Single Farm Payment Is by No Means a Subsidy

Summary


If there is one thing that irritates me even more than BBC reporters mispronouncing local place names, or using the word "less" when what they mean is "fewer", it is the description of the Single Farm Payment as a "subsidy".

A subsidy is a payment which enables something to be produced or provided at less than the true cost. The beneficiary of a subsidy is always the consumer. The UK's pre-CAP farm support system, when farmers were given a deficiency payment whenever prices fell below a level fixed so as to provide a fair return, was quite rightly described as a "cheap food" policy.

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Extract


Single Farm Payment Is by No Means a Subsidy

The SFP, by contrast, is the precise opposite of a subsidy. It is paid as income support to farmers, in recognition of the social and environmental benefits that th...

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