EU sets aside set-aside

3.00.00pm BST (GMT +0100) Wed 26th Sep 2007

The European Union's set-aside scheme, whereby 10% of farmers' land has been subsidised to be left unused to avoid surplus production, has been suspended for 2008.

Today's vote by MEPs endorses the European Commission's statement yesterday and means that farmers across the country will be able to bring land back into use and give a much needed boost to grain production.

The East of England's Euro MP Andrew Duff, backs the decision, and feels the time is right to scrap the set-aside scheme, so long as more money is put into environmental stewardship schemes.

Speaking today from Strasbourg, Mr Duff said: "Today's decision is a victory for common sense and a step in the right direction. Freak weather across the country this summer and the growth of the bio-fuels industry, has reduced yields. Set-aside has served its purpose and we should scrap it altogether.

"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. Currently, high grain prices are threatening to push up meat and bread prices for consumers. Bringing set-aside land back into production should help to offset these increases and cut bureaucracy."

Speaking about the unexpected benefits of set-aside which may be lost if set-aside is suspended, Mr Duff added: "I can understand concern that there have been environmental gains from set-aside areas, but there are much better ways to encourage sustainable and commercially viable farming. Gordon Brown needs to get his cheque book out and boost green practice through a better funded Higher Level Environmental Stewardship Scheme."

Mr Duff added "At a time when farm incomes are under more pressure than they have ever been, the maintenance of set-aside is nonsense. Suspension of the scheme is a step in the right direction."

ENDS

NOTES TO EDITORS:

The European Commission's announcement yesterday, and today's vote by MEP's, means that EU farmers will not be required to put up to ten per cent of their arable land into set-aside, which could bring up to 3.8 million hectares of the EU's land back into production. 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.