An Introduction to Farm Organisation & Management by M. Buckett (Auth.)

By M. Buckett (Auth.)

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After a p e r i o d of weakness, s o m e w h a t e q u i v a l e n t t o a p e r i o d of d e v a l u a t i o n , t h e Environmental Factors and Forecasting 25 p o u n d b e c a m e relatively strong in t h e late 1970s. It w a s also strong in t h e m i d - 1 9 8 0 s . T h i s r e d u c e d t h e c o m p e t i t i v e n e s s of British exports. T h e m a i n c o n c e r n of t h e f a r m e r is t h a t t h e prices of his p r o d u c t s s h o u l d rise by a n a m o u n t w h i c h will at least c o m p e n s a t e for a n y increases in his costs.

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.

14a. A s s u m e t h a t t h e energy r e q u i r e d is r e p r e s e n t e d by t h e p r o d u c t line, a n d t h a t this energy can b e supplied by 100 kg of barley or 93 kg of m a i z e . ) F r o m t i m e to t i m e t h e price of barley relative t o t h a t of m a i z e will change. If t h e price of energy from m a i z e is c h e a p e r p e r u n i t t h a n from barley t h e n it pays t o use maize. 93 kg m a i z e equals t h a t of 1 kg barley a n d a price ratio t a n g e n t c o n s t r u c t e d from this r e l a t i o n s h i p is a p p l i e d t o Fig.

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