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The purpose of this enactment is to provide cost of production
protection to family farms in cases where the weighted average input
cost of products typical in or suitable for the farming zone exceeds the
weighted average netback to farm gate of such products, averaged over
three years.
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Costs are to be calculated on the basis of marketable product and thus
will take into account bad weather, pests and other crop loss factors.
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The calculations are to be based on normal crops or livestock
produced for food or breeding and are to be approved by an independent
auditor.
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The enactment does not provide for support on product-by-product
basis and is not therefore a direct product subsidy.
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