When EU agriculture ministers signed off last year's CAP health check, I described the package in Farmers Weekly as "the good, the bad and the ugly".
The "good" included the fact that EU modulation was being raised closer to UK rates, creating a more level playing field. Eliminating set-aside and simplifying the CAP were also praised.
The "bad" included some of the sweeteners offered by the EU Commission to win the support of individual member states, such as offering additional milk quota to Italy and giving the UK the "green light" for environmental set-aside.
The "ugly" referred to the Article 68 provision, which allows national governments to take up to 10% of some farmers' single farm payments and target the funds at other groups of farmers or regions, especially where there is an environmental gain.
This was condemned for three reasons. First, it would enable certain governments to continue offering "coupled" or "production linked" supports at a time when the majority of the EU was moving in the opposite direction.
Second, it would lead to distortions of competition between similar producers in different member states. And third, it would amount to "robbing Peter to pay Paul", creating immediate winners and losers....
It seems that our concerns are coming true, with France in particular looking to make full use of the Article 68 provisions.
Much of the French scheme revolves around redistributing SFP money from arable producers to those farming in fragile areas, such as upland sheep and goat farmers and mountain dairy farmers. That seems fair enough, if that's what the French want to do with their money.
Of far greater concern, however, is the French plan to make special payments to the country's pea and bean producers. It seems that this will amount to anything between €100/ha and €150/ha - on top of the €56/ha they already get for growing protein crops.
The extra aid, worth about £30/t, will be coupled to production - the more you grow, the more you get.
The French government has justified the move on the grounds that protein crops enhance the environment. It has described its use of Article 68 more generally as a "collective investment" to ensure the long-term future of the CAP.
British arable farmers will no doubt take a different view. The new subsidy amounts to a massive distortion of competition, based on sprurious envoronmental grounds, designed to lever French producers into key export markets, while artificially boosting the area of protein crops grown. It's an ugly development.
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