§ Andrew GeorgeTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the likely impact of the EC proposal to recommend that set aside rates be reduced. [143611]
1030W
§ Mr. BradshawThe European Commission has proposed that the rate of compulsory arable set-aside be reduced from 10 per cent. to 5 per cent. for the 2004–05 EU marketing year. The proposal has been made in order to try to restore a more normal balance of supply in response to serious reductions in this year's cereals harvest as a result of prolonged hot weather and drought in Central and Southern Europe in the summer.
The Commission estimates that the measure will increase the supply of cereals by around 7 million tonnes. It is not clear what the impact will be in the UK. There is normally around 400,000 hectares of land in compulsory set-aside each year, with a further and more variable area being set aside voluntarily. In theory, up to 200,000 hectares of additional land could be cropped in 2004 increasing UK cereal production by 1.4 million tonnes based on average yields. In practice, however, the additional output is likely to be significantly lower than this as the proposal has been made after many farmers have finalised their cropping plans for next season.
Reducing the rate of compulsory set-aside may also have some impact on the environmental benefits which can be derived from uncultivated land, though it is difficult to assess this without knowing what land may be put back into cropping.