Agricultural subsidies

Development of soft flax fibers encouraged by agricultural subsidies and improved fiber-separation methods. 

Heede, H. R. (198.S). A Preliminary Assessment of Federal Energy Subsidies in FYl984. Washington, DC Tesdmony submitted to the Subcommittee on Energy and Agricultural Taxation, Committee on Finance, United States Senate, June 21. 

Further, the authors have carefully examined and documented the public health and environmental impacts of pesticide use in the USSR. The USSR was the largest country by territory in the world and the use of pesticide here was enormous. As the authors have shown, this happened mostly because the USSR s Communistic rulers decided at the end of the 1960 s — to turn all chemical weaponry plants (constructed in the beginning of the cold war) to pesticide production. With rich government subsidies, pesticides were distributed through all collective farms The Soviet official policy, the chemicalisation of agriculture, was an attempt to overcome its prominent ineffectiveness in crop production. 

And it is easy to observe that an agriculture based on subsidies is not sustainable, as demonstrated by many farmers who revert to conventional farming after the period of subsidy. 

Subsidies and incentives are provided independendy from the environmental impact that ethanol may have during its entire life cycle, therefore, supporting biofuel production in the US. In 2001, the Emopean Commission launched a policy to promote the use of biofuels for transport in order to reduce greenhouse gas emissions and the environmental impact of transport, as well as to increase security of supply, technological iimovation and agricultural diversification (UN, 2006). 

This application is very cost-sensitive because of the subsidy structure of the agricultural sector of the EU. The regulations for waste disposal of mulch film require either recycling or adequate treatment (e.g., incineration). If thin mulch films are concerned, the recovery of the film in the field is crop-dependent and difficult. Cleaning of the soil residues is cost-intensive. In this case, it can be more cost-effective to use biodegradable mulch film, which is adapted to the climate and the fruit application. 

The macro-trend towards sustainable environmental protection and social responsibility, also on a legislative level, offers ChemKitgood prospects for a steady business success. However, in the first years the business model depends strongly on subsidies from the Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Management (BMLFUW). Any unforeseen short-term loss of these subsidies would have an extremely detrimental effect on the revenue situation of ChemKit. 

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