Health check reactions…

With the Commission’s proposals widely leaked before publication earlier today, there was plenty of time for those who take an interest in EU farming policy to precook their reactions. In this post, which I will endeavor to update over the next few days, I’ll try to bring together a summary of the most interesting responses.

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Irish farmers: biting the hand that feeds them?

The Republic of Ireland will hold a referendum on ratification of the EU’s Lisbon Treaty on 12 June 2008. The Irish Farmers Association is urging a No vote, on the grounds that the EU’s push towards more open world markets in agriculture could expose them to competition from overseas, notably from Latin America.

Ireland gets way more than it’s fair share of EU farm handouts. And this fact will not be lost to other member states if Ireland votes to derail the Lisbon Treaty. The EU is currently engaged in a fundamental, ‘once in generation’ review of its budget. The main target for cuts appears to be the agriculture budget, which accounts for around 45% of all EU spending.… Read the rest

What is happening to EU land prices?

The evolution of agricultural land prices and rents can be a good indicator of the effect of agricultural policy, because of the assumption that a significant proportion of the transfers to farmers as a result of such policy are capitalised into land values. Thus, changes in agricultural policy may have implications for land values, and the prospect of capital losses due to a fall in land values can be one source of opposition to such changes.

The issue is relevant in the context of the Commission’s proposals to introduce a ‘regret clause’ with respect to the implementation of the Single Payment Scheme as part of the Health Check.… Read the rest

Farm land price boom

The cost of agricultural holdings across the EU has risen to record levels. However, this is not entirely good news for farmers. It makes it even harder for those who do not inherit to enter the industry, while only farmers wanting to retire can cash in. Tenant farmers face higher prices making life more difficult for them.

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US House of Representatives passes ‘veto-proof’ Farm Bill

Dan Morgan of the Washington Post reports on the legislative passage of a 5-year US Farm Bill, with a sufficient majority in the House of Representatives (318:106) to override any Presidential veto. President Bush had previously threatened a veto unless the Farm Bill would set a new upper limit on the size of subsidy payments and avoid raising any new taxes. He looks to have been outmaneuvered.

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Darling's daring bid for reform

The UK Chancellor of the Exchequer (aka Finance Minister) Alistair Darling wrote earlier this week to all his counterparts on the Economic and Financial Affairs Council (ECOFIN) ahead of today’s meeting, setting out the case for a radical reform of the EU’s agriculture and trade policies. Specifically, he calls for the abolition of direct aids (some €34 billion a year) and the abolition of EU tariffs on agricultural imports. He also signals the growing concern in the UK about the EU’s headlong rush into food-for-fuel policies that are widely seen as contributing to the rapidly rising costs of food in Europe and elsewhere.… Read the rest