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Whether starting with organic farming or modernizing the agricultural machinery park, when farmers want to invest, public subsidies often come into play. Securing income is also becoming increasingly important. Many farmers are now looking at other alternatives to raise extra capital. Alternatives include trading in the Forex Market entrusting their investments to trusted forex brokers like those from https://moreforexbrokers.com/ja/fx-brokers/.

Almost every year, nature has been showing what it is capable of – in a negative sense. The winter too mild, too dry, and too sunny, late April with frost onset as well as heavy rain, hail, and hurricane, for example, thwarted fruit growers and drastically reduced harvest yields. Farmers also have to adapt to new risks in terms of financial security. There is a great interest in new policies. United Hagelversicherung reports more than 11,500 new contracts for a product that ensures storms and heavy rain events in addition to hail.

The Farmers Association sees a learning process on both sides in this regard. The insurance industry has to design new products and farmers have to learn how to use them properly. After all, weather damage can quickly become life-threatening.

Agricultural finance: encouraging investment

Short-term financial bottlenecks can also be overcome with public funding if they are triggered by extreme weather, plant, or animal diseases. If a company can demonstrate a drop in earnings of at least 30 percent in a sector, there is the possibility of receiving liquidity assistance – for example, to buy seeds for the next year.

Weather damage can quickly become life-threatening.

Expansion and modernization investments are also funded. Agricultural businesses can obtain loans of up to ten million euros for up to 30 years. It is important that public promotional loans are only to be applied for from banks. In the agricultural sector, these are often savings banks and cooperative banks. Some of these banks also have credit advisors who specialize in the needs of agricultural businesses.

Leasing as Alternative

In addition to classic loan financing via the house banks, leasing has now also entered the agricultural sector as a form of financing. In the agricultural sector, this is an interesting option, especially for machines that are only used seasonally. Instead of taking out an agricultural loan to buy machines, systems, or equipment, agricultural businesses can also lease these goods. The farmer is allowed to use the leased property during the specified leasing period and pays the lessor the contractually agreed leasing installments. The lessor remains the owner of the leased property. In return, the farmer saves the acquisition costs and the credit line is preserved. The company can deduct the leasing installments from tax.

How the Norwegian Gov’t. and Norges Bondelag Helped Farmers Face the COVID-19 Crisis

October 4, 2020

Lilliana Dutch

The Norges Bondelag and the Norwegian government exemplified the power of unity in helping farmers handle the challenges brought on by the COVID-19 pandemic. Even today, and true to its purpose as a farmers’ union, Norges Bondelag (Norwegian Agrarian Association) continues to work with the government in addressing the challenges that farmers faced during and after border closures and national lockdown.

When Lack of Workers Affected Farm Production

When the Norwegian government closed Norway’s borders in mid-March, foreigners, including seasonal farm workers were not allowed to enter the country. Farm productivity, particularly among fruit and vegetable growers, suffered from lack of workers. At the same time, as schools also closed, farmers had their hands full taking care of their children and in coping with the lack of farm hands to maintain production.

To address the issue, the Norges Bondelag and the Norwegian government found a solution by getting laid-off workers to temporarily work in farms. As an incentive, the Norwegian government offered laid-off workers volunteering for agricultural work; the right to keep 50% of their unemployment benefits even while employed as farm workers.

In June, 2020, although Norwegian borders remained closed, the government allowed foreign workers to enter, for as long as they tested negative of the coronavirus disease. Even up to the present, testing is being done prior to entry, while those who presented negative test results still have to stay quarantined for 10 days, whilst needing to undergo another test on the 5th day of quarantine.

Norwegian employers assume the responsibility of organizing and financing the costs of testing and quarantine measures and in working out arrangements for related cost recovery. Only those who completed the 2 tests and the 10-day quarantine period can move forward with their seasonal employment contracts. In addition, quarantine measures remained strict because workers have to stay confined to their respective workplace during breaks and day offs.

As Restaurants Closed and Tourism Out, Farmers Struggled with Little Income

While the government strictly imposed mitigation measures to prevent the spread of the infectious disease, restaurants to whom farmers supplied their agricultural products and services went into lockdown — leaving farmers with meager income from their farm produce. Agri-businesses were constrained to sell meat and dairy products at low prices in observance of the country’s price control and market regulation policies.

