1. Introduction
The food industry currently has to deal with competing pressures, as well as the requirements for sustainable production [
1]. Sustainable practices have become more critical in achieving the cost-effective production and distribution of goods [
1]. Sustainable initiatives are aimed at promoting environmental, social, and economic development and are considered an essential element of companies’ current strategies for achieving sustainable development [
2,
3].
Unsustainable agricultural practices, which include residue burning, deforestation, the use of specific types of fertilizers or pesticides [
4], using a simple crop structure [
5], unsustainable water management [
6], and the use of fossil fuels [
7], pose severe threats to the integrity of agri-food systems. Their effects comprise greenhouse gas emissions, soil erosion [
8,
9], the depletion of ecosystem services on which agricultural systems depend [
10], soil degradation and desertification [
6], water scarcity [
6], and reductions in available farmland [
11].
Researchers highlight the need for the development of mechanisms to support farmers with the implementation of sustainable practices. These mechanisms could include policies and subsidies to companies committed to sustainable agriculture [
12]. Scholars agree that, due to the diverse and complex obstacles to sustainable agriculture, reducing unsustainable practices demands a broader approach that comprises different dimensions and stakeholders and should simultaneously consider social, economic, and environmental issues [
12]. Therefore, sustainability transitions should focus on a broader view of agri-food systems to foster the implementation of sustainable production practices [
4].
Government institutions have the holistic vision required to determine the needs and pathways to implement sustainable agriculture practices. Since achieving economic growth with social and environmental sustainability is also considered an important policy goal for governments, government support has played a leading role in dealing with environmental problems [
13]. Government support is acknowledged as a strategic external resource due to its potential to influence the business ecosystem significantly and contribute to entrepreneurship and innovation [
14].
Government support includes public policy mechanisms to subsidize and assure firms’ obligations and operations [
15]. Studies have indicated that government support helps to improve firms’ innovation capacity and performance [
16]. In terms of environmental benefits, government support can impact green innovation, promote environmental pollution regulations [
14], and motivate companies or individuals to change their ecological behavior [
13]. Government support is also fundamental to the development of agribusinesses and agricultural development policies. Also, this type of support is required to overcome and reduce the negative impacts on natural resources caused by the sector’s activities [
17]. In addition, it can also support the development of businesses that require significant investments, such as organic farming [
18], or those that have relevant social impacts. In addition, some government support mechanisms seek to guarantee decent work conditions for workers and improve the overall income of farmers [
19]. Due to the importance of this topic, scholars have been calling for more research on the environmental sustainability of agri-food systems [
20].
Government support for sustainable agriculture has been implemented with different purposes and levels in developed countries and emerging economies. In Europe, the Common Agricultural Policy (CAP) has attempted to mitigate unsustainable agricultural practices and their adverse effects. European Union (EU) subsidies have been given considering sustainable and social concerns [
21], like job maintenance in agriculture [
22]. However, the effectiveness of the CAP has been put in doubt [
23], and researchers have focused on analyzing the effects of CAP policy instruments on agricultural productivity and efficiency [
24]. It has been observed that CAP resource assignment is not optimal since resources only sometimes get to where they are most needed, and the substantial reallocation of resources should be necessary [
25]. In China, subsidies and policies have been implemented during the last decades to protect the economic interests of farmers and improve productivity and the quality of agri-food products. Currently, their goal has been to strengthen the protection of agricultural environmental resources [
26]. Emerging countries have been criticizing agricultural subsidies in developed countries arguing that subsidies have been partially responsible for keeping prices low and maintaining poverty in developing countries [
27]. Currently, government support for agriculture production in large emerging economies is reaching the support level of developed countries [
27]. Differences in how countries support sustainable agriculture are to be further comprehended.
