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Old 26-04-2003, 12:27 PM
Michael Saunby
 
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Default UK farm profitability to jun 2002


"Torsten Brinch" wrote in message
...
On Fri, 20 Dec 2002 21:50:34 +0000, Tim Lamb
wrote:

In article , Torsten Brinch
writes
No, it is the assumed default among reasonable men. It is the
presence, not the absence of a subsidy that must have a special
explanation attached to it. It does not make sense to ask, why some
enterprise should -not- have a subsidy.


How about conspiracy theory?

In a country without a command economy is it easier for government to
control agricultural production with or without paying subsidy?


It was never a secret that cap in the origin, and all along the way
has come with intents to influence agricultural production. The mental
exercise is to realise that government has very little such intent any
more, and far less than it needs to justify the current cap payments.


UK government is a complex beast. Just because parliament, or government
ministers, or the cabinet, or whichever group you believe no longer
supports farming subsidy, wishes to end it immediately, doesn't mean that
the machinery of government will not, one way or another, provide subsidy
for farming for the rest of our lifetimes. It may not be a direct payment
for production (that's not really what happens now anyway), but it will be
some form of support to the food production industries. For example there
are often complaints from environmentalists that some areas are over
grazed, so clearly there will be pressure for government to regulate
grazing, even if government doesn't determine the size of the national
sheep flock through quotas.

It may be that we choose to assist farming in developing countries -
something I was involved in many years ago under a previous government but
which has declined in recent years. We may continue to assist other
friendly nations with beneficial trade agreements, e.g. continue to support
Denmark and New Zealand.

The management of farming, food production, food import and export,
interference with food production and supply in other nations, is something
that provides employment for vast armies of civil servants, from the tax
collectors to scientific research. There's no way this is all going to be
handed over to the private sector.

Certainly more expensive food in the UK might have some interesting effects
on our economy.

Michael Saunby