While farmers took the risk of keeping up agricultural production with not enough workforce, the Norges Bondelag helped farmers who lost their restaurant direct sales, receive crisis relief funds. As part of the Norwegian government’s crisis package for the small business sector, economic stimulus packages were made available to business owners and farmers as financial support in mitigating the long-term effects of the pandemic.

Dealing with the Continuing Threats of COVID-19

As farmers, farm workers, veterinarians and farm product handlers and purchasers continue to face the threats posed by COVID-19, the Norges Bondelag and health authorities worked together in formulating health and safety guidelines. Health and safety protocols must be adopted and observed in farms and in agricultural manufacturing and processing plants. .

Aside from the hand-washing, fever-checking, face-mask wearing and other routine mitigation measures, farmers and food purchasers were given behavior guidelines when visiting farms and plants. Moreover, every farm has to have an emergency plan, particularly in dealing with cases where the farmer himself becomes infected Such plans include actions to take in alerting visitors and in obtaining a replacement as economic support through a farmworker replacement program.

In the meantime, Norway’s financing institutions stood ready to grant consumer loans, including payday loans called “lan-uten-kredittsjekk” (loans without credit checking) to Norwegians seeking to obtain emergency funds. However, as some unscrupulous lenders took advantage of those who are not familiar with how payday loans worked, providing loan applicants with information became necessary.

We at Långuiden.no (långuiden.no/lan-uten-kredittsjekk/) can help loan applicants find the best Norwegian bank or financial institution that offers the most reasonable interest rate; as well as the most considerate repayment scheme. .

Profitability of Urban Farming

September 15, 2020

Clarice Clair

Given the circumstance and situation that we have in recent times, people are beginning to think of healthier alternatives to earning and living in general. Because of this, lately, urban farming has been in the spotlight and has been quite the talk of the town.

Urban vegetable farming is cultivated year-round and so provides an earning capacity that can be quite profitable in the long run, which therefore offers great opportunity to step higher up on the financial ladder.

It’s truly a treat how small-scale farming can lead to big time earnings.

Expanding The Agricultural Industry to Guarantee Food Security

August 17, 2020

Clarice Clair

The digital age has done so much for people. Advance technology has allowed faster and easier communication among individuals and businesses.

It has also been helpful to the agricultural industry. It has given farmers the ability to reach out to bigger markets. This made business transactions faster and more economical. It also allowed small-scaled farmers convenience and higher financial gains.

Howard Buffett: Farming and finance

As we all know, Agriculture plays a significant role in a country’s economy. The demand for agricultural products is increasing. This is true because of the booming population. Food is the utmost priority of every nation around the world. Thus it is significantly important to expand agriculture in all corners of the globe. This will give our farmers the opportunity to gain more. It will also guarantee mankind’s food security and poverty reduction.

Agribusiness Taking a Huge Jump with Modern Farming Methods

June 9, 2020

Esmee Leila

Just like in any other industry, continuous innovation is extremely important such as in cryptocurrency. The same thing goes in modern agriculture. Now, the industry is facing major challenges from shortage of labor, rising supply cost, changes in consumer preferences for sustainability and transparency and so on. There’s actually increased recognition from agriculture corporations that there should be a solution introduced to deal with these challenges.

In the past decade, agricultural technology has experienced massive growth in terms of investment with around 6.7 billion dollars in the past 5 years and 1.9 billion dollars just last year alone. Significant technology innovation have centered on the following:

Indoor Vertical Farming

This helps in increasing crop yields, reducing the impact of farming on the environment by means of cutting the distance traveled by supply chain from their facility to the farmer’s land and lastly, overcoming limited land area.

Basically, indoor vertical farming may be described as the practice of growing crops and other produce that’s stacked one after another in a controlled and enclosed environment. By making use of shelves that are vertically mounted, it helps a lot in reducing the amount of space required in growing plants than using the traditional farming methods.

Farm Automation

This one is linked with “smart farming”. It’s a technology that improves farming efficiency and automating production cycle of livestock and crops. As a matter of fact, there are more and more companies that are working on research and development for robotics innovation in developing various machineries focused on farm automation like:

Robotic harvesters
Autonomous tractors
Drones
Automatic watering and;
Seeding robots

While the technology is still a new concept, the industry sees a big jump from sticking to the traditional agriculture methods to modern and automated farming process.

