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Abstract

When it comes down to reality the political objective of securing reasonable income to farmers succeeds all other objectives in agricultural policy making. To be able to evaluate policy and design new policy it is of vital importance to know the overall income situation and how the agricultural sector work. This paper conclude that Danish farmers from 1973 to 2000 have had a reasonable relative income. The reason for this is not support but instead the possibility of dynamic structural adjustment on one hand and on the other hand a sound general economic policy which have made it possible for agriculture to be a integrated part of the overall economy. The traditional agricultural policy pursued by OECD countries based on direct and indirect price support have only in the very short run supported income. In fact the conclusion is clear traditional policy creates further mis-allocation of resources and thereby slowing the needed structural adjustment process that could help securing income.

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