19 January 2011

In a statement to the National Assembly for Wales on Monday, the Minister welcomed a clear indication from the Commission that direct payments will remain central to the CAP from 2014.

The Minister is firm in her view that there must not be any fundamental change in the underpinning purpose of the CAP to provide income support for farmers, to sustain food production, and to continue to support sustainable land management.

The Minister said:

"Under the CAP, the Single Payment Scheme provides some £280 million annually in direct payments to Welsh farmers. The Welsh farming sector would be non-viable without these payments, despite increasing incomes in the industry. I am pleased, therefore, that the EC is proposing to keep direct payments from 2014.

"Detailed proposals are not yet available, making it difficult to give a full response at the moment. However, I am not persuaded by initial proposals for a "greening" payment under Pillar 1 and believe that all but the basic environmental requirements should be delivered via Pillar 2, and Axis 2 of the Rural Development Plan.

"I would like further detail regarding definitions, but I do support the proposal in principle of supporting only "active farmers".

"To help farmers in Wales adjust to the major change with the SPS moving to an area basis from the current historic regime, I will argue for a transitional period of at least five years.

"I will use the months ahead to play a full role in helping to shape the UK negotiating position, and as part of that process will withstand any attempts to bring direct payments to an end."