Livestock Farming Technology

Conventional livestock industry is actually a sector that’s usually overlooked and at the same time, underserviced. Still, it is without a doubt the most important. Livestock is providing the needed natural and renewable resources that we depend on daily.

Proper livestock management has known for being the core of poultry farms, cattle ranches, dairy farms or any other livestock related agribusinesses. Livestock managers should keep accurate financial records, supervise workers, ensure correct feeding of animals while guaranteeing proper care as well.

On the other hand recent trends showed that the technology is revolutionizing the world of livestock management. There were new developments for the past 8 to 10 years which makes tracking and managing livestock a lot easier as well as data driven. This technology comes in form of genetics, digital technology, nutritional technologies and a lot more.

The World Stands Still But Agriculture Continues

June 6, 2020

Clarice Clair

The corona crisis can also be felt in agriculture. In addition to negative effects, there are also some positive ones. While the government has promised financial help to businesses affected by the virus, there is also financial help (https://www.southeasttitleloans.com) being extended to small farmers who continue to make a living despite these trying times.

Empty supermarket shelves tightened hygiene measures and the curfew, also the farmers from the region are affected by these headlines. In the current situation, the work of the farmers is again appreciated. The hygiene measures are no problem for the farmers because there are already following stricter hygiene regulations in animal husbandry, which the farmers are already familiar with and are correctly implemented. Added to this is the increased hygiene on the tractors in arable farming. Consumers are currently noticing that, especially in times when social life has almost dropped to zero, essential things are of great importance. And that includes the food that is produced daily by local farmers. Citizens are becoming aware that the foodstuffs from the immediate vicinity have not had long delivery routes and can, therefore, be offered quickly in the respective sales outlets.

The food supply is thus ensured without being dependent on the stopped import. There is a high season on many farms right now, although the public life around it is almost at a standstill. Liquid manure is currently being spread on many fields in order to fertilize the soil with natural fertilizer and thus supply it with important nutrients so that fertility can be promoted. This measure can be carried out by the farmers in the current time without major impairments. Large slurry spreaders are usually used, which many citizens find to be annoying in road traffic. Since there is currently less traffic on the roads due to the exit restriction, it is easier for farmers to cover the distance between farm and field without problems. On the way, these are now increasingly greeted by citizens in a friendly manner, which of course also pleases the farmers that their work is valued again in this difficult time. The sowing of corn and sugar beet is also currently observable. Consumers can see that farmers also use the tractors to work and not just to go to demonstrations.

Events postponed

But home farmers are also feeling the consequences of the corona crisis. The farmers from the Landshut region and the surrounding area had planned an information event with the motto “Citizens, farmers, snacks”, which would have taken place in the Gasthof Zur Insel at the end of March. At this event, there would have been a discussion round on modern agriculture and a question and answer session for everyone interested. This had to be postponed until further notice. A new date will be announced. And the annual farm information day, at which interested parties can experience first-hand an insight into agricultural production at a member company, must also be canceled this year. The Court Information Day will take place again in 2021, and a suitable venue has already been found.

Food supply ensured

The farmers, who lack seasonal workers, have problems, but the entry for harvest workers is to be made possible shortly. There are no major consequences of the corona crisis in animal husbandry and agriculture. Slight scarcities can be felt on the feed market and contact with the authorities can only be made by phone, but this does not restrict farmers in their production. African swine fever is currently of greater concern, as it poses a great threat to pig farming. Otherwise, farmers can continue to produce without major problems, which is why the supply of food from the region is still ensured.

Will CARES Act Be Equitable for Small Farmers?

March 27, 2020

Lilliana Dutch

The U.S. agricultural sector more than welcomed that news that the CARES Act includes financial aid and other forms of relief for farmers.

Out of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $9.5 billion disaster relief program was created to provide disaster relief to members of the agricultural sector. Even more welcome is that the relief money for specialty crop producers, livestock and dairy producers, as well suppliers of produce for farmers markets, restaurants and school cafeterias, is separate from the funds allotted to the Commodity Credit Corporation. The CARES Act also extends financial assistance that will enable the credit entity to extend 12-month loans to those who suffer losses.

Based on an economic analysis undertaken by the National Sustainable Agriculture Coalition (NSAC), the loss of access to direct markets as a consequence of social distancing and shelter-in-place restrictions will result in loss of direct market sales amounting to as much as $1 billion among small U.S. farmers.

