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This item was published during the term of a previous administration that ended in April 2007

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Future of farming following CAP reform

22/07/2003

Details of a consultation on the future of agricultural support in Scotland following the most radical reform of the EU Common Agricultural Policy in a decade, were announced today.

The Executive intends to consult widely to ensure that future support for farming underpins the objectives set out in its document A Forward Strategy for Scottish Agriculture

Outlining the consultation process, Deputy Environment and Rural Development Minister Allan Wilson said:

"Radical reform of the CAP provides us with real opportunities to meet our priorities for Scottish agriculture. We want to see an industry focused on meeting the needs of customers; that plays a major role in sustainable rural development and helps to maintain the prosperity of our rural communities.

"Agriculture must be a leading player in the protection and enhancement of our environment. We look to Scottish farming to embrace the change and new opportunities that are now available.

"A key issue will be to establish a consultation process that is effective, given the range of detailed issues to be considered, and which is inclusive, involving everyone with an interest. We want to see a wide ranging consultation which will provide a forum for the industry, environmental bodies, rural interest groups, and consumer representatives to make a real contribution on the future of Scottish farming.

"A stakeholder working group will be convened next month to agree the process and scope of the consultation which will be launched formally in October.

"We are working now to analyse the implications of the various options for decoupling support from production, the use of the flexibility provided within a national envelope, and the provisions for national modulation.

"A one-day stakeholder conference is planned for the Autumn and a series of regional focus groups will be held to ensure that a wide cross-section of interest groupings have an opportunity to express their views.

"We have made clear the Executive's commitment to work with all interested parties in order to ensure that we deliver the best outcomes for Scotland. Decisions will only be taken once this comprehensive process has been completed."

Agreement on CAP Reform was reached at the Agriculture Council in Luxembourg on June 26, 2003.

The main elements of the agreement are:

  • Main CAP subsidies to be decoupled from production and replaced by a single farm payment based on average subsidy receipts in the years 2000 to 2002
  • Payments to be conditional upon compliance with statutory conditions covering environment, food safety, animal and plant health, and animal welfare. Land must be kept in good agricultural and environmental condition
  • The agreement provides a number of options to address concerns of moving to a decoupled system, including the possibility of retaining all or part of some existing schemes in the arable, beef and sheep sectors as well as establishing a National Envelope
  • Modulation of direct payments and transfer of the money to Rural Development expenditure will start in 2005
  • A new financial discipline mechanism has been agreed to reduce direct payments to fund policy changes and restrain overall expenditure with agreed limits
  • By 2007 Member States must set up a farm advisory service that will be available to help them meet their cross compliance obligations

Page updated: Wednesday, July 21, 2004