Scotland is far more in tune with current thinking on farm subsidies in mainland Europe than England and Wales, claims Scotland’s rural affairs minister Richard Lochhead. Addressing farmers at a Christmas Carcass competition in Inverurie, Mr Lochhead brought them glad tidings about the deep divide in agriculture policies on the two sides of the border. ‘My opinion on CAP reform is very different from DEFRA’s view that all direct subsidies should be removed and we should rely on a free market. Scotland should not go down that route and our thinking is much closer to the mainstream of Europe which is that the pendulum is swinging back towards support for active agriculture.’ [...]

In one of its most critical ever reports, the National Audit Office has slammed the way in which the Rural Payments Agency has administered Single Farm Payments to farmers. It accused the agency of showing ’scant regard to protecting public money’. The agency has wasted around £700m, the capital equivalent of building thirty secondary schools. [...]

This afternoon I did a pre-recorded interview with BBC Radio 4’s Farming Today programme. The subject was the House of Lords report on the 2010 EU budget, which says too much money is being spent on agriculture. The first question I was asked by the presenter shows how deeply the new (old) productivism has taken root over the past year. I was asked something along the lines of “Given the fears about food security, don’t we need a well-funded agriculture sector?”. [...]

Last night, BBC2 screened the first of six hour-long episodes in a new documentary series, The Future of Food.

[...]

Russia and Romania may be two of the cheapest places in the world to produce wheat, but the UK is only a little way behind. Releasing the result of its Global Cost of Production Challenge, Bidwells Agriculture head of research Carl Atkin, said that despite the higher unit price of inputs in the UK, cost of production per tonne is only marginally higher than in eastern Europe. ‘This is because of the considerable yield advantage the UK has, based on first-class soils and a maritime climate.’ [...]

Pillar 1 subsidies are likely to continue after 2020, forecast Professor Allan Buckwell, the Policy Director of the Country Land and Business Association, in an interesting talk at the President’s Seminar of the Royal Agricultural Society of England (RASE) in London yesterday. [...]

The four main farm unions of the United Kingdom today unveiled a joint manifesto aimed at the June elections to the European Parliament. The slim, 8 page document sets out a UK farmers’ agenda on a range of issues of concern. While the manifesto makes the case for lighter touch regulation of farming (e.g. on pesticides, nitrates, greenhouse gas emissions, soil degradation and health issues like BSE) it calls for more powerful regulation of the food chain to defend farmers incomes. When it comes to the future of the CAP it seems that the major concern is to prevent the ‘re-nationalisation’ of the policy. [...]

I realise that opposition politicians have to say all things to all persons and jump on any bandgwagon that’s going on, but I must say that I found an interview with Nick Herbert, the shadow Defra secretary, in Farmers Weekly a bit disappointing. It remains to be seen whether the MP for Arundel and South Downs will be Defra secretary in David Cameron’s Conservative government, or even whether Defra will remain in his present form. However, if his thinking is typical of that in the shadow cabinet on agriculture and food matters, it’s a bit worrying. It looks as if we could be lurching back towards productionism. [...]

One of the many drawbacks of the CAP is that it costs a lot of money to run which reduces the sums that reach the supposed beneficiaries. It has now emerged in response to a parliamentary question that each claim for the Single Farm Payment (SFP), irrespective of its value costs £742 to process. Junior Defra minister Jane Kennedy said that the figure was obtained by considering the direct processing costs and the total number of claims received. [...]

I have a lot of sympathy with tenant farmers. It is sometimes said that farmers are asset rich but income poor, by which it is meant that they own a lot of extremely valuable land but don’t make a whole lot of profit from working it. In the case of tenant farmers, who have to rent their land, they are too often asset poor and income poor.

The UK Tenant Farmers Association recently held its annual jamboree and, fresh back from his half term holiday in Egypt, National Chairman Greg Bliss gave a speech. He used the occasion to share some observations about agriculture policy that I thought might be of interest to readers of this blog. For those who are not familiar with a dialect known as ‘farm union leaderese’ (which is rare, though it can be found all over Europe and North America) I have provided translations of the key passages. [...]

Today’s meeting of the Agriculture Council witnessed the frequently irrestistable force of French attachment to the Common Agricultural Policy run into the occasionally immovable object of UK, Swedish and new member state desire for change. The result was that a much-trumpeted French vision paper for the future of the CAP beyond 2013 was roundly rejected. In the end France used it’s presidential prerogative to adopt the paper as ‘Presidency conclusions’ but as such it has no political weight whatsoever. Some will remember that UK vision paper for the CAP lauched in the final weeks of its own EU presidency at the end of 2005 met a similar fate. [...]

When UK Chancellor Alistair Darling wrote to his finance minister colleagues on ECOFIN last month he made the case for reducing agricultural trade barriers and EU farm subsidies as a way of addressing what has become known as the ‘global food crisis’. Quite rightly much of the world’s attention has been focussed on the impact of rising food prices on the world’s poor. But a more motivating factor for the UK could be the fact that higher food prices presents the UK economy with the very serious problem of imported inflation. [...]

