A to Z Index:

Common Agricultural Policy

The EU Agriculture Council reached agreement in June 2003 for reform of the Common Agricultural Policy (CAP). The radical reforms will result in a fundamental change to farm policy, with a shift of emphasis from production to a market-orientated base. The new reforms will structure the industry for the next ten years against a backdrop of EU enlargement.

The reforms aim to improve competitiveness and sustainability of agriculture throughout Europe, promote food quality and environmental standards, simplify the support mechanisms for farmers and strengthen rural development policy.

LMC Menu Scheme Consultation

Aberdeenshire Council has recently responded to the fourth CAP Reform consultation undertaken by the Scottish Executive. The Land Management Contract Menu Scheme (LMC Menu Scheme) could be introduced in 2005, along with or around the same time as the Single Farm Payment Scheme (SFPS). The SFPS will replace the current support measures for arable and livestock sectors.

The proposed LMC Menu Scheme has been drafted, based on previous work on Land Management Contracts (LMCs). The LMC concept reflects strategic objectives within the Scottish Executive's "A Forward Strategy for Scottish Agriculture" to work towards an industry that is customer focused, plays a part in rural development and is a leading player in protection and enhancement of the environment.

Aberdeenshire Council's Rural Affairs Working Group debated the LMC Menu Scheme proposals in August 2004, prior the September deadline for responses. The Working Group fully supports the LMC Menu Scheme as a mechanism to enable all types of farms to undertake additional environmental management and consider other aspects such as animal health and welfare and socio-economic measures.

The LMC Menu Scheme aims to be "widely accessible" to all land managers. The Working Group recommended that promotion of the Scheme is essential in advance of its introduction and that the application process is straightforward, to enable all farmers to access the Scheme during the initial period when the CAP reforms are being implemented.

Ongoing Consultations

Aberdeenshire Council has recently responded to the second and third CAP Reform consultations being undertaken by the Scottish Executive.

The Rural Affairs Working Group and Infrastructure Services Committee debated the second phase of CAP reform, which relates to the Cross Compliance measures that farmers will require to adhere to, once the CAP reforms are implemented in 2005.

Rural Affairs Working Group regarded the Cross Compliance measures as an integral part of farm management in the future, while at the same time acknowledged that good agricultural practice is commonplace throughout the wide range of farm types in Aberdeenshire.

Commenting on the measures, which aim to protect soil structure, grazing management, landscape features and enhance environmental management on farms, Councillor Bill Howatson said,

"Our farming industry in Aberdeenshire is a vital component within our rural economy and the CAP reforms will enable the industry to adapt and deliver not only premium quality products, but also wider environmental benefits.

"The proposals to maintain land in good agricultural and environmental condition are welcomed. The Land Management Contracts model being developed by the Scottish Executive should help to deliver these aims."

In early June, the Rural Affairs Working Group considered the third CAP Reform consultation, relating to the National Reserve and Entitlement Trading, prior to submission of the Council's response to the Scottish Executive.

Aberdeenshire Council broadly supports the principle of establishing a National Reserve for entitlements to the Single Farm Payment; initially to assist those farm businesses that have been exposed to some structural change during the reference period prior the reforms, but also in future, in consideration of new entrants into the industry.

Opportunities for Scotland Consultation

Our response to the Scottish Executive consultation, which ended on the 6th January 2004, can be downloaded in full below. There follows a summary of our conclusions and recommendations.

Conclusions and Recommendations

Change within the farming industry is necessary, as clearly demonstrated by the analysis of the viability and sustainability of farm businesses detailed in the SAC report. The CAP reforms present a valuable opportunity for all farms to adjust to market forces and define their own management systems through the decoupling proposal. Aberdeenshire Council supports the decoupling proposal.

The eventual outcome of the CAP reform is difficult to quantify, as there are a wide range of outcomes, but opportunity exists through the reforms for businesses to expand, contract, diversify and re-structure. Every effort must be made to make land and associated infrastructure available to young and expanding farmers through the reforms – those who are the drivers of the industry in the years ahead.

While it is recognised that rural development funds require to be increased to deliver the strategy for Scottish agriculture within the rural economy, this will be difficult to achieve solely through modulation without UK Treasury funding. Aberdeenshire Council supports the principle of modulation, with match funding from the UK Treasury to increase rural development funding.

Through reform we must work towards a vibrant and sustainable farming industry, which encompasses production, environmental and rural development aims. The upstream and downstream impacts throughout the wider rural economy cannot be ignored.