Previous studies have analyzed the effects government support has on business activities. Kirchweger and Kantelhardt [
18] examined the effects of government investments on structural change in the industry. Wasserbaur et al. [
28] conducted a systematic literature review (SLR) that investigated the interactions between governmental policies and business models [
28]. Bozhikin et al. [
29] identified different levels and mechanisms to facilitate the development of social entrepreneurship [
29]. Researchers consider that little attention has been paid to the impact of government support and sustainability on rural activities. Hence, despite the importance of government support to sustainable transitions in agriculture [
30], previous research has yet to review its impact in the agricultural context systematically.
It is still unclear which government mechanisms have been adopted to foster the implementation of sustainable agricultural practices. It is also unknown which outcomes and benefits have been provided by each of these government mechanisms. Understanding how governments have been supporting sustainable agricultural practices is necessary to objectively assess the use of public resources, as well as plan upcoming investments. Scholars consider that a holistic approach to sustainable agriculture in regard to government support is still missing [
23]. The consequences and adverse impacts of the lack of government support have not been explored by previous research either.
To fill these research gaps, the objective of this study was to perform a systematic literature review to classify the body of knowledge related to government support in the sustainable agriculture field. More specifically, the following research questions (RQs) are addressed:
RQ1: What are the government support mechanisms usually adopted in the sustainable agriculture industry?
RQ2: What are the primary purposes and benefits of adopting these mechanisms?
RQ3: Which countries have been mostly investigated in this research field?
RQ4: Which crops/agricultural products have often been supported by government support mechanisms?
RQ5: What impacts does the lack of government support present to the industry?
This review is grounded on the Institutional theory [
31], which identifies three different institutional mechanisms that might exert some pressure on organizations: coercive (from government regulations), normative (from the public), and mimetic (from competitors and other institutions) [
32]. We assume that companies that are able to obtain recognition and support from governments achieve higher levels of legitimacy and visibility, which leads competing firms to imitate their structure or operations to obtain similar outcomes [
31].
This study presents several contributions that will be further discussed. The mechanisms usually adopted by governments to stimulate sustainable agriculture were identified. Second, the main goals of government support towards sustainable agriculture were also identified, shedding light on the need to implement more varied mechanisms. Some research questions that might guide future studies have also been proposed. We expect this study to contribute to improving policymaking in sustainable agriculture.
2. Theoretical Background
Government support refers to “the extent to which a particular firm gains assistance such as favorable policies, incentives, and programs from the government and its administrative bureaus” [
33,
34]. Thus, government support is related to financial and non-financial assistance to promote the continuous growth of companies [
35]. It is implemented through different mechanisms, such as financial assistance, subsidies, technical assistance, regulations, and tax exemptions [
36]. Government support also happens indirectly through assistance for building inter-organizational networks, providing financial guarantees, and publicity [
33]. Furthermore, this kind of support is critical, especially for emergent economies, to achieve long-term competitiveness and to encourage companies to extend their operations internationally [
35].
Direct government support provides the necessary resources for companies to develop their activities, which can be particularly important in emerging economies [
33]. Previous research indicates that government support positively affects firms’ innovation capacity and technology adoption, research and development, and collaborations with other partners [
37,
38]. Government support can also be helpful to develop environmentally and socially responsible initiatives [
39]. Moreover, regulatory pressures exerted by governmental agencies and public institutions force companies to invest in sustainable initiatives often aligned with their supply chain partners. In fact, pressures exerted by these regulators are an essential influence on the adoption of sustainable supply chain practices [
40], impacting not only organizations but also their supply chain partners.
Firms grant support when their strategies and operations are aligned with the government’s expectations and regulations [
34]. Hence, government plays a vital role in the implementation of firms’ sustainable innovations, a usually common governmental goal. Governments support sustainable development by establishing policies and providing access to external knowledge, resources, and capital for the implementation of sustainable initiatives in companies [
41]. In the agriculture sector, government support involves providing early-warning information from meteorological monitoring, policies to encourage companies and citizens to manage water resources better, and the planning of disaster response activities [
42].
