Government unveils new hill subsidies
2 August 2000
Government unveils new hill subsidies
by FWi staff
THE government has unveiled new proposals to support hill farmers based on the area they farm rather than the number of animals they keep.
From next year, payments in England will be 13/ha in moorland areas; 18.60/ha in disadvantaged areas; and 34.40/ha in severely disadvantaged areas.
Rates for farmers in Scotland and Wales are yet to be confirmed.
Agriculture minister Nick Brown said the new support method aimed to meet the social and environmental needs of upland England.
Mr Brown said 30m would be available over the next three financial years to fund a safety-net mechanism and increase payment rates to all farmers.
This is in addition to the 27m annual budget for support targeted at hill farming and additional funds announced for payments in early 2001, he claimed.
The changes would help reduce the risk of over-production and environmental problems of over-grazing by cutting the incentive to keep extra livestock.
Mr Brown said the proposed changes have already been sent to the European Commission for inclusion in the England Rural Development Plan.
Under that plan, announced late last yea, 1.6bn over seven years will be available for rural development and agri-environmental schemes.
Mr Brown said: The Government recognises that farming families underpin rural society, and extensive grazing underpins treasured upland landscape.
He added: We have secured additional funds in recognition of the continuing difficulties faced by hill farmers.
Mr Brown said he believed it was right that the extra money should taper off as additional funds for other rural development measures become available.
Hill farmers who receive livestock payments of about 650m a year are the main beneficiaries of increasing support for the livestock sector generally, he said.
For England, the basic budget remains at 27.2m a year. However, additional funding of 12.75m paid in 2001 will be reduced to 7.65m by 2004.
Farmers who stand to lose under the new arrangements will have losses restored by 90% in 2001; 80% in 2002 and 50% in 2003, said Mr Brown.
During that time, additional environmental and rural development funds will become available from the England Rural Development Plan, he pledged.
Farmers will also be able to qualify for 10% and 20% enhancements to their payments if they satisfy one or more of several criteria, said Mr Brown.
The government has drawn up these criteria are designed to maintain or enhance the environmental benefits of extensive animal production in the hills.
There will be a maximum upper limit on the area that can be claimed and different rates paid according to the type of land being farmed, said Mr Brown.