Seeking allies within Europe, the coalition government has held talks with Sweden and Denmark focusing on how to ensure a radical reform of the Common Agricultural Policy (CAP) goes ahead, in advance of the European Commission's publication of proposals for change. 

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The UK government says it wants farm production subsidies to be reduced in the new CAP, with the eventual goal being a competitive farming industry that is not reliant on any direct subsidies. However, Defra has acknowledged that such a goal will require a long-term process of transition, in which farmers are supported while reducing reliance on subsidies "by investing in farm competitiveness."

Jim Paice said, "Sweden and Denmark share our vision of a CAP which is forward looking and faces the dual challenge of producing more food in a global market while caring for the environment. We need a CAP which gives clear benefits to the taxpayer and helps the industry across the EU to become more competitive rather than propping up outdated structures."

Defra explained its vision for the future of CAP, "The CAP should reward farmers for the valuable benefits they provide – for wildlife, people and the landscape – that are not rewarded by the market."

The Commission is expected to publish proposals in October on the future of the CAP between 2014 and 2020, although leaked documents detailing some proposals, which have stirred up controversy in the farming industry, have already emerged, possibly to act as 'temperature checks' and gauge reactions ahead of formal announcements in the Autumn.