Who is REALLY paying for AG Subsidies???......... THE RICH

Dave645

Member
Arable Farmer
Location
N Lincs
I have been thinking about alternatives to subs, we already have fair trade items now including some milk in a way.
Do you think it would be possible to use this type of system, to bump farm gate prices to the point farmers don't need subs.

The only possible issue I have with this is it encourages farmers to increase production, which is something that the EU did in the past, and we ended up with food mountains and farmers needing heavy support. As food prices crashed and again food was not much cheaper for the public.

For me it limits the fair trade system unless it also is managed in some way to avoid the mistakes of the past.

As we will be out of the EU what about this, the government set a minimum farm gate price, this is forced on anyone buying farming products within the uk. When I say minimum I mean it's just above the average break even point or a little higher to give farmers an exeptable profit.(one they can live on without subs)
But it also sets a minimum price for the "farmers" providing imports. So no cheap imports but no trade tariffs the restriction is placed on company's and retailers that the farmer in what ever country the food comes from gets the equivalent to the uk farm gate price minimum. That means before imports start that the uk farmer will be getting over the minimum price because of transport costs.
This does a few things sets a fair price for uk farmers, encourages home grown food to be used, and pays the poor farmers in other countries a fair price for there food if we import it.
This would have to be actively run and the minimum price would be have to be set and monitored and adjusted as things went on, as farm inputs change. So do the minimum prices set.
This system also restricts massive price rises in the uk as if imports are cheaper they restrict prices from going high as imports step in as normal, with the only proviso that transport costs are factored in.

Exports...... as imports are going to be restricted by the system but not buy trade tariffs I am not sure what will happen with exports, exports will only happen if we have some to export and it will have to be at the normal prices, no minimum price set. That's the head scratch part....we cannot force our price on the rest of the world.
In the short term the govermant can maybe cover the difference if it's lower and is exported at world prices.
Which if managed right will give farmers time to move cropping into filling what we import rather than what we export.

This is just an idea, it would offer farming a way out of subsidies, it maybe cannot be done, it may not work, but it's an idea.
If anyone else has an idea that will, post it. Let's see if we can farm without subs. But without the risk of going bust overnight.
 
I have been thinking about alternatives to subs, we already have fair trade items now including some milk in a way.
Do you think it would be possible to use this type of system, to bump farm gate prices to the point farmers don't need subs.

The only possible issue I have with this is it encourages farmers to increase production, which is something that the EU did in the past, and we ended up with food mountains and farmers needing heavy support. As food prices crashed and again food was not much cheaper for the public.

For me it limits the fair trade system unless it also is managed in some way to avoid the mistakes of the past.

As we will be out of the EU what about this, the government set a minimum farm gate price, this is forced on anyone buying farming products within the uk. When I say minimum I mean it's just above the average break even point or a little higher to give farmers an exeptable profit.(one they can live on without subs)
But it also sets a minimum price for the "farmers" providing imports. So no cheap imports but no trade tariffs the restriction is placed on company's and retailers that the farmer in what ever country the food comes from gets the equivalent to the uk farm gate price minimum. That means before imports start that the uk farmer will be getting over the minimum price because of transport costs.
This does a few things sets a fair price for uk farmers, encourages home grown food to be used, and pays the poor farmers in other countries a fair price for there food if we import it.
This would have to be actively run and the minimum price would be have to be set and monitored and adjusted as things went on, as farm inputs change. So do the minimum prices set.
This system also restricts massive price rises in the uk as if imports are cheaper they restrict prices from going high as imports step in as normal, with the only proviso that transport costs are factored in.

Exports...... as imports are going to be restricted by the system but not buy trade tariffs I am not sure what will happen with exports, exports will only happen if we have some to export and it will have to be at the normal prices, no minimum price set. That's the head scratch part....we cannot force our price on the rest of the world.
In the short term the govermant can maybe cover the difference if it's lower and is exported at world prices.
Which if managed right will give farmers time to move cropping into filling what we import rather than what we export.

