Memorandum submitted by the Local Government
Association
THE IMPLEMENTATION OF CAP REFORM
A. Following what principles and by
what method the UK should implement the proposals contained in
the regulations formally adopted at the Council meeting in September
2003;
INTRODUCTION
1. The LGA represents over 400 local authorities
in England and Wales.
2. The reform of the CAP is likely to lead
to a restructuring of the agricultural sector in England, if not
apparent in the short term, this will be the case in the medium
to long term. Restructuring will arise as farmers adapt to operating
in a fully market-driven agricultural sector, at one extreme,
seeking to diversify away from farming, at the other, changing
stocking levels or cropping patterns.
3. The input of local authorities is essential
to the implementation of the CAP reform proposals and for the
promotion of rural development. The LGA believes that the reform
of the Common Agricultural Policy, and the subsequent restructuring
of farming, will impact not just on farmers and on the environment,
but also upon the wider rural community and on auxiliary rural
businesses. Farming businesses provide employment and investment
opportunities not just on-farm but in supply chain businesses
and support services. Local suppliers and local processors and
their employees will all also be affected by the restructuring
of the agricultural sector.
4. In terms of implementation of the reform
package, the immediate issue to be addressed is that of the basis
of calculating single farm payments. The LGA supports the payment
of the single farm payment on the basis of historical receipts.
5. There is an argument that says that farmers
in receipt of the historical single farm payment could be at a
competitive advantage over farmers who produce crops that have
traditionally not received support. However, we believe that the
use of the negative list for the fruit and vegetable sector will
go some way to allay these concerns.
6. An issue of concern to the LGA is the
possible introduction of a national envelope. The LGA supports
the introduction of a national envelope and believes that it could
be used to promote specific types of farming, provide assistance
for young farmers or new entrants, or be a source of hardship
funds.
7. The LGA believes that it is imperative
that the Government should take care to ensure that the administration
of the national envelope does not become hidebound in extra bureaucracy.
RURAL DEVELOPMENT
REGULATION
8. Rural development strategies must add-value
to existing structures and mechanisms as opposed to the creation
of a new tier of support streams. Existing structures are already
in place that could streamline the delivery of these funds.
9. Rural development measures should be
broader than the current concentration on agri-environment measures.
Defra should use rural development funds to "provide aid
for the management of integrated rural development strategies
by local partnerships under Article 33 (including: basic services
for the rural economy, renovation and development of villages,
tourist and craft activities."
B. What impact implementation will have
on the agricultural sector, particularly when taking account of
approaches to CAP Reform in other European Union Member States;
10. Local authorities in areas close to
the devolved authorities are concerned about the impact on competitiveness
if the devolved administrations opt for different implementation
methods from those in England.
11. For example, a decision to have a different
method of distribution of the single farm payments could have
an impact on cross-border competitiveness and lead to market distortion.
This issue of cross-border competitiveness is important not just
in terms of within the United Kingdom but also between the EU
member states.
C. What progress has been made in implementing
the proposals made by the Policy Commission on the Future of Farming
and Food and how does that work mesh with wider reform of the
CAP;
12. Some areas have made good progress in
implementing the proposals of the Policy Commission. For example,
in Lincolnshire, the impending changes to CAP and consultation
process resulting in proposals made by the Policy Commission were
among the drivers that resulted in the Lincolnshire Charter for
Agriculture and Horticulture, a partnership between the NFU and
all local authorities in Lincolnshire.
13. Over the last 18 months the Charter
has formed the Forum for Agriculture and Horticulture and produced
an agreed Implementation Plan. One of the Forum's major concerns
however is the lack of an obvious funding strategy for many of
the proposed projects at the Regional level and local level, to
enable the proposals to become a reality.
14. As changes in CAP progress with proposed
cuts going to modulation, the national envelope and national reserve,
it will become increasingly important for farmers to be able to
access Pillar 2 funds. National, regional and local strategies
need to be backed up by funding that will help farming and rural
communities adapt to the significant changes they face.
15. In some areas, regional implementation
plans remain in draft format and there is a real need to seize
the initiative and make an impact at the ground level.
Local Government Association
January 2004
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