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Rural Report for Thursday, June 18

18/06/2009 10:48:02

There is a prediction food demand will keep the farm sector strong in the next decade and limit the impact from the global economic downturn.

A report from the OECD and the UN's Food Agency says agriculture is expected to be relatively better off than other sectors in the economy.

It says the recent period of relatively high incomes and a relatively income-inelastic demand for food will be crucial. The report says after a pullback from peaks from 2007 to 2008, farm prices are expected to be dampened further in the next two to three years by the global downturn - but stay at or above 1997 to 2006 averages.

However, the report's authors stress their price projections are subject to caution. They cite uncertainty over the depth of the economic crisis and the volatility of crude oil, which increasingly weighs on farm prices due to biofuel output.

Federated Farmers says there is no conclusive cause of cancers among farm workers in a Massey University study.

The study looked at the occupational causes for leukaemia, bladder cancer and non-Hodgkin lymphoma and shows farm workers, particularly females, are at highest risk. The study suggests chemicals may be the cause.

Federated Farmers president Don Nicolson says to the layman, the study opens up a whole lot of questions.

"And I just hope that the Massey University study has people giving it due diligence so that we can get the right answers so that the layman doesn't live in fear.

"We need to make sure that we are a very responsible sector and we have safe practices."

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