Concerns Raised by the NSAC Over the CARES Act Relief for Farmers

While it is true that legislators of the CARES Act remembered to include small farmers among the recipients of disaster relief funds, concerns are raised on how the stimulus package will be administered by the USDA. The NSCA pointed out that the legislation did not provide directions on how the USDA should distribute the funds, nor specify loan payment structures.

Moreover the NSAC is wary that there will be a repeat of history in which smaller-scale farmers who sold their crops and produce in farmers’ markets, did not have first priority, nor had access at all, to the relief funds. Notwithstanding that this group of farmers, particularly those who are already experiencing systemic disparity, have fewer resources to support them in times of economic crisis and financial hardship.

The Plight Faced by Small Farmers During the Ongoing Covid-19 Crisis

In counties and communities under lockdown and where citizens have been mandated to shelter-in-place, many farmers’ markets have been ordered to shut down. Orders came after health authorities noted that the conditions in farmers’ markets made it difficult for consumers and sellers to maintain social distancing.

In San Diego City for one, farmers’ markets were immediately met with permit cancellations. Still, they were subsequently granted permission to operate as essential service providers. During the week however, not a few farmers’ markets in the city had to shut down due to the limitations imposed by social distancing and public gathering mandates.

Even if there is a great demand for farm produce, which farmers are capable of supplying, the problem presented by the Covid-19 crisis is that people cannot just converge in farmers’ markets where social distancing is next to impossible. Although some have taken alternative marketing steps by selling and offering to deliver their farm products via the Internet, not all small farmers possess the technical knowhow or ability to carry on with such strategies.

The stark possibility that looms ahead for many farmers doing business in this city, is that once the Covid-19 crisis is over, there will be a need to seek legal assistance from a bankruptcy attorney san diego based.

Uses Of Agricultural Loans

March 20, 2020

Brenden Carlisa

Loans, whether short term or long term, secured or unsecured, could be very helpful for many persons and businesses. Citrus Loans, for example, offer a broad array of loan options and alternatives that could match and meet your needs for credit. If borrowers aren’t successful at applying for a loan in one of their major products, they do still have other alternatives that could fit the borrower’s needs.

In the industry of agriculture, farmers could also apply for a loan to use in their farming business. Just like any other form of business, operating and managing a farm or any agricultural business comes with its own set of challenges as well. Although the industry of agriculture has its particular challenges to surmount, there is a challenge that individuals in the industry of agriculture, such as ranchers, farmers and entrepreneurs, that similar to other business owners encounter form time to time, the need for capital and other financial concerns.

It is without a doubt that owning and running a ranch, a farm, or any other business under the industry of agriculture go together with immense heavy expenses and financial needs which are usually used to buy large heavy ranch or farming equipment, purchasing land, and/or for paying their employees and business operations. Frequently a business owner couldn’t deal with such financial challenges alone, and these expenditures could swiftly stack up if left unsettled, leaving business owners, even the most equipped, struggling to keep the business going. This is where agricultural loans enter.

Agricultural Loan Uses

Agriculture or Agricultural loans are purposely allotted for agriculture use, and careful and responsible use of the loan could aid in the success of your agricultural business.

But prior to applying for one, you have to formulate a plan on how to use the loan the proper way, primarily where and what you need the money for as well as how much you need. Below are some agricultural loan uses to consider so you won’t end up mismanaging your funds.

Procure Equipment and Supplies

You can’t efficiently operate a farm if you lack the equipment specially designed for your farming needs, such as tractors, silos and irrigation systems. Great-quality, reliable farm equipment would last a bit longer and make job much easier, however such equipment could be quite costly since you have to take into account operational costs and supplies such as fuel, repair and maintenance, seeds, fertilizer and others. So, assess what equipment you need, whether you need a new one or would only need repairs. Additionally, compare prices so you could determine how much you need to loan and that you would be able to pay it off.

Covering Cost of Land

Agriculture loans could be utilized to buy or lease a land. Buying or leasing a farmland could be complicated. Moreover, the type of land you require will rely on the type of farming you intend to do. Again, evaluate your needs and decide the amount you need to borrow.

