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              and their customers, for 2013 when it will be withdrawn and all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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