they may seem an illusion but their value is real enough. "Virtual cows" are heading Europe's farms. Diary farmers are confused -- and many enraged -- by the European Commission's ( ec ) latest device for subsidising them. Some believe that they will lose out.
ec dreamt up the virtual cow concept as part of its controversial plans to reform and simplify the Common Agricultural Policy. It's blueprint, still on the planning boards, includes sharp cuts in guaranteed prices for beef, cereals and milk. Compensations -- direct payments -- to the farmers will vary according to the size of their holdings or herds. But diary payments would be calculated by dividing a farmer's quota by the average European Union yield of milk per cow to get a "virtual cow" number. Each virtual cow would attract a payment of at least us $141. Their owners would thus be paid according to the number of cows they would have if they had an average yield rather than the number of cows they actually own. Farmers in all countries believe the payments do not compensate fully for the losses they will suffer as a result of the price cuts.
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