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Old 08-12-2005, 06:17 PM   #2 (permalink)
jackspeese
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For a number of years, a decline in farm incomes has been observed. At the origin of this decline in income, which, in certain cases has led to a stop in production, one finds that the decline in prices of agricultural products is linked to the rise in the costs of products necessary for agricultural production. This phenomenon is likely to become worse with the implementation of the most recent CAP reform. It is obvious that the modulation of aid and the constraints associated with eco-conditionality will decrease the scope of the aid. To mitigate this decline in income, certain farmers have chosen "diversification"; i.e.: to engage in activities that prolong the act of production or that support production (loi d’orientation agricole [agricultural orientation law] n°99-574 of July 9, 1999). In most cases, diversification showed that it was able to offer possibilities of resources that made it possible to maintain viable agricultural production. Along the same lines, according to a study conducted by DATAR (Délegation á l’aménagement du territoire et á l’action régionale [Delegation of regional planning and regional action]), it is believed that agricultural diversification would be one means to address this income decline and, more particularly, an alternative for making production more independent in respect to CAP aid. OCEA, the primary player in the economic development of production in the Somme, must therefore be able to support its members in this new way. Given that diversification activities are presently neither well developed nor well understood by OCEA, the following problems arise: What is the reality of diversification as far as the members are concerned, what is the economic impact of these activities, what are the needs of the farmers at the time of diversification and afterwards, how to integrate diversification with OCEA involvement?
A bibliographical study made it possible to better understand this phenomenon at the national and European level. Afterwards, an investigation and talks with OCEA collaborators, its members and other professionals involved in diversification projects made it possible to assess diversification in the Somme, to measure its macro and microeconomic impact and to highlight each other’s needs and expectations in respect to support and diversification. The identification of needs and expectations therefore made it possible to make suggestions concerning the means to be put in place and the actions to be implemented so that OCEA can play an active role in supporting the farmers of the Somme who either want to or who already have set up diversification activities.
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