Does Alistair Darling's letter to the other EU finance ministers, suggesting the scrapping of the CAP, show that the government does not care about Agriculture in the UK? Even more worrying, does it show a distinct lack of understand of public perceptions and the UK Economy?
The Government seems only to care about the inflation figures and how it will reflect on them. Do you see this theme of self-preservation from my last Blog, again?
But just because farmers are making a little profit, will the removal of Farm Subsidies help the "Inflation Figures?" Not for this recession, that's for sure.
In fact it will cause inflation to rise in the short term with no prospect of it coming back down again. More small farms going out of business. Large farms getting bigger. Fewer suppliers in the UK!
The current situation of high food prices is not a result of greedy farmers pushing up farmgate prices because supply is low and demand is high with world food. In fact its more about large corporations protecting profit margins for shareholders than value for money for the consumer.
Alistair Darling is worried about the impact of food price rises upon inflation. I hope he used his food summit on Thursday (22nd May) to talk to the Supermarkets about distributing a more proportionate part of their profit to the farmers and ensuring they have a sustainable future. Then we might be able to discuss the lowering of CAP subsidy as the EU itself is planning.
So what are Ministers doing? Are they on a wrecking spree? Are they out to destroy the UK farmers the way that Maggie did with the Miners?
If the CAP is dropped suddenly, food prices are guaranteed to increase substantialy. UK farmers will rightly put up the farmgate price, to replace the income lost, or go out of business. If it's the latter suppliers will have to purchase on the world market and we all know there is less food to go around which will drive prices higher still.
I would suggest that if there is to be a recession it is going to hit hard. The government does not want food inflation to impact on the countries economy and is happy for Food to be imported at the cheapest price.
Except that cannot happen. World food is already in short supply. Import price will not stay low for long. So the future still looks rosy for British Agriculture.
UK Agriculture can help the UK and World economies if it's given the helping hand not the Boot of the British Government.