CAP HEALTH CHECK MUST SEE SET-ASIDE SCRAPPED FOR GOOD

12.00.00am GMT Tue 20th Nov 2007

The European Union's compulsory set-aside scheme, whereby 10% of farmers' land has been subsidised to be left unused to avoid surplus production, should be scrapped for good as part of the 'health check' of the Common Agricultural Policy, according to a local Euro MP.

Speaking ahead of today's announcement of a CAP health check, Liz Lynne said:

"I hope that the Commission will recognise that the time for set-aside is gone. It has served its purpose and should be scrapped. Increasingly extreme weather across Europe and elsewhere, as well as alternative land use such as growing crops for bio-fuels, has reduced yields and this needs to be addressed.

"Many people think there is something absurd about the notion of paying farmers not to produce on 10% of their land while continuing to farm the remaining 90% as intensively as before. High grain prices are pushing up meat and bread prices for consumers. Bringing set-aside land back into production should help to offset these increases and also help to cut bureaucracy."

Speaking about the unexpected benefits of set-aside which may be lost if set-aside is suspended, Liz added:

"I can understand concern that there have been environmental gains from set-aside areas, strips alongside hedges for example, but there are much better ways to encourage farms to be more green and sustainable, as well as commercially viable.

"We should instead boost green practice through the Environmental Stewardship Scheme. Many farmers say they would like to be greener but the Environmental Stewardship Scheme is under-funded. The newer, second tier of the scheme, Higher Level Stewardship, for more far-reaching environmental projects and practice, is so overstretched that it is hardly worth their while to put in a claim because the budget has been cut. The government and the European Commission could address this.

"I hope all lobby groups who want to see sustainable, green and viable family farms join together to urge Gordon Brown to beef up the Higher Level Environmental Stewardship Scheme. The government should also in turn urge the Commission get rid of the anachronism of set-aside for good."

ENDS

NOTES TO EDITORS:

Set-aside was introduced in 1992, to pay farmers to take a certain percentage of their land out of production each year, to avoid surpluses.

In a surprise move, EU farm ministers agreed at their July Council meeting to fix compulsory set-aside at 0% for the 2008 growing season. The Commission and Parliament have now confirmed the zero rate. However, this is a one-off derogation and does not abolish set-aside permanently.

The decision was driven by low intervention stocks and the uncertainty of this season's harvest due to bad weather. The Commission estimates that the move should increase EU cereal production by between 10m and 17m tonnes for the 2008 harvest.

The Environmental Stewardship Scheme was launched two years ago, and aims to encourage farmers to work in a more environmentally sustainable way and help meet the costs of doing so. But the scheme has been a victim of its own success with the limited budget being stretched by a huge number of claims from farmers keen to be more green. The total budget for this year was set in March at £3.3 billion.

The scheme has two tiers Entry Level and Higher Level. The top tier Higher Level Scheme of Environmental Stewardship, rewards farmers for managing the most important landscapes and wildlife habitats.