HC Deb 23 October 2003 vol 411 cc642-4W
22. Mr. Kidney

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact of reform of the Common Agricultural Policy on the support available for growing energy crops. [133805]

Alun Michael

The reform of the Common Agricultural Policy was positive in its support for energy crops. It will still be possible to grow energy crops on set-aside land and to receive payments under the new Single Payment Scheme. If energy crops are grown on non set-aside land payments under the new Single Payment Scheme and the new €45 per hectare energy crops payment will be available. The energy crops payment is limited to 1.5 million hectares for the EU as a whole and aid will be reduced if production exceeds that area.

Mr. Wills

To ask the Secretary of State for Environment, Food and Rural Affairs what progress has been made with the reform of the common agricultural policy sugar regime. [133799]

Mr. Morley

The European Commission issued an options paper on reform of the Sugar Regime in late September 2003. A Defra consultation exercise has just been launched to help inform the UK response, covering agricultural, development and trade issues.

Miss McIntosh

To ask the Secretary of State for Environment, Food and Rural Affairs when she next plans to meet the National Chairman of the Tenant Farmers Association to discuss the CAP Reform package of 26 June. [132264]

Mr. Bradshaw

My right hon. Friend the Secretary of State, has no plans at present to meet the National Chairman of the Tenant Farmers' Association. However, my noble Friend, the Lord Whitty, is currently considering a request from the Chief Executive of the Tenant Farmers' Association to meet him. The Chief Executive attended a meeting with Defra officials and representatives of other key stakeholders on 8 October which unfortunately my noble Friend was unable to chair due to last minute diary pressures. The Chief Executive has also been invited to a meeting with officials on 17 October.

Miss McIntosh

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the impact of the CAP Reform package of 26 June on the nation's tenant farmers. [132265]

Mr. Bradshaw

No specific assessment has been undertaken of the impact of the CAP reform proposals on tenant farmers. However, we have assessed the impacts of the proposals on farming and other businesses generally, including an analysis by farm activity, and a summary of these is included in the Regulatory Impact Assessments which have been lodged in the House Libraries. An additional analysis looking at the impact on distribution of payments of various options for operating the Single Payment Scheme has also been carried out and a copy has been placed in the Library of the House.

For the first time, the bulk of farm subsidy will not be dependent on what or how much farmers produce. As with the previous system, subsidy would be paid to the farmer, whether owner or tenant, will continue to hold the subsidy entitlement. Tenant farmers, along with other farmers, will therefore be free to produce what they judge the market wants and so be better able to cut costs and increase profits. Farmers will also be freed from some of the bureaucracy associated with the subsidy schemes which are being replaced by the new decoupled subsidy.

Miss McIntosh

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the possible impact on tenant farmers of the option available to EU member states to implement the CAP Reform package of 26 June by using regional average payments. [132266]

Mr. Bradshaw

No such assessment has been done in relation to tenant farmers specifically. However, we have prepared an analysis of the impacts of regional average payments on farming and other businesses generally and a copy has been placed in the Library of the House.

Miss McIntosh

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the extent of redistribution of payments between farmers if the CAP Reform package of 26 June is implemented using regional average payments as opposed to the historic payment basis. [132267]

Mr. Bradshaw

We are currently consulting stakeholders on whether the historic or area model of the new Single Payments Scheme should be operated in England. Responses to that exercise will help develop our understanding of the range of environmental, social and economic impacts of each of the models including the impact on the agriculture industry and its constituent parts. An assessment has been made of the redistributive effects of a number of CAP direct aid payments. A copy has been placed in the Library of the House.

Miss McIntosh

To ask the Secretary of State for Environment, Food and Rural Affairs if it is her policy to ensure that as farm tenants progress to better agricultural holdings they will be free to move their single payment entitlements established under the CAP Reform package of 26 June to those holdings without penalty. [132268]

Mr. Bradshaw

Entitlements under the Single Payment Scheme will be allocated to farmers rather than holdings. It follows that a tenant would be free to use the eligible land on any new holding to claim payment against the entitlements he or she owns. There is also provision to lease entitlements, but only with an equivalent number of hectares. Leased entitlements would, therefore, revert back to their owner at the same time that the accompanying land does.

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