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If you’ve ever wondered why it is so difficult to change government programs that seem expensive or inefficient, you aren't alone. In agriculture, fertilizer subsidies are a classic example, often standing as a major hurdle to the global agenda of repurposing agricultural support toward more sustainable and nutritious outcomes. While economists frequently point out the fiscal and environmental flaws of these programs, they remain a mainstay of policy in many countries. A recent IFPRI Discussion Paper looks into the reasons behind this.

The FAO Food Price Index rose in February for the first time in five months, driven by increasing cereal, meat, and vegetable oil prices. Despite the increase, however, the Index remains nearly 35 percent below the record high reached in March 2022.The Cereal Price Index rose slightly more than 1 percent in February but remained 3.5 percent below its February 2025 level. Wheat prices increased due to concerns about cold weather in Europe and the United States, as well as transportation disruptions in Russia and the Black Sea region.

The attack on Iran by U.S. and Israeli forces and Iranian retaliation against U.S. allies in the Persian Gulf have roiled energy markets by disrupting shipping through the Strait of Hormuz—the Gulf’s only sea passage to the open ocean. About 27% of the world’s oil exports, 20% of global liquified natural gas (LNG) exports, and 20%-30% of global fertilizer exports, including urea, ammonia, phosphates, and sulfur, pass through the Strait.

Reducing greenhouse gas emissions and climate change impacts is a core element of global agrifood system transformation. Yet, while it represents an important opportunity for capital markets and investors, climate finance focused on agrifood systems has thus far been limited. In 2022, $95 billion of global climate finance funding was dedicated to agrifood industries and practices, with 22% coming from private sources.

7.5 million Pakistanis are currently facing high levels of acute food insecurity, according to a new IPC alert released this week.   Pakistan suffered from multiple climate shocks in 2025, including a monsoon-driven flooding and prolonged drought.