By Berkeley Hill
The typical Agricultural coverage (CAP) has been helping the earning of the eu Union's agricultural neighborhood for part a century. regardless of this, there's nonetheless no reliable method in position to trace the industrial wellness of farmers and their households. This booklet examines the facts at the total wealth of farming families, and concludes that during approximately all member states, they aren't normally a negative region of society, with disposable earning which are just like, or exceed, the nationwide ordinary. during this up to date version, the writer discusses the most recent facts, makes innovations for collecting greater details, and considers the consequences for the CAP as we input the second one decade of the twenty first century.
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Extra resources for Farm incomes, wealth and agricultural policy : filling the CAP's core information gap
Sample text
The OECD has observed that 'One of the main motivations which has led to the panoply of interventions which characterise the agricultural sectors of OECD countries has been concern about the income of farmers and their families' (OECD, 1995). Similarly, a retired Permanent Secretary of the UK's Ministry of Agriculture, Fisheries and Food when contemplating how the CAP should be revised to fit the future, referred repeatedly to the central importance of the income support to farmers as a determining factor in past policy, and stressed that, where reforms to the CAP bring lower prices and reduced income from farming 'This issue will have to be addressed if any programme is to have the slightest chance of being taken seriously' (Ockenden and Franklin, 1995).
Even on farms of the same size and type there is a diversity of management abilities and good fortune which will be reflected in a diversity of income levels. There is an important (though, as we will see later, inexact) link between the incomes of farm businesses and the personal incomes of the families that operate them. Farming in the EU consists of, in the main, businesses that are personally owned and managed by families. Consequently business profits, in addition to being the rewards to farmers as owners of the factors of production, are often a major source of their spending power as consumers.
The 1947 Act refers to the aim of: Promoting and maintaining . . a stable and efficient agricultural industry capable of producing such part of the nation's food and other agricultural produce as in the national interest it is desirable to produce in the United Kingdom, and of producing it at minimum prices consistently with proper remuneration and living conditions for farmers and workers in agriculture and an adequate return on capital invested in the industry. [emphasis added] Two major UK White Papers dealing with policy - Food from Our Own Resources (HMSO, 1975), and Farming and the nation (HMSO, 1979) - either restricted consideration to comments on changes in the aggregate income from production of the agriculture sector (the former) or virtually ignored the topic (the latter).