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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

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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.

… Read the rest
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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.

… Read the rest
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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

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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

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Michael Pollan on the importance of culture in food

American journalist Michael Pollan has written some great books about food and farming, most notably the Omnivore’s Dilemma, which cast a critical eye at so-called Big Organic: the industrial mono-culture organic farmers and growers and big organic chain stores like Whole Foods Market. His new book In Defense of Food offers a manifesto for eating in America to break the vicious cycle of junk food, chronic diet-related diseases and food ignorance. Many of his ideas draw on the notion of ‘food culture’, something that he argues that Americans have lost, and we Europeans (well, maybe not us Brits), still have.… Read the rest

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EU food safety rules: Do as I say, not as I do

The timing, if not the chicken, is delicious. On the same day (and in the same newspaper!) that German farms minister Horst Seehofer called for the EU to export its standards of environmental, animal welfare and food production regulations to China and India, it has been revealed that member state governments have been covering up the flouting of EU’s rules on cleaning chicken meat with chlorine solution. These rules have kept out all poultry imports from the US for the past eleven years.

… Read the rest
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Milk quota removal could cost EU farmers €4 billion

The elimination of milk quotas as currently foreseen in 2015 will result in a loss to producers of €4 billion, and a gain to consumers of €3.7 billion, according to research by economists at the Institut d’Economie Industrielle in Toulouse. The group were asked to evaluate the impacts of the expiry of the EU milk quota system, comparing particularly a ‘soft landing’ scenario in which milk quotas are gradually increased between now and 2015, and a ‘hard landing scenario’ in which quotas are maintained until 2015 and then eliminated in that year. The ‘hard landing’ scenario postpones the adverse effects for producers both in competitive milk-producing countries (where quota rents are currently high) as well as in countries which currently are not meeting their quota.… Read the rest