B Explanatory Memorandum
1
1. All Governments are disinclined to a l l ow t h e price of foodstuffs to increase. The p o l i c y i n most c o u n t r i e s is t o m a i n t a i n present p r i c e s b y subsidies.
2. The f a r m e r s ' costs are rising all the t i m e . There is on an a v e r a g e a 4 % annual i n c r e a s e . in gross a g r i c u l t u r a l p r o d u c t i o n in most countries. Markets have not been as s t a b l e as i n t h e p a s t , a fact which has c r e a t ed difficulties for farmers, who must accordingly a d o p t t h e most efficient m e t h o d s of p r o d u c t i on p o s s i b l e .
3. Stability among t h e a g r i c u l t u r a l comm u n i t y as also t h e s e c u r i t y of Member States r e q u i r e t h a t a g r i c u l t u r e be geared t o t h e fullest p r o d u c t i o n . To ensure t h i s , t w o essential fact o r s must o p e r a t e :
a a s t a b l e m a r k e t for all a g r i c u l t u r al p r o d u c e ;
b a r e d u c t i o n of overhead costs to t h e farmer.
4. Higher p r o d u c t i o n can be s t i m u l a t ed b y t h e greater use of fertilisers. This will be e n c o u r a g e d if t h e y are available at cheaper r a t e s . In some cases the fertiliser market is controlled by an i n d u s t r i a l group which is indifferent to the difficulties confronting f a r m e r s .
5. If we could get Member Governments i n t e r e s t e d and c o m m i t t e d to g u a r a n t e e i n g t he s u p p l y of fertilisers at lower prices b y subsidisi n g t h e m , if necessary, to r e d u c i n g t r a n s p o rt costs and t o p r o m o t i n g f a r m e r s ' co-operatives, i t would help largely t o w a r d s t h e solution of t h e problem. Even t h o u g h t h i s might at the o u t s e t cost m o n e y t o Member Governments it would in t h e long r u n benefit t h e community. I n c r e a s e d p r o d u c t i o n per h e c t a r e would mean c h e a p e r food. This m i g h t m e a n less s u b s i d i s i ng of food and c o n s e q u e n t l y a l i g h t e r b u r d e n for t h e t a x p a y e r.
6. The e s t a b l i s h m e n t or promotion of a g r i c u l t u r a l c o - o p e r a t i v e s in member countries would safeguard farmers a g a i n s t pressure from i n d u s t r i a l groups. Elimination of t h e middlem a n would reduce t h e price of fertilisers.
7. It should be n o t e d t h a t t h e agricult u r a l c o m m u n i t y r e p r e s e n t s 25 % of t h e t o t al p o p u l a t i o n of all member countries. Agricult u r a l p r o d u c t i o n r e p r e s e n t s 13 % of t h e gross n a t i o n a l p r o d u c t i o n in m e m b e r countries.
8. These facts show t h a t i n d u s t r i a l groups concerned in t h e m a n u f a c t u r e and disseminat i o n of fertilisers s t a n d t o gain much from the p r o p e r o r g a n i s a t i o n and increased purchasing power of t h e a g r i c u l t u r a l groups..
9. Every section of t h e c o m m u n i t y will benefit from an i n c r e a s e in a g r i c u l t u r a l product i o n . It means i n c r e a s e d p u r c h a s i n g power for t h a t c o m m u n i t y . Greater p r o d u c t i o n will m e an lesser b u r d e n s on the t a x p a y e r.
10. Expenditure by Member Governments t o place t e c h n i c a l e x p e r t s at t h e disposal of farmers is necessary to ensure t h a t farmers d e r i v e t h e fullest benefit from t h e use of fertilisers. Many of t h e d e m o n s t r a t i o n s given at p r e s e n t have a commercial basis; while t h ey m a y be beneficial, t h e y are specially designed for t h e purpose of a d v e r t i s i n g some p a r t i c u l ar commercial product.
11. Finally, w i t h t h e e v e r - i n c r e a s i n g costs imposed on the f a r m i n g c o m m u n i t y , and in the a b s e n c e of some s t i m u l u s to increase t h e prod u c t i o n per h e c t a r e , t h e flight from t h e land will c o n t i n u e , to t h e d e t r i m e n t of all Member S t a t e s . This will u l t i m a t e l y t u r n a small s u r p l u s of food into a deficit, with a further overall rise i n t h e cost of foodstuffs.
