French arable farmers are to see a significant chunk of their single farm payments redirected towards upland and grassland farming, as the government seeks to achieve a fairer balance in the agricultural sector.

The controversial move was announced by French agriculture minister Michel Barnier in Paris this week, as he unveiled how the French government would roll out many of the changes stemming from last year’s CAP “health check”.

In particular, it is planning to redistribute some €1.4bn (£1.2bn) of direct aid – equivalent to about 18% of the total French subsidy cake – starting in 2010.

Mr Barnier has identified four broad areas where the funds will be targeted:

• Consolidating the rural economy and employment (€265m) – with money spent on “fragile” sectors such as upland sheep and goats, mountain dairy farms, plus potatoes and field vegetables
• New support for grassland production (€980m) – with money spent on a new grassland payment, plus a biodiversity payment
• Support for sustainable production (€129m) – with money spent on protein vegetables, organic farming and environmental measures
• Risk management (€140m) – with money spent on a new crop insurance scheme and an animal health fund

The French minister said that the changes, which had followed a period of consultation, were essential to make the CAP sustainable in the long run. “This reorientation of aid will put into place a policy that is more just, more durable, more defensible and more balanced,” said Mr Barnier.

Some of the money will come from the basic rate of modulation applied to all single farm payments. This is currently set at 7% and will rise to 8% in 2010.

But the French government is also making use of the so-called “Article 68 provisions”, which allow it to top-slice payments from some sectors and move the funds to other sectors, for example those that enhance the environment or support upland communities.

As such, an extra €640m (£562) will be taken from arable producers and used to support grass-based animal production. That is out of a total subsidy payment of €5.2bn (£4.6bn) to the French arable sector.

Mr Barnier admitted that the redistribution would be painful for some. But it was a “collective investment” that would ensure the CAP had a long-term future.