Comments on: Agflation Watch http://chicagoboyz.net/archives/5746.html Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago boys including those pictured above. Fri, 25 May 2012 05:38:28 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Tim Worstall http://chicagoboyz.net/archives/5746.html/comment-page-1#comment-222786 Tim Worstall Mon, 05 May 2008 10:09:26 +0000 http://chicagoboyz.net/?p=5746#comment-222786 Very minor requirements to manage it in an "environmentally sound " manner. You can also sell your subsidy stream should you so wish, but as the buyer of such you have to also have so called "naked land " (ie, land which doesn't receive subsidy) which you can allocate it to. Scotland has a great deal of naked land. England almost none (subsidies are not transferable between the two countries). The cost of renting naked acres against which to put your purchased subsidy stream is some £5 an acre in Scotland, £50 an acre in England. Buying a subsidy stream in Scotland costs, as a capital sum, some 3 times the annual subsidy. The same stream in England costs some 1.2 times the annual subsidy. Very Ricardian, no? Very minor requirements to manage it in an “environmentally sound ” manner. You can also sell your subsidy stream should you so wish, but as the buyer of such you have to also have so called “naked land ” (ie, land which doesn’t receive subsidy) which you can allocate it to.

Scotland has a great deal of naked land. England almost none (subsidies are not transferable between the two countries). The cost of renting naked acres against which to put your purchased subsidy stream is some £5 an acre in Scotland, £50 an acre in England.

Buying a subsidy stream in Scotland costs, as a capital sum, some 3 times the annual subsidy. The same stream in England costs some 1.2 times the annual subsidy.

Very Ricardian, no?

]]> By: david foster http://chicagoboyz.net/archives/5746.html/comment-page-1#comment-221583 david foster Sat, 03 May 2008 13:58:14 +0000 http://chicagoboyz.net/?p=5746#comment-221583 Do you have to do anything with the land, or just own it? Do you have to do anything with the land, or just own it?

]]> By: Tim Worstall http://chicagoboyz.net/archives/5746.html/comment-page-1#comment-221463 Tim Worstall Sat, 03 May 2008 10:15:16 +0000 http://chicagoboyz.net/?p=5746#comment-221463 Well, yes, the commodities boom is of course having an effect on the price of Ag Land. However, within hte EU there's another matter. The subsidy regime is changing from one based on historical production levels to one purely upon acreage. You own registered Ag Land, you get a check. Depends on the quality of land, of course, but for good arable in England, say €150-€200 a acre per year. As anyone who has read their Ricardo will know, this acts simply as an increase in the rent from said land and will inevitably push up land prices. Well, yes, the commodities boom is of course having an effect on the price of Ag Land.

However, within hte EU there’s another matter. The subsidy regime is changing from one based on historical production levels to one purely upon acreage. You own registered Ag Land, you get a check. Depends on the quality of land, of course, but for good arable in England, say €150-€200 a acre per year.

As anyone who has read their Ricardo will know, this acts simply as an increase in the rent from said land and will inevitably push up land prices.

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