Soil erosion threatens the productivity of land in both rich and poor countries. The United
States, where the most careful measurements have been done, discovered in 1982 that about one-fifth of its farmland was losing topsoil at a rate likely to diminish the soil's productivity. The country subsequently embarked upon a program to convert 11 per cent of its cropped land to meadow or forest. Topsoil in India and China is vanishing much faster than in America.
Government policies have frequently compounded the environmental damage that farming can cause. In the rich countries, subsidies for growing crops and price supports for farm output drive up the price of land. The annual value of these subsidies is immense: about
$250 billion, or more than all World Bank lending in the 1980s. To increase the output of crops per acre, a farmer's easiest option is to use more of the most readily available inputs: fertilisers and pesticides. Fertiliser use doubled in Denmark in the period 1960-1985 and increased in The Netherlands by 150 per cent. The quantity of pesticides applied has risen too: by 69 per cent in 1975-1984 in Denmark, for example, with a rise of 115 per cent in the frequency of application in the three years from 1981.
In the late 1980s and early 1990s some efforts were made to reduce farm subsidies. The most dramatic example was that of New Zealand, which scrapped most farm support in