Subsidy debate cast wide open

Newly-appointed Farming Minister George Eustice launched a formal consultation process this week, but opinions remain divided between environmental groups and farming organisations as to how the subsidy money should be spent.

Environment Secretary Owen Paterson has previously indicated that he is minded to transfer a 15 per cent slice of the funding provided by the EU for direct payments to English farmers, to payments linked directly to environmental improvements.

Some sections of the farming community maintain that direct payments are the most effective way of targeting financial support but wildlife groups are keen for a greater commitment to rural development schemes.

Mr Eustice said: “It’s vital that the new system is designed with the input of the people whose lives it will affect. That’s why it’s so important that people give us their views on how we can best achieve this.

“Defra is inviting input into the design of a straightforward system that is effective, easy to follow and avoids the significant fines charged to UK taxpayers under the current CAP.”

A decision on whether to transfer a portion of the budget for direct payments to environmental payments is subject to evidence from the consultation that additional funding in these areas would prove value for money, he said.

Henry Robinson, the Country Land and Business Association’s deputy president, said: “Farmers in England will be severely disadvantaged if modulation is at 15 per cent – the full amount possible – which is not in alignment with our European neighbours, who may even benefit by switching funds from rural development to direct payments.”

But Martin Harper, conservation director at the RSPB, said: “Three-quarters of England is farmed, and that means farmers have a huge responsibility to look after a great proportion of our wildlife.

“We think money spent on farming needs to work much harder for our wildlife.”

Defra’s consultation runs until November 28 and can be found online at consult.defra.gov.uk/communications/cap-consultation