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

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Common Agricultural Policy reform

20/02/2004

Implementation of reforms to the Common Agricultural Policy (CAP) will pave the way for a more sustainable and vibrant agricultural industry in Scotland, Deputy Environment and Rural Development Minister Allan Wilson said today.

Speaking to farmers, Mr Wilson made clear that decisions on implementation of CAP Reform - announced to Parliament last week - mark the start of a process.

Further work and continuing close dialogue with the industry and other interest groups will be key to delivering a more market responsive and environmentally sustainable agriculture industry.

Mr Wilson last week announced to Parliament three main decisions for Scotland:-

- full decoupling with the single farm payment based on the subsidy reference period 2000 2002 (the historic basis);

- the use, in principle, of the national envelope provisions for the beef sector only - to address environmental enhancement and quality improvement issues;

- the intention to move the total rate of modulation, EU compulsory and national combined, to at least 10% by end 2007 - subject to review later this year once the provisions on match funding are known.

Addressing the Council meeting of NFU Scotland, Mr Wilson said:-

"Decoupling is the single most important element in the whole package. It will mean that farmers, instead of responding to Scheme rules, requirements and constraints, will now respond to market signals and consumer needs. This is a key underlying objective of the Agriculture Strategy and is the way to ensure a sustainable long term future for agriculture.

Individual farmers will be free to do what they deem appropriate in their own business circumstances, subject to meeting environmental and good farming practice standards - the cross-compliance proposals announced yesterday.. The public is entitled to expect that the custodians of much of Scotland's environment are sensitive to their responsibilities in caring for the land.

"Basing the single farm payment on farmers historic entitlement does not provide a long term rationale for agricultural support payments. We plan to review this decision as soon as EU arrangements permit.

"Final decisions on the shape of the national envelope scheme for beef will be taken in the light of further discussions with the industry and other interests, after the EU implementing legislation has been agreed.

"Modulation, transferring support for production subsidies to supporting wider rural development objectives, provides a more sustainable rationale for agricultural support. It is through well designed rural development measures that we can target resources to buy the outputs which society wants.

"The decisions we take together will be key to delivering an effective support regime. We need to ensure that we prioritise measures appropriately - to maximise the outputs we obtain and to develop delivery systems, using the Land Management Contract model, which ensure wide accessibility.

"I firmly believe that these decisions will greatly advance our strategic objectives as set out in both the Forward Strategy and the Executive's Partnership Agreement. I believe they will lead to a more sustainable and vibrant Scottish agriculture."

Page updated: Saturday, July 17, 2004