Why Wealthy Countries Subsidise Agriculture Despite Free-Market Policies

High-income countries subsidise agriculture partly to protect local food production from cheaper imports. Their farmers often face higher wages, land costs and regulatory expenses than producers in lower-cost countries. Without support, locally produced food may struggle to compete on price. Governments may then become more dependent on imports for essential staples, leaving consumers exposed to global supply disruptions and price shocks. The argument is that agriculture is different from many other sectors because food security is fundamental. Even where a country allows market forces to shape other industries, it may still support farmers to keep domestic production viable and protect its long-term food supply.

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