A row over the banning of GM feed by British supermarkets raises wider issues about how far new technology can be used to solve problems of world food shortage. There have been calls for a second ‘green revolution’, but the first green revolution was based on intensive use of fertilisers and irrigation. Fertilisers are rocketing in price while irrigation is a less environmentally friendly option in a time of climate change. [...]

While many are disappointed by the lack of ambition in the Commission’s health check proposals, there’s no doubt that Commissioner Fischer Boel has been on form when it comes to the pithy soundbites. [...]

The cost of agricultural holdings across the EU has risen to record levels. However, this is not entirely good news for farmers. It makes it even harder for those who do not inherit to enter the industry, while only farmers wanting to retire can cash in. Tenant farmers face higher prices making life more difficult for them. [...]

The UK Chancellor of the Exchequer (aka Finance Minister) Alistair Darling wrote earlier this week to all his counterparts on the Economic and Financial Affairs Council (ECOFIN) ahead of today’s meeting, setting out the case for a radical reform of the EU’s agriculture and trade policies. Specifically, he calls for the abolition of direct aids (some €34 billion a year) and the abolition of EU tariffs on agricultural imports. He also signals the growing concern in the UK about the EU’s headlong rush into food-for-fuel policies that are widely seen as contributing to the rapidly rising costs of food in Europe and elsewhere. [...]

Fears of unrest are increasing in developing countries as shortages develop of staple foods or prices increase substantially. Governments have cut import tariffs to cope with the problem, but hoarding to take advantage of future price rises has exacerbated the difficulties being encountered. [...]

As the debate goes on in the EU about whether milk quotas can be increased by 2 per cent as part of the soft landing when they are eventually abolished in 2015, it is an opportunity to reflect how milk quotas have affected the UK dairy industry. They were introduced in 1984 to ease the severe budgetary crisis brought about by the structural surplus of milk in Europe. They worked in terms of limiting production growth and coping with the budgetary crisis, but they brought a lot of unintended (or intended) problems in their wake. [...]

What a difference a change of ministerial portfolio makes! Back in 2006, Hilary Benn MP, Secretary of State for International Development, was strident in his criticisms of the CAP:

“Through the Common Agricultural Policy (CAP), two fifths of the EU budget goes on subsidies and support to Europe’s farmers who represent 5% of Europe’s population, and produce less than 2% of Europe’s output. Most is not spent in the poorer parts of Europe where it is needed. Most goes to the biggest farming companies and landowners, not small farmers.”

Times change, Prime Ministers come and go, and Hilary Benn is now Secretary of State at the Department of Environment, Food and Rural Affairs. In this post he is spearheading the UK Government’s fight to ensure that massive CAP ‘income support’ payments continue to be paid to Europe’s biggest farming companies and landowners. [...]

Earlier this week, BBC Radio 4 broadcast Churchill Confidential, a dramatisation of British cabinet meetings chaired by Prime Minister Winston Churchill, records of which have only recently been released into the public domain. In this week’s episode, looking at Churchill’s second term of office (1951-55), we get an overview of the pressing issues of state at that time: the impending conflict with Egypt over the Suez Canal, the development of the British atom bomb, balancing Britain’s relationships with its European neighbours and the United States of America, immigration and race relations, the coronation of Queen Elizabeth II, the devaluation of the pound and, somewhat incongruously… a decision on whether to reduce the meat ration. Why is this relevant to the CAP? Find out after the jump… [...]

A new survey of public opinion released today by the German Marshall Fund of the United States shows strong support for ‘consumer agenda’ in EU and US agriculture policies focused on food safety, the environment and the food supply. There was significantly less support for producer-oriented priorities like providing emergency financial relief to farmers, insuring farmers against unpredictable market conditions and preserving small family farms. [...]

Initial media reaction to the Commission’s Health Check proposals has been predictable, with most papers picking up as the lead story the Commission’s proposal to apply a tapering reduction to direct payments to larger farms. The Financial Times story was headlined “Communists and royalty fight farm subsidy cuts.” Much was made of the fact that the Commission’s illustrative proposals would reduce the payments received by the Queen of England, who apparently received £465,000 (€650,000) in 2005, by over £140,000 (€192,000). British and German officials were quoted as saying they would oppose these reductions as they were unworkable and undesirable. [...]

The new issue of Food Ethics magazine is devoted to a discussion of CAP reform and the 2008 CAP Health Check. Alongside articles by CAP Health Check blogger Wyn Grant and me, you’ll find some useful analysis by many of the movers and shakers in the CAP debate, both in Brussels, the UK and elsewhere. Read article-by-article here, or download the entire magazine as a handy PDF file: Food Ethics – CAP Reform issue. The Food Ethics Council is a UK-registered charity that challenges government, business and society to make wise choices that lead to better food and farming.

A number of producer interests would like to revive food security as a major driver of agricultural policy. Organisations like the Commercial Farmers Group (CFG) in the UK, a small grouping of leading producers, argue that new threats are present in the form of population growth, pandemic diseases, climate change, terrorist actions and increased demand for renewable fuels. They want to change the balance between the environmental and food safety concerns that have been driving agricultural policy in recent years and return to more traditional productionist priorities. [...]