This is just an idea, it would offer farming a way out of subsidies, it maybe cannot be done, it may not work, but it's an idea.
If anyone else has an idea that will, post it. Let's see if we can farm without subs. But without the risk of going bust overnight.
Can you re-post that in a new thread, starting again with a more constructive, upbeat and forward thinking attitude may make a big difference and not end up like this thread.
 
Location
Devon
I have been thinking about alternatives to subs, we already have fair trade items now including some milk in a way.
Do you think it would be possible to use this type of system, to bump farm gate prices to the point farmers don't need subs.

The only possible issue I have with this is it encourages farmers to increase production, which is something that the EU did in the past, and we ended up with food mountains and farmers needing heavy support. As food prices crashed and again food was not much cheaper for the public.

For me it limits the fair trade system unless it also is managed in some way to avoid the mistakes of the past.

As we will be out of the EU what about this, the government set a minimum farm gate price, this is forced on anyone buying farming products within the uk. When I say minimum I mean it's just above the average break even point or a little higher to give farmers an exeptable profit.(one they can live on without subs)
But it also sets a minimum price for the "farmers" providing imports. So no cheap imports but no trade tariffs the restriction is placed on company's and retailers that the farmer in what ever country the food comes from gets the equivalent to the uk farm gate price minimum. That means before imports start that the uk farmer will be getting over the minimum price because of transport costs.
This does a few things sets a fair price for uk farmers, encourages home grown food to be used, and pays the poor farmers in other countries a fair price for there food if we import it.
This would have to be actively run and the minimum price would be have to be set and monitored and adjusted as things went on, as farm inputs change. So do the minimum prices set.
This system also restricts massive price rises in the uk as if imports are cheaper they restrict prices from going high as imports step in as normal, with the only proviso that transport costs are factored in.

Exports...... as imports are going to be restricted by the system but not buy trade tariffs I am not sure what will happen with exports, exports will only happen if we have some to export and it will have to be at the normal prices, no minimum price set. That's the head scratch part....we cannot force our price on the rest of the world.
In the short term the govermant can maybe cover the difference if it's lower and is exported at world prices.
Which if managed right will give farmers time to move cropping into filling what we import rather than what we export.

This is just an idea, it would offer farming a way out of subsidies, it maybe cannot be done, it may not work, but it's an idea.
If anyone else has an idea that will, post it. Let's see if we can farm without subs. But without the risk of going bust overnight.

Two words..

TOTALLY unworkable!
 
I'm confused!! @Bossfarmer is saying that without subs, food prices will rise - as he believes has happened in Australia and NZ. If this is the case then is he arguing that subs should go, because if prices rise farmers will be just as well off as before.

Surely it's only if prices don't rise that subs will be required??

And yet he says, in spite of the expected price rises, he wants subs to continue...??

As I said, I'm confused. Help!

prices will certainly rise as farmers going out of business will cause a shortage however not by near enough to cover farmers sfp as remember it is pure profit, this is the reality of the situation
 

Kiwi Pete

Member
Livestock Farmer
do you not think if demand increased due to a shortage of lamb here they would put their price up? theyd be mad not to
Good in theory.. nz only has two meat companies and they just pay what the other one pays. Have no idea what Oz has in terms if processing companies though.
I think the subs will stay. In some way shape or form. That just my opinion. They might be stylishly renamed but unless it's a very very slow weaning off, it just stands to rock the boat too much for you guys and girls.
I don't mean this in a smarmy way either, my other posts on the subject have been largely tongue-in-cheek. The simple fact is, you have an awful lot of people, farmers especially, trying to eek a living on a small landmass. That's the way it is, and NZ is very opposite to that. Sure we have shitt wages and high costs, but it's found a balance. Try the sudden subs chop that we had in the late 70s?? and it would be the same strife multiplied by the population factor.. that is huge! Range rovers would be harder to shift than they are here, to put it mildly.
 
