By M. Buckett (Auth.)
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Extra resources for An Introduction to Farm Organisation & Management
3. Monetary Compensatory Amounts (MCAs) W h e n agricultural p r o d u c t s are sold from o n e E E C c o u n t r y t o a n o t h e r they are t r a d e d in real a n d n o t green m o n e y . A s s u m e for e x a m p l e t h a t G e r m a n y sells b u t t e r t o 26 An Introduction to Farm Organisation and Management Britain. T h e price received is influenced by t h e s u p p o r t price for b u t t e r in Britain w h i c h reflects t h e value of t h e green p o u n d . T h e G e r m a n s , however, receive real p o u n d s a n d t h e v a l u e in D e u t s c h m a r k s ( D M ) is o b t a i n e d from t h e exchange rate b e t w e e n t h e real a n d n o t t h e green " c u r r e n c i e s " .
F o r e x a m p l e , c o m p e t i t i o n for light, a n d possibly c a r b o n d i o x i d e a n d water, play t h e i r part. I Transition I point Grass Beet Cereals Potatoes Fertiliser nitrogen FIG. 12. Response of crops to fertiliser nitrogen (after Cooke). T a k e n literally, C o o k e ' s suggestion is t h a t only m i n i m a l change takes place in these o t h e r factors until t h e t r a n s i t i o n p o i n t . H i s suggestion requires e x p l a n a t i o n . W h e n plotting results from a n e x p e r i m e n t o n a g r a p h t h e p o i n t s t e n d t o h a v e s o m e scatter.
In t h e past t h e U n i t e d K i n g d o m h a s all t o o frequently seen t h e d e v a l u a t i o n of t h e p o u n d . T h i s m e a n s t h a t overnight t h e p o u n d is w o r t h less o n t h e world m o n e y m a r k e t s . It a u t o m a t i c a l l y takes m o r e p o u n d s t o b u y t h e s a m e a m o u n t of i m p o r t e d feedingstuffs a n d such i t e m s as i m p o r t e d oil cost m o r e . Rises of this k i n d can p r o d u c e a c h a i n reaction. In t h e case of oil a n y process directly or indirectly using oil m a y b e affected, a n d in t u r n t h e cost of farm m a c h i n e r y , fertilisers, a n d e v e n t h e m e n ' s wages c a n b e influenced.