Explanation:

Neither 1 nor 2

Blue box is also known as the production-neutral box: This statement is incorrect. The Blue box in the context of World Trade Organization (WTO) subsidies is not known as the production-neutral box. The Blue box includes certain production-related support measures that are considered to cause minimal distortion to trade and production. It is not entirely production-neutral, but it has conditions attached to minimize distortions.

Green box subsidies cover payment directly linked to acreage or animal numbers: This statement is also incorrect. Green box subsidies under the WTO do not cover payments directly linked to acreage or animal numbers. The Green box includes subsidies that are considered to be minimally or non-distorting to trade and production. It includes, among other things, direct payments to farmers that are not related to production levels.

Therefore, neither statement 1 nor statement 2 is correct.