Farming: EU chief rejects end of direct income support

Speaking at the Oxford Farming Conference on the day after Spelman angered delegates by suggesting income support should be scrapped, Ciolos insisted direct payments had to be retained in the reforms of the Common Agricultural Policy (CAP) which are due to be introduced from 2013 onwards.

He aligned himself closely with the conclusions of the Pack Inquiry which was set up by the Scottish Government to recommend future agricultural policy in Scotland.

"The importance of public support for Scottish farmers, underlined in the Pack report, is shared in most of Europe," said Ciolas. "Direct payments can deliver more in terms of public goods than they do today. But their income supporting function is a must."

There was, however, a need to redefine the CAP to ensure support went to active farmers and to give greater recognition for the provision of public goods not remunerated by the market.

It was also important that payments were based on objective criteria applicable to all member states rather than what farmers had been paid in the past.

"A historical reference period for the distribution of single farm payment (SFP) has lost its relevance," he said. "We cannot run the CAP in two different gears. The policy must be fairer and more efficient. To maintain its legitimacy, it needs to be focused on active farmers. We should avoid making payments to people whose activity has no relationship to farming or land management."

But UK farmers will be alarmed by the European Commission's proposal to cap individual farm payments. This is a hardy annual which successive British governments have successfully fought off in the past on the grounds that it would mitigate against the larger farm structure in the UK.

Ciolos said unlimited payments to large farmers and landowners were difficult to justify unless related to the creation of a large number of jobs.

""We are currently paying large landowners who may not be in need of the same level of income support as small or medium sized farmers," he maintained. "The proposal to establish upper limits for direct payments to individual farmers will address this."

While food production would remain the number one objective for farmers, he warned that food security could not be achieved at the expense of damage to the environment or putting at risk the capacity of future generations to meet their needs.