Why were farm subsidies changed in the 1970s?

Why were farm subsidies changed in the 1970s?

Agrarian reform of 1960

The agrarian reform was a process that included the large-scale redistribution of income, opportunities and other benefits derived from land ownership in favor of the farmer (landed and landless peasants) and society.

The crisis of agricultural activity in Chile had its origin in the landowners’ disinterest in using their land efficiently, a phenomenon that was evidenced, among other reasons, in the lack of modernization of the existing means of production on the country’s land. In the postponement of agricultural development during the industrial development era, the low profitability of the agricultural business together with the virtual impossibility of exporting and the lack of incentives for the promotion of agriculture and its consequent disinvestment. Added to this, the mistreatment and exploitation of the peasant class forced them to migrate to the cities in search of a better quality of life. All the investigations carried out repeated among their conclusions the poor living conditions of tenants and agricultural workers. The income received by the tenants was extremely low, so low that it did not even allow them to have a minimum balanced diet.[1] The income received by the tenants was extremely low, so low that it did not even allow them to have a minimum balanced diet.[1

Benefits of the agricultural reform

(3) A large part of the measures indicated in the notification had already been adopted and were therefore transferred to the register of non-notified aid (aid NN 19/2001). The notified measures that had not yet been adopted were placed in the register of notified aid (N 681/A/2000).

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(5) The Commission decision to initiate the procedure was published in the Official Journal of the European Communities (2). The Commission invited interested parties to submit their comments on the measures in question.

(13) Possible repercussions of the measures: distortion of competition, favoring certain agricultural and livestock products and infringement of the provisions of the relevant common market organizations.

(23) This measure is included in Royal Decree-Law 10/2000, which incorporates amendments to Law 27/1999, of July 16, 1999, on Cooperatives (7) and Law 20/1990, of December 19, 1990, on the Tax Regime of Cooperatives (8). The maximum limit of 50% of the volume of operations carried out by agricultural cooperatives with non-member third parties for the supply of B diesel to non-member third parties is eliminated without losing the status of tax protected cooperative established in Law 20/1990. In addition, Law 34/1998, of October 7, 1998, on the hydrocarbons sector (9) is amended, eliminating the requirement of having to incorporate an entity with its own legal personality to which the general tax regime is applicable for the distribution of diesel oil B to non-member third parties by agricultural cooperatives.

Agrarian reform in Latin America summary

Direct farm subsidies are subsidies that farmers receive directly for obtaining certain agricultural and livestock production, or for maintaining the farmland in good agricultural and environmental condition. They must be distinguished from other types of price and market support measures that indirectly stimulate production, such as market intervention.

However, in order to receive certain aids in their entirety, such as those related to suckler cows or beef slaughter premiums, in Galicia it is necessary to maintain the corresponding productive activity, thus helping to avoid the abandonment of this type of production, since the aid is linked to the corresponding activity.

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On the other hand, new aids were introduced to improve the quality of production or for the conservation and improvement of the environment, such as the additional payment for the dairy sector, the payment to quality beef producers or the additional payment to suckler cow farmers with or without rights.

Agrarian Reform Law

The Department of Agriculture, Livestock and Rural Development is aware of the importance of the agricultural insurance policy for the agricultural exploitation, as it guarantees the stability of the income of the agricultural exploitations of Castilla y León in the face of climatic adversities and animal and crop diseases.

Consequently, one of the key points to strengthen the competitiveness of farms is the subscription, by farmers and stockbreeders, of the corresponding insurance policies that allow them to manage the risk of their farms.

Continuing with this policy of consolidation of agricultural insurance, the Ministry published today in the Official Gazette of Castilla y León (Bocyl) the modification of the regulatory bases of subsidies for the subscription of agricultural insurance policies included in the Annual Plans of Combined Agricultural Insurance.

By means of this modification, the subsidy percentage for policies taken out under line 300 ‘Insurance for fruit farms’, for apricot, plum, apple, cider apple, peach and pear production, and line 317 ‘Insurance with increasing coverage for cherry farms’, which was currently at 20%, is increased to 30%.

Why were farm subsidies changed in the 1970s?
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