The UK government has today dismissed the European Commission’s proposals for post-2013 reform of the Common Agricultural Policy as "a missed opportunity". Details of the proposals, which will be formally released today, were revealed in several documents leaked from the Commission over the past months.

The Westminster government wanted to see a significant reduction in the amount of direct support paid to farmers, believing that current high food prices represent the perfect time to create a more competitive, market centred food system; the government has criticised the EC for "setting the clock back several decades".

The environment secretary, Caroline Spelman, said, "We're in a situation where there are global problems with food security, economic uncertainty and the loss of biodiversity. Reforming the CAP is the best opportunity in a generation to take a major step forward in dealing with all of these problems. But we're worried that the commission's proposals will be far too backward-looking and this precious opportunity will be lost."

Farming groups disagree with government over subsidy paymentsimage expired

However, many farmers will be gladdened by proposals for subsidies to remain more or less intact. Although grain and livestock prices are at near record highs, some, dairy farmers and some fruit and vegetable growers, continue to feel the squeeze; across the board input prices have risen, to the point that free-range egg, pig and poultry farmers claim to be losing money on every animal.

Farm groups, including the NFU, dispute the government’s belief in the sanctity of the market; farmers point out that as long as retailers wield a disproportionate share of power in the supply chain, the threat of climate change looms over producers throughout the globe and markets are subject to distortion, support is still necessary to guarantee enough food is produced and standards are maintained.

NFU president Peter Kendall today declared, "We do not apologise for the CAP and the support it offers. It is providing a very necessary degree of stability in alarmingly turbulent times." Kendall said that, as payments are decoupled from production, farmers can still respond to the market, and that CAP support allows EU farmers to maintain the highest levels of environmental protection and mitigates market volatility, which has recently shaken the wheat market, and the kind of inequitable supply chain distortion under which dairy farmers continue to struggle.  

Farmers, politicians, environmentalists see red over greening measures

The proposals to ‘green’ the CAP have proven most contentious, with farmers claiming such measures linked to direct support payments (under the proposals 30 per cent of pillar one support will be dependent on fulfilment of environmental conditions) will inhibit their ability to grow more food. However, the government and environmentalists have said the ‘greening’ measures, which have been emphasised by the commission to justify spending such a large chunk of public money on the CAP (over 40 per cent of the EU budget), do not go far enough.

NGOs and environmental groups have slammed aspects of the plans, which they agree are ‘Greenwash’, but which they argue also play into the hands of factory farms and agribusinesses. Friends of the Earth said the proposals amounted to continued support for factory farming and subsidised food exports, which would have a detrimental impact on the environment and on food security.

Last month the RSPB denounced the Commission’s proposals, stating a reduction in pillar 2 support for agri-environmental schemes, which have benefitted farmland birds and other wildlife, could have disastrous effects for the farmed environment. The RSPB said this effect would not be mitigated by "fig-leaf" greening policies outlined in the leaked proposals.

Under the Commission’s plans, 30 per cent of current direct payments to farmers will be conditional on taking steps to protect the environment including leaving seven-10 per cent of land ‘set-aside’, ensuring arable farms grow at least three different crops and ensuring permanent pasture is maintained. A statement from the EC said the intention is to, "enhance the sustainable management of natural resources across the whole of the EU, addressing environmental problems concerning water, soil, biodiversity and climate change."

Proposals outline 9 per cent reduction in CAP budget

The proposals outline a reduction in the EU budget share for CAP from over 40 per cent to around 37.5 per cent of the total, meaning it would remain the most expensive policy area. Proposals for an upper limit of 300,000 Euros (£260,000) a year have been widely welcomed. Levies would be applied progressively on all payments over 150,000€ under the new plans. Measures will also be taken to see that payments only go to ‘active’ farmers; in the past airports and golf courses have received payments, causing scandal.

Commissioner Dacian Ciolos, who drew up the plans, hopes the capping of payments will divert more subsidy payments to traditional, sustainable operations and family farms, which have seen renewed public support across Europe in the past decade, and a fairer distribution of funds. However, critics have said subsidy caps would only affect a fraction of landowners, who could respond by dividing their businesses on paper to continue qualifying for more payment.

Ciolos, commissioner for agriculture and rural development, has been the subject of criticism as his proposals have been said to suit his own country, Romania, better than many of the EU’s major producers. In Romania the average farm size is three hectares, compared with around 80 in the UK and more in France and Germany. He is said to have come under pressure from French diplomats opposed to reform over his proposals.

Following their release today, the Commission’s proposals will be subject to debate. Over the next two years policy makers will develop plans for a new CAP to come into effect from 2014 and last, with periodic adjustments, until 2020.