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Old 26-04-2003, 12:28 PM
Torsten Brinch
 
Posts: n/a
Default UK farm profitability to jun 2002

On Tue, 24 Dec 2002 16:48:37 -0000, "Michael Saunby"
wrote:


"Tim Lamb" wrote in message
...
In article , Torsten Brinch
writes
?! You were commenting (quote below) the perceived problem, that
farmers are falling behind in income, leading to the aim of the common
agriculture policy, CAP, to attempt to bring farmers up to some form
of income parity with the rest of society. You commented that this
problem cannot be resolved by CAP because -- because --- because
what??

****
The practical policy has been dominated by attempts to increase farmer
income, implicitly aiming at bringing it -- from a falling behind
position -- to parity with other income groups of society.

This is not resolvable. Farmers choose to farm and go to extreme

lengths
to stay in business. Most other professions are rewarded by the
supply/demand system.


I don't know what income a farmer should expect so I don't know with
which group parity is intended. However, as there surpluses of our
products and there is little likelihood of farmers leaving the industry
from choice, bulk commodity purchasers are under no pressure to raise
prices.


Production volume is not affected in a meaningful way by the number of
farmers. The labour (including management) required to produce a tonne of
any commodity is constantly falling. Farmers are forced to leave the
industry due to ever increasing production efficiency. To reduce the
volume of production you must take land out of use, either temporarily by
creating wildlife reserves or similar, or permanently by creating
woodlands, housing estates, airports, roads, etc.


Farmer income is not affected in a meaningful way by the production
volume. The labour (including management) required to produce a tonne
of any commodity is constantly falling. Farmers are forced to leave
the industry due to ever increasing production efficiency. This means
fewer farmers remain to share the total income from farming between,
and each of them can get more. To reduce the number of farmers you
must aid the restructuring of farm businesses, amalgamation, transfer
to other jobs, retirement etc.