For Land Enhancement & Repairs

Farms require regular upkeep to run efficiently and productively. Agriculture loans could be utilized for pricey improvements or repairs/maintenance to land and/or infrastructure. However, such improvements and upkeep could help further the value of your land, better your products and make more efficient your business. With consumers being very conscious nowadays, you’ll need to keep with most recent trends in land care as well as ethical farming.

Other Uses:

Refinancing of a Previous or Older Loan
Advertising and Marketing Efforts
Covering Costs of Operation
Rebuilding Following a Natural Calamities

The Coronavirus Infected All Agricultural And Raw Materials Market

March 14, 2020

Clarice Clair

The cornavirus has meanwhile infected all agricultural and raw material markets. Panic is spreading because the possible effects of a global pandemic on the economy and trade cannot be estimated.

“Due to the rapid spread of the corona virus, agricultural markets are driven solely by negative market sentiment and not by the fundamental data of supply and demand,” says a US market analyst.

Impact of COVID-19 on Agriculture

Prices for grain and oilseeds on the futures markets already fell significantly on Thursday . In the USA, pork was also down sharply. Agricultural prices are thus following the further drop in crude oil and energy prices. And also today, the grain and oilseed markets in the US are showing deep red signs in pre-exchange trading . This will also pull prices in Europe down on today’s trading day. They also had to give up on Thursday.

In addition, the agricultural markets no longer perceive positive or fundamentally good news: for example, that container trade in China is gradually starting up again and that global trade flows are slowly picking up speed again. Certain prices on the US stock exchanges fell to new lows on Thursday. US wheat plummeted along with the stock and energy markets to their lowest level in two and a half months.

It was the worst week for the global equity and commodities markets since the 2008 financial crisis. Hopes that the coronavirus epidemic would be over in a few months and economic activity would normalize quickly were dashed.

Mitigating the Threats of a Covid-19 Plague

February 29, 2020

Lilliana Dutch

Risk management and mitigation plans are about to be tested as the world is currently confronted by threats of a Covid-19 plague. No one knows for sure how and when the epidemic will affect a country, but the World Health Organization (WHO) and the Centers for Disease Control (CDC) is urging everyone to prepare.

U.S. president Donald Trump is brushing off the threats of an infectious disease epidemic, stating the opposite of what expert health officials are saying. Trump also claims that a vaccine that will cure the coronavirus infection is already underway. Yet the CDC is keeping everything transparent; letting the public know that even if scientists are at work to develop a cure, testing and production of the vaccine will take 18 months at the least.

Moreover, during the initial stages of the vaccine’s distribution and administration, treatment of those who are already infected will be the first concern. The rest will just have to stay safe by following the precautionary measures recommended by health officials; until such time that the vaccine has been mass produced.

Since the CDC cannot say when the spread of the Covid-19 virus will reach epidemic levels, business owners, experts in residence property management, employers, administrators, operators and community leaders, must start applying their mitigation measures in order to make less severe, the impact of a Covid-19 epidemic.

Why is Risk Management and Mitigation Important?

First off, know that risk management involves identifying the wide variety of threats that an institution or organization faces. At the same, it requires finding and/or formulating the most effective solution to control or prevent the impact of such threats when any becomes a reality.

The CDC has confirmed that there are now two cases of person-to-person communication of the Covid-19 disease; one in California and another in Illinois. It has therefore become inevitable that the contagion will continue to spread, while the agency continues to track down persons who need to be quarantined.

The moment the spread of the novel coronavirus became inevitable, the CDC took another step in mitigating the risk faced by the nation. The act of informing the public, raised awareness about the need to protect oneself against potential infection. The CDC announcements have made more people attentive to the dangers posed by crowded places and of holding or attending social gatherings.

Rather than resort to self-medication, sick individuals will seek professional medical attention and care. When diagnosed as infected, they will readily agree to be kept in isolation in order to avoid the disease from spreading further.

Infectious disease outbreak is an occurrence that can greatly affect public health. It is also a risk faced by the economy because poor public health will lead to loss of wages or earnings and eventually, inability to buy, attend, participate or take part in any economic activities.

Inasmuch as 70% of the country’s economy relies on consumers and their spending, it is important therefore to mitigate the impact of such risk as early as possible.

