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Old 19-05-2003, 01:44 AM
Tim Lamb
 
Posts: n/a
Default UK farm profitability to jun 2002

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.


Sir, you are begging the question.


No, you are just trying to shift the burden of the proof. It should
not be a problem to you if someone says farm production shouldn't have
a subsidy. Either you can agree, or you are able to argue why or in
which way you think it should.


Umm. Is it practical to expect supply and demand to balance?

I grew up on a small farm during the '50s and recollect the boom/bust
cycles of agricultural production. Poultry and pigs were the main
offenders as cereals were always in deficit. Dairy and beef were not
very cyclic but not very profitable either. Even then our government
interfered in the free market with support payments for some produce and
generous grants for capital improvements. Activity such as liming was
grant aided. Joining the EU simply changed the way payments were made.

My understanding of the CAP was that support payments would allow time
for inefficient holdings to catch up and that such payments were not
permanent. In the event, world agriculture has moved ahead such that
European inefficiencies remain as they were. We farm more land, we use
less labour/more chemicals but we are still not as efficient as our
Kansas competitor or as cheap as our Ukrainian one.

If I could produce figures to show that each euro of subsidy reduced
consumer food prices by more than that amount there might be a
justification. If I could dissect how much of the £4,000,000,000? ends
up as dividends for retailer shareholders and wages for value added
activities beyond the farm gate there might be a justification. If I
knew the proportion which is not spent importing farm chemicals/machiner
y/fertilisers but is recycled within the UK economy there might be a
justification. But I can't so I will continue claiming and look forward
to the day when it is someone else's problem.

regards


--
Tim Lamb