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THE BICHEL COMMITTEE

 

 

Table 7.5 The effect of changed price and subsidy assumptions for crop farming on clayey soil

Price assumption

1995/96 prices

Changed prices
 

Present Cropping

++

+

0

Present Cropping

++

+

0

Treatment frequency
Contribution margin II per ha

2.32
3418

1.52
3426

0.43
2,776

0
2,288

1.39
1,967

1.10
1,992

0.38
1,666

0
1,397
Note: The analyses are based on a 30% reduction in the price of cereals compared with 1995/96 and an assumption that the area subsidies for cereals and silage corn are increased by 18%, that the area subsidies for rape, peas, flax grown as oil-seed crop, and set-aside, are reduced by 32, 10, 39 and 6%, respectively, and that the acreage with reform crops must include between 10 and 30% set-aside. It is also assumed that the price of herbicides and fungicides rises by 25%, and the price of insecticides by 50%, as a result of taxes introduced.