The Farm Bill and the Cannabis Stock Market

February 23, 2020

Clarice Clair

Generally, politics has been a strange fellow for some. This applies true to the weed industry when both the Senate and the House approved with an agreement on the Farm Bill that helps to have marketing plan development for your crops. The current edition of this bill has an aim to legalize the industrial marijuana. Credits to Mitch McConnell, the Senate Majority Leader who pushed through this bill and firmly argued the great advantages to the economy of legalizing the weeds. Moreover, this bill also makes the regulation of the weed be covered under the control of the Department of Agriculture of US and not of the Department of Justice.

The History of the Farm Bill

Farm Bill of 2014

This bill is the beginning of legalizing cannabis. The programs of those university-affiliated agricultural researches are permitted to cultivate hemp plants under this bill. But, it should be provided that those institutions are registered under the Department of Agriculture.

Unfortunately, the bill expired and the renewal was blocked by arguments from the Supplemental Nutrition Assistance Program (SNAP). There were also arguments and disagreements coming from the forestry practices. This basically originates from the wake of the fires within California.

Farm Bill of 2018

Compared to the previous Farm Bill, this bill of 2018 is more complex. It imposed to regulate the distribution of about $867 billion cannabis for the range of five years. This were conducted via a range of agricultural and food programs.

The Effect of the Farm Bill

Basically, the kind of help that weed farmers and producers really need is the legalization of their product.

Due to the approval of the Farm Bill, hemp legalization has taken into place. This makes the cannabidiol or CBD, an active constituent of hemp, produced legally in different states. Its production and distribution had experienced a great blast as the cultivation, transportation, and sale of the weed products can be done without restrictions. Due to this economic effect, the Director of Research of Brightfield Group, a cannabis research company, stated that they are expecting the cannabis market to greatly explode. The sales of cannabis products would hit around $22 billion by the year 2022 which is generally greater compared to the industry of cannabis in US.

Moreover, there are giant movers within the cannabis industry by now. They are actually big players in the industry and total game changers for this kind of market. To name a few, here are some well-known cannabis companies:

Canopy Growth (CGC)
Aurora Cannabis (ACB)
Cronos Group (CRON)
OrganiGram (OGI)
Turning Point Brands (TPB)

Plus Points of Transitioning to Homesteading

January 28, 2020

Esmee Leila

Americans most of the time think that to it demands miles of farming machinery and farmlands needed to supply food for everyone. That they have learnt to accept the fact that we need large-scale industrial agriculture combined with GMOs and chemical inputs. Otherwise, we would face starvation. At the same time, people have a notion that we need acres of land in order to grow food of your own. But in reality, this is a false belief.

Do we Really Need Acres of Land?

Much like with millions of smallholders and farmers worldwide would tell you, it will depend on the size of your family and quality of land you own. You could actually grow any food you need in a limited space. What it only needs is to plan for a food production system that works along with natural processes in an effort to make with what you have.

If you wish to develop land for your personal food production, then you may need at least 2 acres of land. In this land area, you already have solar energy needed to run your house, enough to be self-sufficient. Following are examples on how you could make the most of your property:

Growing Power – on a 2 acre urban lot, you could grow almost a million pounds of food annually which include fish as well as livestock inventory like:

Bees
Goats and
Chickens

Urban Homestead – for a family of four that is producing majority of their own food and 60,000 dollars yearly, 1/5 of an acre will do.

Homesteading is basically the transition phase from your current lifestyle into something that is centered on producing things and growing foods for yourself and family. This is in an attempt to be less dependent.

The Shift

First of all, there are so many benefits associated for producing and growing stuff for yourself. Among the benefits you can enjoy would be the health benefits. Eating foods that are free from chemicals and toxins that most manufacturers have in their products nowadays is one of the vital aspects why growing our own meals is critical.

Say that you are serious to make the transition to homesteading, then the very first thing you must know is how to grow vegetables and fruits on your own. Gardening is a critical skill for homesteading. You need to know how you can stand up on your own before going off the grid. But if you’re serious with this move and ready to make it quick, you can take advantage of lawsuit loan with a fast pre-settlement funding.

Importance of the Common Agricultural Market

January 14, 2020

Clarice Clair

Understanding Food and Agriculture – Agriculture Policy

For farmers:
Protection from competition is a positive aspect because farmers have priority in supplying the European Union.
However, the income problems are not resolved as the income inequalities within agriculture widen.
Prices were increased due to the pricing policy. However, this policy failed because the increases did not bring enough profit for the small businesses and the large, thriving businesses made an even higher profit.

