The past week has seen a series of revelations in the media about the way that decoupled farm subsidies are operating in Scotland. It has become evident that farm subsidy entitlements are being sold by farmers and that investors – who may never have set foot on a farm – are buying up entitlements to claim the new Single Farm Payment, which accounts for the bulk of the European Union’s £48.5 billion Common Agricultural Policy.… Read the rest
Phase out subsidies by 2020 says Miliband
Britain’s Defra secretary told the Oxford Farming Conference is committed to a system by 2020 where ‘public funds are only used for public goods, in particular environmental benefits.’ This would mean the effective end of Pillar 1 and of restraints on trade. ‘I see an inevitable process of trade liberalisation, with huge pressure on subsidies and restraints on trade.’ Contrary to the views of the farm commissioner, the 2008 CAP health check should be used to pursue a ‘further fundamental reform’.… Read the rest
Green box does distort trade, claims Indian study
A report commissioned by the Indian Department of Commerce and carried out by UNCTAD’s Indian team challenges the EU’s argument that decoupled aid payments have only a minimal trade distorting effect. According to the researchers’ model, EU farm exports would fall by a massive 45 per cent if Green Box subsidies were removed and production would fall by close to 6 per cent.… Read the rest