Modulation is an opportunity – not a threat
Modulation is an opportunity – not a threat
A policy commission report on the future of food and farming
shows the industry has a profitable future – so long as it
accepts sweeping changes. Isabel Davies examines how
the commission believes new life can be breathed into
the industry through policy reform and market solutions
MODULATION should be seen as a commercial opportunity rather than a threat, says the chairman of the policy commission.
Sir Donald Curry said his commissions proposal to increase modulation to 10% by 2004 and 20% by 2006/2007 if there is no CAP reform, was linked to other key recommendations in the report.
Sir Donald said the commission proposed that the suite of agri-environmental schemes was replaced by a new single " broad and shallow" scheme, open to as many farmers as possible.
It had also agreed that unlike existing schemes the formula for calculating payments with the new scheme should include a profit element.
"Modulation is such a contentious issue because the majority of farmers see it as a net loss to their business," he said. "But the broad and shallow scheme we see as being taken up widely without huge costs and farmers can still gain income from it."
The report said the scheme should have a basic entry level and farmers who kept to these standards could be paid a flat rate payment per hectare. Applications could be made on the normal IACS return to minimise bureaucracy.
Acknowledging farmer criticism of the modulation proposal, the Royal Institution of Chartered Surveyors urged producers to give the concept a chance.
RICS president Peter Faulker said: "Modulation represents the only practical way of reducing CAP expenditure, an important part of overall CAP reform."
But farm leaders said they remained convinced that funding these types of schemes by increasing modulation was unacceptable.
Ben Gill, NFU president, said: "I must stress that we are not opposed to rural development and environmental spending – quite the reverse. But we have always been against this way of paying for it and the report has not changed our minds."
The report goes on to recommend that once the "broad and shallow" scheme is in place all other environmental schemes should be incorporated into it as higher tiers. It added that one of these tiers should provide ongoing stewardship payments for organic farmers.
The Soil Association said, if implemented, the recommendation could lead to the biggest break through for the organic movement in 50 years.
Ongoing stewardship payments would bring the UK in line with the rest of Europe, it said. "Such support will help make our farmers more competitive against imports, which account for three-quarters of the organic food bought in the UK." *
Eyeing up the future… Commission chairman, Sir Donald Curry.
Other key recommendations
• Introduce whole farm audits.
• Fix floor for agri-environmental scheme payments.
• Supermarkets should examine length of supply routes.
• Develop national strategy for improving nutrition.
• Government group to look at food procurement rules.
• Extend National Fruit scheme to older schoolchildren.