All depends on its standing. Either way, exporters say the euro will give EU grain the transparency andmuscle to compete with the United States on the world market, in line with the aims of EU farm policy reform. Nevertheless France plans to speed up its procedure for buying intervention grain so cereals office ONIC cannot buy in March 1999 grain offered in November 1998, paying a lower price. Farmers and cooperatives are impatient to know if the EU, which stands to nip some 1.3 billion Ecus off its huge farm budget by abolishing green rates, will grant them compensation. An EU source told Reuters that a farm council in December may be hard pushed to reach a final verdict.
Analysts say cutting support prices is inevitable with or without the euro.
In 10 years intervention may be history. Things need to change and farmers know it's for the best. Euro to start with trickle not bang Given the two year changeover and that physical grain trades over the counter, quoting in euros will not happen overnight. Analysts say traders may start quoting euros only when their clients do. Your average French farmer will still think in francs.