Compensating Grain Growers

Sir, - I refer to recent articles in your newspaper concerning the EU Court of Auditors' report which referred to grain growers…

Sir, - I refer to recent articles in your newspaper concerning the EU Court of Auditors' report which referred to grain growers being over-compensated by EU payments in the last number of years.

The fact is that grain growers were not over-compensated but received direct EU payments in accordance with what was agreed in CAP Reform in 1992 - i.e., direct aid for lower support prices to compensate growers for producing crops below the cost of production.

The maintenance of a reasonable income from grain growing is becoming more difficult all the time when one considers that this year's grain prices were similar to those paid back in 1976. But production costs have increased by over 200 per cent since then. Even with area aid added to this year's prices, total returns to grain growers failed to match the rate of inflation since 1976.

In the meantime the price of a loaf of bread (white 800g) has increased by 310 per cent from 18p to 74p. The price of stout has increased by 400 per cent from 40p in 1976 to £2 in 1997. It is no wonder that there are only 17,000 grain growers in 1997 compared to 90,000 20 years ago. - Yours, etc.,

READ MORE

John O'Mahony,

Chairman, National Grain Committee, Bluebell, Dublin 12.