Many governments intervene in agricultural markets. The reasons for doing so vary greatly: to keep food prices low for consumers; to support farm incomes; to reduce price volatility; and to meet other political objectives. Some policy interventions can have unforeseen consequences. Monitoring the levels of incentives in many countries provides information on changes in global markets, and measuring the impact of incentives helps governments to make necessary policy adjustments. It is an important component of the Policies, Institutions and Markets (PIM) research program strategy.
The note summarizes the motives and key outcomes linked to this initiative.