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Who else woke up to find their SFP in their account?
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<blockquote data-quote="farmerm" data-source="post: 7865737" data-attributes="member: 7195"><p>Subsidy allow supermarkets to screw us, really? Explain that one to me because that seems rather at odds to my basic understanding of economics. BPS is a pretty minimal part of turnover or even none existent when it comes to supermarket staple of fruit, veg, salad and intensive meat and milk. Do you think Mr Tesco is now going to feel sorry for us and pay more for lower margin per ha crops of cereals, beef or lamb as subs are phase out, are they bollox. Price is driven by supply and demand, not supply, demand and what a producers has received in subs, If sub removal really has any raising effect on the domestic price of a commodity it can occur because of a reduction in supply.... A reduction of supply comes from producers being forced into cutting back or quitting production. There is an argument that perhaps subs do inflate farm costs as they do help drive demand for machinery and other inputs... but subs are not what gives supermarkets the power to screw farmers. The reality of the past few decades is subs have kept the average (or below average) beef, cereal and sheep producer, working average (or below average) land, from going bust in an average (or below average) year. As luck would have it the recent upticks in commodity values may negate the loss of subs providing they are sustained though there is little certainty that we are experiencing a new normal not just a short lived high. There is absolutely zero direct relationship between the UK value of wheat, beef or lamb and the BPS payment rate.</p></blockquote><p></p>
[QUOTE="farmerm, post: 7865737, member: 7195"] Subsidy allow supermarkets to screw us, really? Explain that one to me because that seems rather at odds to my basic understanding of economics. BPS is a pretty minimal part of turnover or even none existent when it comes to supermarket staple of fruit, veg, salad and intensive meat and milk. Do you think Mr Tesco is now going to feel sorry for us and pay more for lower margin per ha crops of cereals, beef or lamb as subs are phase out, are they bollox. Price is driven by supply and demand, not supply, demand and what a producers has received in subs, If sub removal really has any raising effect on the domestic price of a commodity it can occur because of a reduction in supply.... A reduction of supply comes from producers being forced into cutting back or quitting production. There is an argument that perhaps subs do inflate farm costs as they do help drive demand for machinery and other inputs... but subs are not what gives supermarkets the power to screw farmers. The reality of the past few decades is subs have kept the average (or below average) beef, cereal and sheep producer, working average (or below average) land, from going bust in an average (or below average) year. As luck would have it the recent upticks in commodity values may negate the loss of subs providing they are sustained though there is little certainty that we are experiencing a new normal not just a short lived high. There is absolutely zero direct relationship between the UK value of wheat, beef or lamb and the BPS payment rate. [/QUOTE]
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Who else woke up to find their SFP in their account?
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