Statement
CAP Health Check: an incomplete argument
1/17/2008
Observing the current increase in grain and oil-seed prices, the Minister of Agriculture has concluded that the CAP Health Check will be an opportunity to cut off support to field crop farmers and transfer the benefit to other sectors. The minister has now made explicit reference to the regulatory changes needed to achieve this.
Logically, he now has to make an equally clear and firm statement to grain growers, specifying what resources should be earmarked for times when markets are less buoyant so as to protect them from a decline in income as dramatic as the drop experienced between 1998 and 2005.
The level of grain production is by definition subject to contingencies and, even in a context of strong demand, weather conditions could easily generate surpluses which would be stocked, causing markets to collapse. This is a parameter of agricultural policy no one can afford to ignore.