Farming in the EU Case Study: Home Farm

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Farming in the EU Case Study: Home Farm
CAP (Common Agricultural Policy): farmers recieved 31 billion pounds worth of subsidies a year. This meant that farmers produced as much
food as they could, leading to a huge surplus of food products ('mountains and lakes') in the 1980's
SPS (Single Payment System): farmers get one single payment a year instead of several different subsidy payments
Original EU policies and their problems:
Dairy farmers were producing too much milk due to a fall in demand for milk products like butter
1984 ­ Quotas were introduced and worked out on the last 10 years' average milk production per farm
Farmers were allowed to produce a certain amount of milk and no more. If they exceeded the quota they were fined
In 1992, there was a further reduction in quotas.
Available since 1992 to farmers who were seen to be environmentally friendly by:
o Planting hedges
o Planting woodland
o Providing wildlife habitats
A guaranteed price for farm produce ­ meant that farmers could plan ahead and encouraged over-production
This was voluntary in 1988
Farmers were given 200 pounds per hectare if it was left fallow
In 1992 it became compulsory
Encouraged farmers to set aside their least productive land so productivity still remained high
Guaranteed Prices
The basis of the original CAP policy
Farmers were guaranteed that if their crops did not reach a certain price at market, then the EU would step in and buy their crops at
a price that was fixed earlier in the season
This encouraged farmers to overproduce crops because they knew that the crops would be bought for a fair price
This led to mountains of excess crops around Europe
Diversification: farmers use their farm buildings or fields for non-agricultural purposes to make money, e.g. bed and breakfast, campsite, horse
Location: close to Birmingham. Under 3km southeast of Birmingham International Airport. West of the river Blythe. East of the M42
200 ha (hectare) Home Farm is owned and farmed by Nigel Redfern
Not restricted by physical factors as the land is gently undulating (not steep) with fertile sandy soils and a good temperature climate
(700mm rain/yr). Summer average 16°C and winter average 3°C
So it is human factors such as the market and EU policies that influence him

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Home Farm
200 ha mixed farm (arable and pastoral)
Crops sold to merchants that come to the farm
Livestock (animals) sold at markets nearby (Banbury 60km, Uttoxeter 50km)
Sold his heard of dairy cows and sold his milk quota to other farms.…read more


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