Government agricultural subsidies often support the most welfare-compromising farming systems, creating misaligned incentives for welfare improvement.
Agricultural subsidy systems that pay per animal or per unit of production incentivize intensity over welfare. Intensive systems with the worst welfare outcomes often receive the most support. Subsidy reform to include welfare performance payments would create economic incentives for welfare improvement at scale. The political economy of subsidy reform is challenging but several European countries have demonstrated that welfare-linked payments are practically achievable.