Tuesday, November 30, 2010

Farming in recession

Cuts to come from everywhere
Given that agriculture is an industry in IrelandI feel that we must (and will) all share the painand agriculture is no exception. The current schemes are designed to help small farmers (which it does) actually aids the bigger farmers far more. Big farmers can benefit from economies of scale while obtaining grants per head of stock which are likely to be far greater. As a result the large processing corporations are able to set lower prices for goods. It is possible that if some welfare schemes are reduced then the agricultural industry as a whole would become more efficient.

The report outlines possible areas for cuts, these include the Farm Assist, Suckler Cow Welfare Scheme , forestry grants, Fallen Animal Scheme and Disadvantaged Area . It is also believed that cuts will follow the guidelines set out by Colm McCarthy in the Snip report. These areas include a 30% cut in Suckler Cow Welfare Scheme and the Disadvantaged Area Scheme which would amount to savings of €110 million.

Its expenditure has also dropped by €200m in the last 12 months following cuts to the DAS, SCWS and Fallen Animal Schemes and the closure of programmes such as REPS4 and the Early Retirement.

Given that some of the schemes are “100% funded by the Irish taxpayer” it is only fair given cut
backs in all sectors that the farming industry shares some of the burden. It may only a small pebble in the €85 billion borrowed yesterday but we’ll have to start somewhere.

http://www.independent.ie/farming/imf-axemen-target-euro400m-of-farm-cash-2432277.html

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