Institutional theory focuses on how external influence towards conformity influences firms’ operations [
31]. This theory describes a process called institutional isomorphism, in which firms align their strategy with the expectations of institutions [
2]. The theory considers three types of pressure. Coercive pressure is exerted by external agencies and national or international regulators to influence firms’ structure or behavior [
43]. It has a great influence on environmental initiatives [
40]. It includes laws, policies, and regulations that can affect the adoption of sustainable activities in firms. Hence, coercive pressures force organizations to increase their sustainable performance [
44]. Normative pressures are derived from norms specified by professional or industry associations, whose compliance is not enforced nor penalized [
45]. Mimetic isomorphic pressures occur under conditions of environmental uncertainty. To be stable, firms attempt to copy the behavior of their successful competitors and leaders, who appear to be more legitimate companies [
46]. We understand that firms that can grant government support inspire competing firms to imitate them in order to obtain the same type of benefit.
5. Discussions
The sustainable development of agriculture benefits from the implementation of government support measures [
63]. Hence, transitions to sustainable agriculture will demand institutions that support farmers with resources and knowledge [
64]. Our findings contribute to the extant literature because knowing the supporting mechanisms for sustainable agriculture that have been investigated is vital to comprehending and assessing their contribution to sustainability, as well as identifying gaps in this research field.
The role of subsidies in the promotion of sustainable agriculture was highlighted. Agricultural subsidies have been a critical feature of agricultural development policies in several economies [
65]. In fact, an agricultural subsidy policy is an essential way of supporting and protecting the agricultural system by transferring financial support to agriculture, providing sponsorship for certification, and regulating relationships between the producers, consumers, suppliers, and other actors in our society [
19,
66]. Through government support, governments actively guide the behavior of firms, stimulating innovation, entrepreneurship, and sustainable initiatives [
13]. In the agriculture sector, this kind of support has been promoting environmental protection, green and sustainable agricultural development, and employment [
22,
26].
Agricultural subsidies have been a controversial issue due to criticism regarding effective targeting and possible exploitation for personal or political benefit [
65]. Experts call for additional supporting mechanisms and efforts for the agricultural sector beyond the strategies of subsidies and incentives [
67]. Some past studies have shown that expected outcomes from government support through subsidy policies have not been achieved [
13] and that agricultural subsidies do not play a significant role in rural production despite the fact that incredible amounts of financial resources are spent through this kind of supportive mechanism. Other studies found positive effects of subsidies on supporting sustainable practices, like farm employment [
22] and a reduction in chemical fertilizer use [
68]. Thus, researchers claim that the impacts they have on agricultural production still need to be clarified [
26]. Scholars defend that subsidies need to be considerably reduced and adopted as a complementary measure since there are more efficient policy instruments in addressing important drivers for unsustainability [
7]. Typical governance problems should be avoided. We extend previous research by showing that agricultural subsidies are by far the main government support mechanism that has been studied in the literature. Hence, we call for diversifying the types of studies in the area of government support for agricultural sustainability.
The main reason for government support is related to the reduction and mitigation of environmental impacts. We also identified more mechanisms related to environmental outcomes in comparison to social and economic results. This finding is corroborated by previous research in other contexts, which has shown a predominance of environmental themes in contrast to the other sustainability dimensions, especially the social one [
69]. Despite the identification of studies focused on rural development, food security, and job creation, we call for further research in government support mechanisms focused on social and economic goals in the field of sustainable agriculture.
We observed a predominance of studies carried out in Asia, mainly in China. The country’s government agricultural policies have considerable relevance for international agricultural trade with global impacts [
70]. Furthermore, only some studies related to South America were identified. This finding is surprising considering the fact that there are relevant exporters of agricultural products in the continent [
71], such as Brazil, Argentina, and Chile. We also highlight that, in order to be accepted by international markets, producers and exporters must comply with regulations by government institutions both in the exporting country and in the destination countries [
72]. Hence, since governments generally support companies to develop the required capabilities to get into international markets, this is a research gap that needs to be explored. Our vision is shared by other scholars who have stated that emerging Latin American economies represent a different research scenario in relation to the EU, USA, and Asia [
73].
