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Discusses the results of a survey of farmers in four key cereal producing countries in the European Community. The economic results for the 1991 harvest showed how Danish producers consistently had the lowest variable costs, without necessarily sacrificing yield performance. In contrast, UK producers, whilst generally keeping variable costs below the four‐country average, sacrificed yield performance and found themselves, on occasion, amongst the lowest gross margin achievers. The results of the survey also suggest that on aggregate, arable farming will become more extensive, as farmers pay even greater attention to the quantity of variable inputs used, the intensity of applications and the use of their own labour as well as that of outside contractors.

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