I'm not sure why he's getting his knickers in such a twist. We've already established that grocery prices here are more expensive than the UK, just not the 30-40% (which is a preposterous figure) more expensive than he was quoting. Let's be generous and give him 5%. Perhaps my little shop is an anomaly? Maybe they have a conscience?

So if we accept that it is a little more expensive here, to put that increased cost solely at the door of no agricultural subs, which seems to be what he's proposing, is equally as preposterous.

Remember, Australia only has 2 big, national super market chains to speak of. Coles and Woolworths. (Aldi has recently arrived but it's early days so let's work with those two.) What does the UK have, 5? So there's a lot more super market competition in the U.K. driving prices down.

Also, there's 3 times the population, which means 3 times the food spend in the UK, which means more turnover to shave the margins on.

It also doesn't explain why eating out is so reasonable here. With higher wages and higher cost of water, power and alcohol, the raw ingredients at wholesale must be very reasonable indeed. Which begs the question of supermarket margins again.

Plus, as has been said before, farm gate prices are based on world prices, so we're back to the beginning, subs have little or no effect on food prices.

Subs simply pay for the added bureaucracy and bullsh1t that you poor buggers have to put up with... oh, that and Bossfarmers expansionist ambitions of course! :cheeky:
to claim having no subs has no affect on your food being more expensive is actually what I would consider preposterous and illogical, yes farm gate prices are based on world prices to a certain extent which we all know are driven by SUBSIDIES, cheap food for the masses
 
Location
Cheshire
to claim having no subs has no affect on your food being more expensive is actually what I would consider preposterous and illogical, yes farm gate prices are based on world prices to a certain extent which we all know are driven by SUBSIDIES, cheap food for the masses

Subsidies affect food prices less than taxation to suggest otherwise is quite illogical. There is no need for subsidies if taxation is implemented astutely.
 
Good in theory.. nz only has two meat companies and they just pay what the other one pays. Have no idea what Oz has in terms if processing companies though.
I think the subs will stay. In some way shape or form. That just my opinion. They might be stylishly renamed but unless it's a very very slow weaning off, it just stands to rock the boat too much for you guys and girls.
I don't mean this in a smarmy way either, my other posts on the subject have been largely tongue-in-cheek. The simple fact is, you have an awful lot of people, farmers especially, trying to eek a living on a small landmass. That's the way it is, and NZ is very opposite to that. Sure we have shitt wages and high costs, but it's found a balance. Try the sudden subs chop that we had in the late 70s?? and it would be the same strife multiplied by the population factor.. that is huge! Range rovers would be harder to shift than they are here, to put it mildly.

finally some common sense from someone on here, a lot of people over here seem to think we are just another small island like NZ lets just do what they did, they do not mention all the bankrupt farmers it caused and extra 55 million people we have here not to mention much longer and colder winter months
 

Kiwi Pete

Member
Livestock Farmer
The other point is that NZ in the 70s... well I don't know if you've been that backward and basic ever. Remember we only see the part portrayed by media.. but back then there were mk2 Cortinas etc like sandflies in nz. Especially farming communities, were and are pretty small and low budget, so when our rural sector felt the hit, it was just a hit. Spending was cut and it followed down the line.
Jump forward 40 years to an old country and there's a lot more set in stone.
You guys have way higher production costs and that's not an easy thing to get around, all of a sudden. We just stopped putting on super and the grass kept growing. Stopped spraying gorse and it grew too.
Will has a good point about taxation though. It has a big part to play in who gets to succeed.
What's it cost to run a ewe 12 months and finish 1.4 lambs in the ewekay? For my own curiosity? Near as I can get to local figures from accounting firm is $74 last year. I think £=$1.71 today.
 
