Agri-environment Schemes (Hansard, 18 May 2000)

§ Mr. Yeo

To ask the Minister of Agriculture, Fisheries and Food (1) what estimates he has made of the effect on Government expenditure of changes in the level of payments under each of the agri-environment schemes to fall this year and the next as a result of his Department's reassessments of income forgone by participating farmers; and what the figures are; [121419]

(2) what estimates he has made of the effect on the grants received by farmers under each of the agri-environment schemes of his Department's re-assessments of income forgone by participating farmers; [121418]

(3) what research his Department has undertaken into the effect of reductions of payments made under agri-environment schemes, with particular reference to the South Downs Environmentally Sensitive Area scheme; and what study he has made of the impact of these reductions on the take-up of such schemes; [121437]

277W

(4) if reductions in specific payments under the South Downs environmentally sensitive area scheme are made at the discretion of his Department. [121420]

§ Mr. Nick Brown

[holding answer 9 May 2000]: Rates of payment to farmers participating in the Environmentally Sensitive Areas and Countryside Stewardship Schemes are governed by EU Council Regulation 1257/1999 and Commission Regulation 1750/1999. These provisions require payment rates to be calculated on the basis of income forgone, additional costs incurred, and an incentive not exceeding 20 per cent. of the income forgone. Following the review of payment rates in 11 ESAs in 1999, it is estimated the overall effect on grants to participating farmers in those ESAs would be a reduction of 1 to 2 per cent. Of the eight rates available in the South Downs ESA two were increased, two were reduced and the remainder were unchanged. It is estimated the overall effect will be a reduction of 5 per cent. compared with payments to farmers in that ESA in 1999.

I announced to the House on 7 December 1999 that Government expenditure on agri-environment schemes would increase to more than double the current level during the seven years of the England Rural Development Plan.