29/03/05
The national press could not have got its agricultural subsidy
disclosure stories more wrong, the National Beef Association said
today.
Journalists and broadcasters have taken information released under
the Freedom of Information Act to once again accuse farmers of
featherbedding themselves on tax payers' money.
However the truth is that for decades coupled support payments
have been employed to underwrite the cost of ex-farm products to
processors, retailers and consumers.
And now that subsidy de-coupling has been introduced the temporary
Single Farm Payment (SFP) will be used by farmers to prepare themselves,
and their customers, for 2013 when it will be withdrawn and all
farm income is earned directly from the market.
"This will hit consumers just as hard as it will farmers
because both will have to make big adjustments that will underline
the fallacy that farmers have been routinely pocketing large sums
of money at the tax payers' expense," explained NBA chief
executive, Robert Forster.
"At present beef farmers are still selling specially bred
cattle onto the food market for 30-35 per cent less than the cost
of production which works out at around £330 for average
weight animals."
"Up until January 1st this chasm between outgoings and market
income was filled through headage based subsidies."
"However it has never been acknowledged that these benefited
the consumer as much, if not more, than the farmer because subsidies
not only made it possible for beef to continue to come forward
even though it was being produced at a significant loss but also
meant that consumers, as well as retailers and processors, were
able to pay much less for it as it moved through the supply chain."
"This comfortable situation has changed dramatically. The
new farm support system has a time limit so farmers must use their
SFP to reduce production costs and make their businesses more efficient
so they can survive without any EU payments in eight years time."
"Consumers however will have to pay more their beef unless
they want to rely on cheap imports from countries with much lower
production and food safety standards than our own that will be
difficult to organise on a regular basis - or be delivered at the
volume required."
"This knocks on the head the knee jerk notion that consumers
are subsidy victims and farmers have been fat cat beneficiaries."
"While in the past below cost beef production was underwritten
by consumers through taxes they will now have to pay 25-30 percent
more for UK beef through the market if top quality domestic production
is to be maintained."
"For their part beef farmers, who have never grown sleek
at the taxpayers' expense because they consistently turned out
cattle at less than cost, will have to find ways of taking 20-25
per cent of the expense out of their businesses or else they will
not be able to survive."
"Unfortunately it is unlikely that the national press will
take any notice of these observations because it would not wish
the reality of the farm subsidy situation to interfere with longstanding,
farmer bashing, urban myth they are so determined to promote," Mr
Forster added.
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