Farming: Leaked document reveals proposals for changes to system of subsidies

A LEAKED document on the future of the Common Agricultural Policy has suggested that future subsidies might lie in de-coupled basic area payments with top-ups some of which might be linked to environmental objectives.

Another proposal would see a top limit or cap being placed on the amount of subsidies any individual could receive. But NFU Scotland has urged caution on those reading too much into the 13-page document which made an unexpected arrival some five weeks ahead of its official launch by EU Agricultural Commissioner, Dacian Ciolos.

Union chief executive James Withers said everyone should remember that the leaked document was in draft form and it was currently being passed from pillar to post within all departments in Brussels.

While everyone was trying to decipher exactly what has been put down in these 13 pages, he said the really big issues on the size of the CAP budget and how much of that sits between Eastern and Western Europe continued to "hang in the air".

"The finished document that appears in a few weeks time may be much changed from what has fallen into the hands of some of the press just now."

He added that it was also important to point out that whatever eventually emerges from the Commission will only be a start point as 27 individual member states and the Parliament will have the ultimate input into the final shape of any CAP reform package. This debate will continue right up to 2013.

Commenting on how he saw the leaked document details, Withers described the proposal to split delivery into a de-coupled basic area payment with top-ups and an environmental component as "very interesting and in some ways appealing", but he added it also raised a significant number of questions.

Another part of the document suggests moving the Less Favoured Area programme into the same pot as the Single Farm Payment but is silent on whether the budget would move with it. The paper does comment on the need for payments to be linked to activity; a theme already highlighted by both the EU Parliament report prepared by George Lyon and the Brian Pack proposals for the Scottish Government. However, the Union were opposed to any proposal that would top limit support to any individual as it would penalise the larger scale farmers in Scotland.

The Union did not respond to another proposal within the leaked paper which suggested the complete abolition of market and income support. It is believed this is put forward to appease the free marketers but will fall at an early stage.