§ Mr. Cashasked the Minister of Agriculture, Fisheries and Food what measures will be taken to sustain the rural economy.
§ Mr. Jopling[pursuant to his reply, 22 January 1987. c. 721]: With the European Community now producing surpluses in many of the main agricultural commodities, a new balance of policies has to be struck, with less support for expanding production, more attention to the demands of the market, more encouragement for alternative uses of land, more response to the claims of the environment, and more diversity on farms and in the rural economy.
The Government are therefore taking a number of new policy initiatives to assist the process of change. A scheme will be introduced to encourage the development of farm woodlands to take land out of agricultural production. This will build on the existing forestry grant schemes, but will also provide for annual payments to cover the gap between planting and the likely first income from most types of timber. The payments will vary by area in recognition of the fact that the agricultural income foregone from planting trees on farms will be higher in some areas than in others, but the maximum rate of aid will be £125 a year per hectare. The aim is to plant up to 36,000 hectares over the first three years of the scheme, at the end of which the scheme will be reviewed. The detailed arrangements will be the subject of consultation with interested parties prior to the introduction of appropriate legislation, but the scheme will incorporate provisions for the protection and enhancement of the environment, including special encouragement for broadleaved trees.
The Government also propose an expansion of the forestry programme, with particular emphasis on the private sector and with due regard to environmental considerations. The planting of a higher proportion of trees on low ground of better quality than hitherto will be 39W encouraged by the release to forestry of better quality land; the Forestry Commission will keep in mind the need to encourage planting on this land in their regular reviews of grant rates. We shall continue to encourage broadleaved planting by higher rates of grant, as now. The aim is new planting of 33,000 hectares a year, compared with a current planting target of 30,000 hectares.
The designation of environmentally sensitive areas under section 18 of the Agriculture Act 1986, the first of which are due to come into force next month, will be extended early in 1988. In doing this the Government will build on the lists proposed by the Countryside Commissions, the Nature Conservancy Council and their equivalent in Northern Ireland. There will be consultations on the detailed arrangements.
Diversification of enterprise on farms will be encouraged by the introduction of a scheme under section 22 of the Agriculture Act 1986, providing for the grant-aiding of ancillary businesses on or adjacent to farms. This will include activities such as value-added food processing and the provision of recreational and amenity facilities. There will also be extra help for marketing of the products of diversified businesses. In working up these schemes it will be necessary to ensure that they are complementary to the activities of the existing agencies working in this field, particularly the Development Commission, COSIRA, the small firms service, local enterprise agencies and tourist boards.
Within my budget for research, development and advice I shall be placing more emphasis on the possibilities for novel crops and livestock which have a prospect of being realistic alternatives to commodities in surplus, and on the socio-economic and environmental implications of the changing farming scene.
Finally, my right hon. Friends the Secretaries of State for the Environment and for Wales are today putting out for consultation a draft circular containing guidance on the future planning regime for agricultural land. It will include more encouragement to local authorities to take a positive attitude to diversification and to be helpful about the conversion of redundant farm buildings.
Payments authorised under the sheep compensation scheme 1986 up to 30 January 1987 Leg 11 £ Leg 22 £ Leg 33 £ Total £ Cumbria 13,424 50,950 170,772 235,146 North Wales 23,976 782,699 1,652,192 2,458,867 Scotland 68,624 287,491 991,067 1,347,182 TOTAL 106,024 1,121,140 2,814,031 4,041,195 1 Leg 1: compensation to producers for losses on finished lambs rejected for variable premium on grounds of overfatness after their areas have been released from restrictions. 2 Leg 2 (which is still open): compensation for market losses on sheep sold, marked and subject to slaughter restrictions, at store and fatstock markets. 3 Leg 3: compensation for certain direct costs/losses which resulted from the impact of the restrictions on the affected sheep enterprises.