New Forms of Cost Reduction

New forms of cost reduction provide farmers with a means to escape from the 'price squeeze'. Farmers involved in cost-reduction strategies cut back on monetary expenses through reductions in the use of external inputs (e.g. fertilisers or concentrates), hired labour and external credit. These purchased inputs are substituted through the more efficient use of 'on-farm' resources, such as manure, silage and family labour. As such these strategies often yield ecological benefits, using local resources more intensively and often leading to more diverse cropping regimes.

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