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finally some common sense from someone on here, a lot of people over here seem to think we are just another small island like NZ lets just do what they did, they do not mention all the bankrupt farmers it caused and extra 55 million people we have here not to mention much longer and colder winter months

You admitting you've talked pish?
 
finally some common sense from someone on here, a lot of people over here seem to think we are just another small island like NZ lets just do what they did, they do not mention all the bankrupt farmers it caused and extra 55 million people we have here not to mention much longer and colder winter months
You need to change the way you think. Yes we are very different to New Zealand, we have an extra 56ish million people on our doorstep to sell to! the weather is miserable and we have longer (but not always as cold, Twizel goes well down) winters, so that means the population should be eating more to keep warm.
You need to learn how to sell.
 
You need to change the way you think. Yes we are very different to New Zealand, we have an extra 56ish million people on our doorstep to sell to! the weather is miserable and we have longer (but not always as cold, Twizel goes well down) winters, so that means the population should be eating more to keep warm.
You need to learn how to sell.
do I? NZ has the whole world to and meeting their own peoples food needs is not as issue, I suggest considering we are only 64% self sufficient in food at the moment cutting farmers subs and forcing many out of business would be incredibly stupid
 
The fact he ran out between comments and did it is hard to believe however i will give him the benefit of the doubt and accept his response, i dont think it merits an apology and if you think it does i suggest you harden up a bit

I missed this one last night. Why should you doubt him at all?

Why do you find it hard to believe he walked to the local shop and checked prices?

How long does it take you to find the info on the internet that allegedly shows an old price comparison between two countries? And then copy it over and madke a post? I reckon he could have done his survey in a similar amount of time.

Of course you cannot apologise. I never asked you to, other posters did that. You meant what you posted, so cannot apologise. You can only apologise for something you did inadvertently. Someone who means what they say or do may well feel guilty or sorry for themselves, but apologising to the other person does not right the wrong. Is that hard enough for you?

You still have not told us how your daughter in NZ gave you current prices for Australian food. Nor have you told us what is a strong and a weak £. Without knowing what you consider strong or weak we cannot comment on your claims about how the exchange rate (and against which currencies) affects farm prices.
 
I missed this one last night. Why should you doubt him at all?

Why do you find it hard to believe he walked to the local shop and checked prices?

How long does it take you to find the info on the internet that allegedly shows an old price comparison between two countries? And then copy it over and madke a post? I reckon he could have done his survey in a similar amount of time.

Of course you cannot apologise. I never asked you to, other posters did that. You meant what you posted, so cannot apologise. You can only apologise for something you did inadvertently. Someone who means what they say or do may well feel guilty or sorry for themselves, but apologising to the other person does not right the wrong. Is that hard enough for you?

You still have not told us how your daughter in NZ gave you current prices for Australian food. Nor have you told us what is a strong and a weak £. Without knowing what you consider strong or weak we cannot comment on your claims about how the exchange rate (and against which currencies) affects farm prices.

if I choose to or not to believe what someone says that is up to me end of, it wasn't my daughter it was an article in the Scottish farmer written by a very well respected Scottish farmer, the current £ would be considered weak compared to the Euro and the dollar
 

turbo

Member
Arable Farmer
Location
lincs
if I choose to or not to believe what someone says that is up to me end of, it wasn't my daughter it was an article in the Scottish farmer written by a very well respected Scottish farmer, the current £ would be considered weak compared to the Euro and the dollar
Your arrogance is astonishing and your attitude is doing UK agriculture no favours,grow up and think before you post on here,it's not just farmers that read on here, the people you want to give you money are also on here it's not like shouting your mouth of at a market
 
Your arrogance is astonishing and your attitude is doing UK agriculture no favours,grow up and think before you post on here,it's not just farmers that read on here, the people you want to give you money are also on here it's not like shouting your mouth of at a market

really so by pointing out that subs to agriculture help keep food prices lower for the tax payer im doing it no favours, I suggest that by whining and moaning at what I write rather than making a case for the subs yourself you are the one that's doing us farmers no favours some people on here are seriously easy to offend, bedwetters
 

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