulatory instruments to address this issue.