Richard Byrne from Harper Adams University welcomes the radicalism of the new Agriculture Bill but warns it may pose a threat to the viability of smaller farms: May not be enough to sustain smaller farms
He is justifiably concerned about trade relationships with the United States, but one might add that the phasing out of the Basic Payment is also a challenge, given that it represents the difference between profit and loss for many farms. ELMS may involve transaction costs (form filling) that it is easier for larger enterprises to deal with. Smaller farms may also be located in areas where fewer diversification opportunities are available.
But should maintaining smaller farms be a policy objective? Or would consolidating units boost productivity?
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