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Pros and Cons of Subsidies for Farmers

Brexit is ushering in all sorts of permutations in different areas in the UK and abroad.

With the UK farmers in mind, it has been noted that the government is muting to introduce subsidies for farmers in order to allow them to be competitive against other farmers from the European region. This will be in addition to the subsidy program which rewards UK farmers for good environment-friendly farming. Considering this, we take this opportunity to highlight to all farmers the pros and cons of subsidies.

Harvesting

PROS

Offer Stability and a Safety Net

The main reason why the government is muting to offer farmers subsidies is that it wants them to remain stable after a tumultuous Brexit. There is no doubt that all sectors in the economy will be shaken when Brexit is finalized. As such, in order to ensure that food supply remains at the optimum level, the government is looking at offering farmers a safety net.

Income for farm workers

With perceived instability on the horizon, if Brexit is finalized, the government is afraid that this may cause some farmers to fail in settling their wage bills. As such, to guard against this, the government seeks to help farmers financially so that they retain their working staff and, in the process, they stop the mass influx of unemployed people into the urban areas.

Enough food for all

Though economists and other think tanks are already releasing their predictions as to what the UK will look like after Brexit, there is still a worry within the government that Brexit may lead to unstable supplies more so in the food department. Therefore, if the farming sector is adequately financed, it can feed the whole nation.

Reduce the need for imports

Closely related to the above, reduced output from the farmers may mean that the country must import food. With the UK still trying to negotiate better deals with the rest of Europe post-Brexit, it may fail in its endeavour to secure favourable trading terms hence it will have to spend more than necessary to feed the nation from imports. As such, in order to guard against this, the government seeks to reduce the need for imports by ensuring that farmers are adequately financed.

CONS

Lack of diversity

In as much as subsidies may go a long way in ensuring food security for the UK, subsidies may also lead to a lack of diversity. This is because farmers will be forced to farm certain crops for them to be eligible for the subsidy program.

Government interference

While the government may only be looking to ensure that the nation is fed post-Brexit through starting the subsidy program, some farmers may not see it this way. Rather, they may think that the government is interfering in their business. This only creates animosity which is detrimental to production. To guard against such, there is a need for the government to ensure that farmers seek alternative sources of external funding other than the government involving itself in the farming business. These alternative sources of external funding may include farmers applying for loans from financial institutions, rebates from paying tax or even giving farmers leeway to engage in such practices as gambling that offer a good source of ‘free’ funds. There are some profitable Novibet casino games that farmers can engage in.

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