Carl Mortished, International Business Editor
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A global shortage of grain has forced the European Commission to propose scrapping a rule that prevents farmers from planting crops on one tenth of their land.
Concern about tightening supplies of important food crops, such as wheat and barley, has prompted Marianne Fischer Boel, the Agriculture Commissioner, to propose ending the rule known as “set-aside” in the forthcoming planting season.
Soaring wheat prices and predictions of a weak European Union cereal harvest are causing alarm bells to ring in Brussels. Worldwide, cereal stocks are expected to fall to 111 million tonnes in 2007-08, their lowest level in 28 years. The EU’s buffer stocks have shrunk from 14 million tonnes in 2006-07 to just 2.5 million tonnes. Moreover, a series of poor harvests, a lengthy drought in Australia and competition for cereals from the biofuel industry have left the world with a sudden shortage of grain.
Ms Boel’s proposal would set at zero the rate for obligatory set-aside, allowing farmers in the EU who believe that they can profitably supply the market to sow crops. “Farmers can still set aside voluntarily a part of their arable area,” she said. The Commission reckons that zero-rating for set-aside would add between 10 million and 17 million tonnes of grain next year, easing pressure on the cereals market.
Farmers get the same payments from the Common Agricultural Policy (CAP) for arable land, whether it is farmed or not, under a reform known as the single payment scheme, which was agreed in 2003. However, the scheme prevents farmers from responding to high prices.
Pressure is growing within the Commission to abolish the obligatory set-aside programme, which stops farmers making their own planting decisions in response to demand.
Ms Fischer Boel is expected to recommend abolition of obligatory set-aside rule in a review of CAP reforms, to be published this year. Some 3.8 million hectares of EU farm-land is under obligatory set-aside. The rule was introduced in 1992 as a reform to the CAP, intended to deal with the growing cost and scandal associated with a mountain of unsold EU grain.
Farmers could claim compensation for set-aside land that had to be sown with grass. The measure has proved popular with environmentalists who attribute a recovery in bird, insect and wildflowers to compulsory set-aside.
Wheat prices in Britain have almost doubled over the past two years as a result of rising demand in Asian markets.
Guy Gagen, chief arable adviser at the National Farmers Union, said that many British farmers would be pleased by the decision to scrap set-aside in the current planting season. “About two years ago, wheat was £65 per tonne; currently, it is £117,” he said. Farmers needed to have a decision soon, he said, as autumn planting of crops begins in August. Typically, British farmers will earn about £200 per hectare under the single payment scheme whether the land is farmed or not, but land set aside yields no profit from crops.
Biofuels are creating havoc in an agricultural market where the impact of industry has in the past been minimal. The International Grains Council predicts that industrial use of grains will rise by 23 per cent to 229 million tonnes in 2007-08, with 107 million tonnes absorbed by ethanol producers.
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Agricultural worldwide production is also threatened by GM modification to crops. Brassica were modified with Bt-Gene added, which causes caterpilars to steer clear - well die actually
'In research done so far, we have found that if you feed the Bt brassicas to diamond-back moth and cabbage white caterpillars they all die within 48 hours, leaving the plant virtually undamaged. If the caterpillars are killed before they reach maturity and breed, then resistance does not develop.'
Unfortunately it also seems to have interfered with the reproductive cycles of bees, crashing the population of bees in the US and in the UK. Bees are vital to one third of our foods, and also to the feeds we need to give animals. Without bees, the human race will starve. A nightmare scenario has been created, as many ordinary people suspected would happen.
This threat has been kept silent out of government embarassment at not having taken the GM crop modification threat seriously enough.
