AGRICULTURE
71. The significance of agricultural policy and practices
for biodiversity is difficult to overstate. Agriculture influences
more than 75% of the UK's land area.[163]
Up until 1900, UK agriculture was essentially mixed farming but
since then the drift into monoculture has had a devastating effect
in reducing biodiversity. Modern agricultural practices have been
responsible for the decline of many species and the disappearance
of large areas of habitat. We heard of species such as the grey
partridge being "brought to their knees" by intensive
farming. One witness reported the comments of a senior conservationist,
who stated that the single most useful thing Western Governments
could do to aid biodiversity would be to abandon subsidised agriculture.[164]
Although the direction and emphasis of agricultural policy is
now starting to shift to address environmental matters, it is
hard to escape the conclusion that current efforts are too little,
too late and too slow. Species and habitats are still in decline.[165]
Agricultural policy or practice has been identified as a constraint
in approximately 55% of Species and Habitat Action Plans.[166]
72. It is, however, important to recognise that farmers
are not to blame for these problems: it is agricultural policy
which is guilty. As the National Farmers Union noted, "the
drivers of agricultural policy remain at odds with a fuller expression
of biodiversity conservation."[167]
The criticisms we make are of agricultural policy and market conditions,
not farmers. Farmers are simply attempting to make a living within
the constraints of policy and during extremely hard times. Agriculture
is responsible for shaping the countryside of the UK that so many
want to conserve and farming and agriculture have the potential
to be extremely positive for biodiversity: sensitively managed
agricultural land provides a range of habitats for a huge number
of species. It is the challenge for agricultural policy to harness
the work of farmers and landowners for the good of biodiversity.
73. Witnesses called for root and branch reform of
agricultural policy.[168]
We believe that wholesale reform of the Common Agricultural
Policy is required if biodiversity is to have a bright and secure
future. We urge the Government to continue to work towards this.
Various changes are required to modify the face of agriculture
and, whilst reform of the Common Agricultural Policy must remain
the ultimate goal, there are many things which could be done now
to help mitigate (and ultimately reverse) the effects of previous
agricultural policies.
Increased Modulation
74. 'Modulation' is the name applied to the process
of reducing agricultural subsidies for production so as to increase
the funding to agri-environment schemes and rural development
initiatives. Any 'modulation' of EU subsidies must be accompanied
by an equal amount of matched funding from the national Government.
Under the Agenda 2000 reforms of the Common Agricultural Policy,
Member States are allowed to modulate up to 20% of the support
paid to farmers. On 7 December 1999, the Government announced
that it would modulate 2.5% of Common Agricultural Policy spending
in 2001 and progressively increase the amount of spend to be modulated
to reach approximately 4.5% by 2005. In practical terms, this
modulation will be applied at a flat rate which means that all
direct subsidies to farmers will be reduced by 2.5% in 2001 and
this reduction will rise as modulation increases.
75. We discussed the development of 'modulation'
in our recent report on the Rural White Paper.[169]
Here, it is simply worth stating that the vast majority of witnesses
pressed the case for further reducing production subsidies and
increasing expenditure on agri-environment schemes.[170]
Within this context we were somewhat disappointed with the stance
of the National Farmers Union, which urged caution in the pace
of modulation.[171]
Given the precipitate decline of much farmland wildlife, the pace
of change cannot be quick enough. In our report on the Rural White
Paper in May 2000, we concluded that the degree of modulation
should be increased and the pace accelerated. The evidence we
received in this inquiry re-affirmed our conclusions. We reiterate
our previous recommendation that the Government should increase
the level of modulation to 10% as soon as possible with a clearly
stated intention and timetable of reaching the highest permitted
percentage of 20%. The level of spend on agri-environment schemes
should continue to take the lion's share of the diverted funds.
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