Summary
In October 2003 we announced that we would undertake
an inquiry into the implementation of the reforms to the Common
Agricultural Policy agreed in June. Our inquiry focussed on the
basis on which the decoupled single farm payment would be made.
On 12 February 2004 the Government announced its
decision to adopt a 'dynamic hybrid' model of single farm payment.
We do not, in this report, seek to second-guess the Government's
decision. Instead our objective is twofold: to publish the evidence
we received, in order to inform discussion of the matter, and
to raise a number of questions and concerns which flow from the
decision taken.
In particular we are concerned about the economic
and environmental impacts of adopting the model chosen. Further
research about such matters is needed, and the policy may need
to be altered if potential and actual distortions are considered
sufficiently serious. We are also concerned about the capacity
of the Rural Payments Agency to deliver the new Single Payment
Scheme.
Our inquiry has brought to the surface a number of
questions - which we set out in the report - which must be addressed
by Defra as it develops the detail of the implementation of the
reforms to the CAP. This, then, is only the first part of our
inquiry: we will return
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