Lastly, our study identified that the lack of proper government support could have environmental impacts and could also affect organic agricultural practices and production. Despite increasing production and consumption growth in several countries, organic production is somehow dependent on policies for environmental protection and rural development [
74]. Therefore, aligned with previous studies that have shown that farmers can be frustrated by the lack of support [
75], this study calls our attention to the impacts that can be derived from this situation.
This study also presents some theoretical contributions, extending the application of the Institutional View theory. This theory states that organizations are rewarded for being similar to others in their fields. This can make them be acknowledged as legitimate, reputable, and eligible for public and private grants, investments, and support. This theory considers that the greater the extent to which organizations transact with state agencies, the greater the total extent of isomorphism in their field [
31]. Our study extends this theory by considering that firms attempt to mimic their competitors’ behaviors to obtain government support. By leveraging their core capabilities and resources with government support, they achieve competitive advantages [
16]. Companies attempt to imitate their competitors because of one of the central aspects of Institutional View theory, legitimacy. Organizations gain legitimacy by following institutional norms and beliefs created by society and governments [
46]. Legitimate firms ensure their credibility with different stakeholders. Since the implementation of sustainable agricultural activities is expected by society and is supported by governments, firms will continuously look for the adoption of these initiatives to achieve legitimacy and different kinds of support from governmental institutions. We also propose that future studies should investigate the effects that government support has on agri-food companies’ legitimacy.
A robust governmental support policy is necessary, but more is needed to foster sustainable development in the agriculture industry. Through different support mechanisms, governments can help companies implement sustainable practices. However, different stakeholders form agricultural systems and each one of them also need to support sustainable practices. From producers to consumers, all actors in the chain have their share of responsibility and influence on the different dimensions of sustainable agriculture. Government support mechanisms are a way of achieving sustainable performance, which cannot be achieved only through these mechanisms. As previously discussed, firms need to be convinced that sustainable practices will lead to better economic performance and that the implementation of these practices is a required capability in the current world.
An outlook of government support mechanisms related to sustainable agriculture has been depicted, which, in turn, allows for the identification of some gaps and research opportunities.
Table 8 presents some research questions proposed based on this study’s findings, organized in terms of the different sustainability dimensions. The research findings that support each research question are also presented.
6. Conclusions
This study performed an SLR to identify government support mechanisms adopted in the context of sustainable agriculture. We found out that subsidies are the most recurrent mechanism investigated and reported in this research field. Other mechanisms include programs, regulations and laws, financial and technical assistance, support, consulting, and training. We also found that most of these mechanisms aim to implement sustainable practices and reduce environmental impacts caused by agricultural activities. We also observed some mechanisms that aim to support organic farming, industry growth, and rural development. We also found that most studies were carried out in Asia, mainly in China. We also called the scholars’ attention to the low number of studies performed in South America. Finally, we identified some of the negative consequences of the absence or lack of government support in the industry.
This study adopted a rigorous protocol based on previous research recommendations. However, some limitations need to be reported. First, other terms similar to government support, like public policies, could have been used to identify related research papers, which could lead to the consideration of a different number of studies. Nevertheless, in this study, we were particularly interested in the adoption of government support mechanisms. Future research could explore this aspect. Second, the assessment of inclusion and exclusion criteria was performed based on explicit information reported in each article. However, some studies did not present explicit data so that inclusion and exclusion criteria could be assessed, which increased the difficulty of finding the desired information. Despite considerable efforts to avoid errors, some misinterpretation of the data provided in the sample of articles could have occurred. Finally, this review included only research published in indexed databases (Scopus and WoS). Expanding the search to other databases or even to grey literature is a suggestion for future work.