For the state:
The state saves subsidies because consumers pay through the prices for protecting agriculture. But the state has to spend billions on it because eliminating overproduction is very costly. Without the agricultural market, there would be no EU. The common agricultural market is essential for important EU partners. However, protectionism is questionable. The EU’s self-sufficiency is disrupting world trade.

For consumers:
Consumers are safely supplied, and protecting agriculture promotes EU self-sufficiency. But, consumers pay twice

-As a consumer for price support and

-As a taxpayer for surplus disposal.

Prices don’t go up and down, which means a relative price rest for consumers.
Competition is eliminated because cheaper world market offers are not used.

How Globalization Affects Farmer Operations

December 21, 2019

Clarice Clair

The period of the last fifty years has been characterized by the continuing globalization of economic life. We want to find out what globalization means for individual farmers and its impact on agriculture as a whole. In the following, globalization is first briefly discussed as a general phenomenon. The situation in the Netherlands cannot be viewed in isolation from that of the EU, which is why the EU’s common agricultural policy and the changes therein are subsequently examined.

Farmers With A Future – Globalization Impact On Farmers of Netherlands

It is argued that this includes both resistance to unregulated globalization and surrender to the globalization process. The question is answered as to what the most important consequences of this globalization process are for Dutch farmers.

Globalization is not a downpour

If rules are made in the context of the World Trade Organization to liberalize trade between countries or around intellectual property rights, this is part of the globalization process. Globalization as a project is about the neo-liberal idea that having a large world market, with minimal government regulation, creates an ideal world order with the best opportunities for prosperity growth. From the neoliberal point of view and the idea of globalization as a project, people agree with this by stating that the only option is to go along and adjust as well as possible. The idea that countries also have their own policy space and can make choices is dismissed as wishful thinking .

The American economist and Nobel Prize winner Joseph Stiglitz rightly states that better rules are needed to guarantee fair globalization.

Globalization and agriculture: markets and food chains

With most agricultural products you see traditionally that what is produced locally or regionally is also consumed to a significant extent in the same location or region. That has recently changed. Since 2000, world trade in food has more than tripled. Some regions are increasingly dependent on food imports and this trend is also expected to continue in the future.

The countries in the Middle East that are members of the Gulf Cooperation Council even have eighty to ninety percent of their food requirements dependent on imports, of which a significant part must come from the Black Sea area with are vulnerable supply lines. Other regions the US, Latin America, One of the main driving forces behind this development is the development of demand and consumption patterns, for example as a result of increasing incomes, population growth, and urbanization.

The EU agricultural policy: from protection to market orientation

With the establishment of the European Union, there is a situation in agriculture that I would like to call one of balanced internationalization. The EU agricultural policy was very much in line with the agricultural policy that the member states already had before. Afterwards, Since the great agricultural crisis of 1880 , the protection of agriculture in many countries has not disappeared from political reality. In exceptional cases, a few countries continued until 1930 to strive for a completely free agricultural market.

Later, during the Great Depression of the 1930s, great poverty and misery forced each country to make far-reaching changes in agriculture and agricultural markets. An important motive for the protective agricultural policy was that agricultural markets are unstable and world markets disturbed and that there is a permanent risk of overproduction, structurally falling real prices and low agricultural incomes. A common market was formed with the creation of the European Union. Trade in the EU, including agricultural products, should be able to take place freely.

First of all, it was about internationalization within a limited space, namely that of the six member states, with which the EU project started.
Secondly, it was important that the prices that countries settled against each other were not the often low world market prices, but the higher EU prices.
Those prices were higher because the EU pursued a price support policy and price stabilization policy at the same time.

The implication was that there were trade defense measures at the EU’s common external border.

This change of course has since led to the abolition of price support policy for almost all products. EU exports have indeed grown substantially. The result is that the prices that farmers receive are now largely determined by developments as they occur on the world market. In practice, this means that Dutch agricultural prices partly depend on what is happening in Asia, with China in particular being a very important country.

With the present global economic condition, there is a huge chance that farmers are going to suffer its effects. For some farmers, meeting the demands of the market becomes a challenge that they result to taking out small loans from agencies. While this move is not the wisest, it is the quickest to keep farming operations going.