Various ‘‘drop-in fuels”, such as synthetic paraffinic kerosene (a substitute for jet fuel), which do not require blending with fossil fuels, are currently under development. Given the large size of fossil-fuel markets relative to the market for agricultural commodities, implications for agricultural markets are potentially significant (OECD, 2008). This analysis is undertaken in a forward-looking manner: alternative policy settings are compared with a baseline scenario that assumes current trends and policies to be continued to 2025.