Peter, No matter what they do this new system will not be fair. There will be winners and Loosers.
For us, Historical average will give us a V. High £ / acre, ( ignoring 2001 as no cattle = no grass keep = low forage area etc.) However, our forage area has been rising by 20 - 30 acres per year for the last 4 years ( again ignoring 2001 ).
If it were an area payment, we would get a smaller amount per acre, but on every acre. If they do go down this route, or regional payment, Would this mean that every acre of land would receive the same entitlement ?? Would beef money would be spread evenly across dairy farms as well ??
I think that the historic payments are the fairest way, but a sensible approach to growing businesses and new entrants have to be considered and implemented.
Daniel.