Henry Curteis, LONDON, SW15
The Government actively pursued a policy of sourcing food from abroad it could not use its land mass for a huge surge in population and a sustainable farming policy. In recent years is it has denegrated farmers and short-changed them in a well engineered drive to undermine the price of farming land and its availabilty for building development. The Government even went as far as to decry organic farming, calling it a lifestyle choice rather than a valuable and healthy alternative. How shocked must they be that findings published this week show the extent of the dependency of the poorest on arable crops as opposed to the rich. Is it not self evident that food should be wholesome in itself without having to buy expensive commercial sauces with their sugar, E numbers and high salt. With the help of nature, the importance of farming is to the fore. Biofuels and the rains are making farm produce the new oil, farming is important again and again the Government is not up with the game.
Malcolm Turner, Alsager, England
Harvests are poor, population is growing at one and a half million every week. World grain stocks are declining fast, oil price is so high it makes production of Ethanol more profitable. Increasing agricultural output takes time!
All in all, urban city dwellers are just going to have to pay! However---slimming may be easier!
David Vinter, Louth , L incs., UK.
Buy from the USA. We are still producing tons of it. USA! USA! USA!
William Harmon, Orlando, USA, Florida
Too much of our land is wasted growing animal protein instead of crops. Animal protein is not an efficient way to feed people. We have some of the world's most fertile land and yet we ship in crops from far flung countries. Meanwhile their land is controlled by multinationals and used to grow such non-essentials as tobacco and chocolate. These imbalances need to be addressed if we're to avoid increasingly serious conflicts over scarce land resources.
Steven, Leicester,
Ah yes - another triumph for the central planning fantasy that pervaes Brussels. The 'set-aside' scheme should be applied with vigour to the folk working in the EU: set at 100% the obligatory limit on activity from these pointless beurocrats, and set at 0% the degree to which any "member state" has to take them seriously.
Nick, Rotherham, UK
Half the world starves whilst we grow flowers and grass to look at admiringly
David, Grantham, UK
Just like the soviet central planning disasters that caused so much damage and just like Mao's "great leap forward" the EU's CAP policy has done huge and lasting damage to world food production! At the outset it was a free money club for French & German farmers but it has become so bloated and invasive that it now accounts for a third of the EU budget and what do we get for it?
Time and time again history gives us dozens of examples of how NOT to make mistakes and time and time again we seem to ignore history and make the same blunders over and over again, WHY? Soviet style central planning FAILED! so why is the EU making the same errors? The EU has and is making so many stupid errors in the cause of political and social expediancy that one wonders if the EU commisars were trained in the Stalinist central planning school of thought, which reads somthing like a cross between George Orwells "animal farm" and the "Marxist revolutionary handbook"! Is the EU becomming the new USSR ????
Stephanie Clague, larnaca, cyprus
Check out wikipedia.com on 1816 the year without a summer.What happen in 1816 was short term caused by
natural causes.This time due to mankinds mismanagement
by govenments of the earth, we now will see long term effects that is causing havoc in the from of extreme weather conditions.Its only matter of time when we will see food
shortages and higher prices in the shops.
Michael, Enniskillen, N.Ireland
How many more industrys must the EU wreck before we cry enough!
D Case, Newquay,
The set-aside schemes are a relic of an earlier time when we had wine lakes and butter mountains. They are a somewhat blunt instrument designed to tackle overproduction.
As the problem no longer exists, then the instrument is no longer needed. Farmers should be free to quickly capitalise on the new demand for cereals as the need for support is no longer there.
Roy Ellor, Salford, UK
The empty fields will still be there next year, and the year after. Politicians seem to think that grain production can be turned on and off with the stroke of a pen. Unfortunately thousands of farmers who were told that their services were no longer needed have sold their machinery and found an income elsewhere. You can't store grain in a building that now produces pine furniture.
K Davis, Heathfield,
What a mess. How on earth did we, a industrial nation, allow ourselves to be hoodwinked into having our country run by a landmass controlled by "peasant farmers".
Peter Bolt, Redditch, UK
Is it possible that the day to day issues of ordinary people, including farmers, are really theirs to resolve, where in heavens name did the office people obtain the wisdom/insight which allows them to make these decisions for the people who are closest to the issue ?.
wpo, warsaw, n.y.