Irish farmers want more subsidies

I am disappointed to hear that the Irish Farmers Association is calling for more subsidies – and ridiculous ones at that. The value of the pound has dropped, so as Irish farmers export a large amount of their produce to the UK, the price Irish farmers receive has dropped as well. Now the IFA is calling for Irish taxpayers to make up the difference.

So Irish farmers, who already survive on subsidies (an Irish sheep or beef farmer receives around 50% of their income from subsidies) want yet more money from the government. Money that is taken from other productive sectors of the economy.

However the rest of the economy is suffering at the moment too. No-one else can afford to pay more tax to prop up farmers. Subsidies need to reduce in these hard times, not increase.

New Zealand farmers suffer too with changing exchange rates. They tighten their belts and weather the hard times. That is the nature of any export industry. You can’t expect the government to pick up the tab whenever the market shifts.

In my dealings with the IFA I have found them to be sensible people who want the best for Irish farmers. However they appear to be so used to subsidies now that their automatic response to hardship is to get the government to fix it.

Much as I support Irish farmers, I do hope the Irish government declines this short-sighted request. The EU is already reintroducing export subsidies, which will benefit Irish farmers while damaging agriculture in the rest of the world and draining money from other sectors of the European economy. There is no need for more of this foolishness.

Hat tip: Homepaddock

Electronic tags on hold

National has promised farmers they will not commit to the National Animal Identification and Tracing scheme until after a full cost-benefit analysis. This is very good news. NAIT is a big-brother style scheme that would see every cow and deer in the country recorded on a central database, with the facility to record every sheep and goat as well in the future. Every animal must have an electronic eartag.

The idea behind NAIT is to provide full “paddock-to-plate” traceability of meat for European consumers, because such traceability is something the EU has implemented and EU farmers don’t find it fair that they have such regulation thrust on them yet their competitors (such as NZ) don’t do the same. And certainly, it isn’t fair. The EU should be ditching it, not expecting us to follow suit, but that is another story.

Anyway, paddock-to-plate traceability of meat is a myth. The tags get chopped off along with the head as soon as the animal is slaughtered in the works and it is very difficult to know what animal the meat coming out the other end actually came from. And for some cuts (like mince), the meat comes from hundreds of different animals all mixed together anyway, with traceability being completely impossible. We already have tags in all cattle, and plenty of farmers have stories about animals they believe have been mixed up in the works. Electronic tags won’t change that at all.

The system could also be used to help control disease outbreaks as theoretically the location of all animals would be known on a central database. In practice this won’t work, because as soon as you bring in such a system there is a motivation for people to not record some animals for various reasons such as home-kill meat – these are known as “ghost sheep” in Ireland and are very common. This completely undermines the value of the database.

One major concern is that the database could be used for other purposes, possibly against farmers. There is a strong precedent for this in New Zealand – in 1974 the firearms database was used to confiscate legally owned pistols from many people for example. The Federated Farmers have been concerned that the data could be used to enforce the ETS, or do who knows what.

I have no problem with the market providing a voluntary scheme if that is genuinely what consumers want. But I have yet to meet a consumer who cared about what precise animal their steak came from – most would prefer to not think about it coming from a cute cuddly animal at all. They just want to know that it is safe. This is a socialist scheme being pushed by the EU, for political purposes, and I hope National has the guts to leave it voluntary.