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02/03/2004
Fischler breaks the mould to challenge EU farm policies
Western Mail

At the recent NFU Conference, EU Agriculture Commissioner Franz Fischler and Environment secretary Margaret Beckett were keynote speakers. Mrs Beckett took the opportunity to spell out her plans for the single farm payment scheme, and Mr Fischler gave his audience an overview of future agricultural policy issues. There was no visible tension on display.

Indeed, it is unusual for the EU Agricultural Commissioner to openly challenge the farm policies of European member states, but this week I can reveal that Franz Fischler has just done that.

Following the recent EU agreement to radically change the structure of agricultural support, the UK and other EU countries have been allowed the flexibility to adapt the single farm payment structure to regional circumstances.

Many people welcomed this flexibility. Politicians and farm unions have pressed hard for this to reflect the different farm structures and circumstances in the United Kingdom.

There has, of course, been an almost universal welcome for the National Assembly's decision that future agricultural subsidies in Wales will be based on historic payment levels.

This decision should deliver the twin objectives of greater certainty and less bureaucracy for Welsh producers – key parts of any successful reform.

Not so in England, where Mrs Beckett has rejected the farming unions' arguments for historic payments and has been on the receiving end of a sharp rebuke from Europe.

Mr Fischler this week gave Mrs Beckett a rocketing in a letter warning against proceeding with the "hybrid" application of farm support reform by over-zealous averaging of subsidies between all types of farms. Mr Fischler argues that this policy will radically change farm production decisions and ultimately artificially inflate land prices.

"This was not intended in the adopted reform. Indeed, the idea was to give farmers the possibility to change their production in the light of market signals but certainly not to force them to do so because of a fundamental modification in their level of support," Mr Fischler bluntly states.

Mrs Beckett's scheme sees all historically-based subsidies phased out over the next eight years and converted into average payments. This week she revealed that her preference had been to eliminate historically – based payments within five years.

The aim of the Labour Government is clearly to take control of all current EU agricultural support over this period and to redirect it into the Government's wider rural policy agenda, irrespective of the impact on family farming.

Mr Fischler makes it clear that he does not want to see the incomes of dairy farmers, beef producers and arable farmers plunge, which he fears will be likely consequence of Mrs Beckett's plans.

The Commissioner warns her in his letter that Labour's plans must be seen to be aimed at achieving the objective of his reforms, which is to switch subsidies from production towards supplementing farm incomes. It is a shame that Mr Fischler's letter only came to light after Mrs Beckett had addressed the NFU.

So farmers in England are left having to rely on the European Commission to exert any sort of influence over Defra.

Thankfully we have been spared this in Wales where our Welsh farm unions and politicians have done an excellent job in maintaining support for the Welsh family farm.

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