Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Memorandum submitted by Campaign to Protect Rural England (CPRE) (CAP 28)

INTRODUCTION

  1.  CPRE broadly welcomes the paper "A vision for the Common Agricultural Policy" (the CAP Vision paper). It has concentrated minds as never before, on the scale, complexity and importance of the issues of farming, production from land and the benefits and costs of comprehensive, deliberate land management. In this respect, the debate has been taken beyond the valuable work achieved by the Curry Commission. We also warmly welcome the explicit acknowledgement in the paper of the public benefit to be derived from securing attractive landscapes. But the CAP Vision paper is also highly ambiguous over the long-term future of support for land management and the securing of public goods. In the same way, the future of landscape and wildlife policy and the success of Natural England are also cast into doubt.

  2.  CPRE is concerned with the landscapes and habitats of rural England, the overarching question of farming and other production from open land, and the public benefits derived from these. We place great importance on the pattern of land use, landscape and habitat which retains long-established landscape characteristics and features and which gives regional or local identity. The 159 Landscape Character Areas of England are largely determined in this way. The huge influence of human activity on land over millennia also means that most wildlife depends on habitats which have also been farmed and managed landscapes.

  3.  Further reform of the CAP should be regarded as an opportunity to re-affirm the part of farming and land management in the quality of all our lives and to take stock of the huge value of continuity of good farming practice. It is also the right time to make a determined effort to move away from environmentally damaging farming processes and look for possible new ways to harness benign land management for the public good.

  4.  The CAP Vision paper requires all those with an interest in farming and its associated effects to address some critical questions which are at the heart of the future of land management in England:

    —    Should the United Kingdom pursue policies which are directly intended to retain a farming industry, and particularly a livestock sector, even if the short term economic case cannot be made for direct support as the CAP Vision document suggests?

    —    How resilient are the various farming sectors to the challenge of liberalised markets and an end to Pillar 1 financial support? What is the critical mass of farm businesses, skilled farmers and the range of technical support (such as large animal veterinary practices and crop advisory services) required in order to retain a widespread distribution of both arable and livestock businesses across the country?

    —    Is it possible to separate an objective to manage the majority of land across the country as recognisable, accessible landscape and viable habitat from the case for retaining the capacity, knowledge and skills to farm in the long term?

    —    What is the full range of environmental services offered by farming and the value of these services? What is the extent of environmental damage caused by farming? What is the cost of securing the former and preventing the latter? Which is likely to be the most cost effective way to achieve these objectives?

    —    What is the Government's real long term intention in driving forward further CAP reform: to replace an unacceptable and inefficient support system with one which is well-designed, sustainable and delivering public goods on a very broad scale? Or to make substantial permanent cuts in expenditure with reliance only on regulation to achieve some limited environmental standards?

    —    What will be the likely effects of the dismantling of trade barriers and the ending of direct farm support on the farmers and rural communities of developing countries? Is there any real intention to guarantee that the environmental and social costs to English agriculture, environment and society lead to genuine improvements in the condition of the agriculture, environment and society of developing countries?

    —    Do we value the existence of a responsible, comprehensive and productive land management system enough to develop a range of policies which sustain this system in a politically acceptable way?

  5.  CPRE believes that securing answers to these questions is fundamental to the national interest. In the answers will lie the future of our countryside. Further CAP reform should not be undertaken until there is a broad consensus on the likely effects of such reform, agreement on what we value about the countryside and how we shall retain what we value in the long term. In our view, the Government is under an obligation to lead this debate, and build a new foundation for farming and environmental land management in the future.

  6.  CPRE has a long and effective track record in driving forward the agenda for reform of the CAP and turning this policy framework into a force for good. We are the only Non-Governmental Organisation which has a remit for the whole landscape and the inter-relationship between rural and urban society, including public enjoyment. The fact that we are not a landowner or land managing organisation, we consider greatly adds to the clarity of our analysis.

  7.  Further reform of CAP could be a great opportunity. But equally, it could help destroy the system which puts to good use the vast majority of the land surface of England and with it, much of its cultural significance, wildlife and distinctive character. We might lose the function of much farmland in England, some of our few remaining societal links to land and the ability to manage and use it productively.

  8.  There is a prevailing climate of uncertainty about the future of farming in England. The motivation of different parts of the Government in driving forward further reform is unclear. In these circumstances, it is essential to foster a state of mutual trust between the wide range of affected interest groups. This can only be achieved by accurate and uncoded communication. CPRE welcomes the CAP Vision document insofar as it has this objective and sets out to achieve it. But because of the ambiguity of much of the report, CPRE warmly welcomes this inquiry by the EFRA Committee.

  9.  We address the issues raised by the CAP Vision paper under the headings suggested by the Committee.

FOOD SECURITY

  10.  CPRE understands the tensions inherent in the pursuit of food and commodity production, landscape character, wildlife habitat and public enjoyment of farmed land. Skilled, productive farming has wrought the superb range of landscapes, upland and lowland which we enjoy as a nation. But great intensification, drainage, the ill-advised use of some persistent pesticides and far greater efficiency in farm practices and farm layout have also destroyed much of this character, habitat and the pleasure derived from it by the public. Before the CAP was established, national agricultural policies which damaged the environment were pursued explicitly in the name of food security. During the last 15 years, a gradual shift in funding, regulation and objectives on the part of Government, farmers and environmental NGOs has started to slow and in some cases reverse the damage with very little reduction in efficiency. Welcome animal welfare obligations have, in particular, imposed increased costs on the livestock sector.

  11.  We regard the ability to produce a wide diversity of food, other commodities and some energy crops to be a major national strategic asset. We recognise the great advances in farming practices and the potential for co-existence of modern farming and greatly improved landscapes and wildlife populations. Much effort has been expended by LEAF, FWAG and others to achieve this reconciliation of production and environmental value. CPRE considers that it is worth building on this knowledge in the future.

  12.  The onset of climate change means far more uncertainty than ever before over the viability and productivity of farm land everywhere in the world. Competitive advantage may one day come to our relatively temperate climate and rich soils in the event that growing conditions deteriorate in major commodity and food producing parts of the world. Even if climate change is less severe than most people anticipate, there are likely to be very serious shortages of water for agriculture in many parts of the world in the near future. Our own relatively efficient use of water in food production will become a more valuable factor in world food production. We should not lose such opportunity by allowing the severe contraction of farming in the short term. Furthermore, it is reasonable, in our view, to regard as significant the strategic ability to produce substantial quantities of our own food at some time in the future, even if conventional methods of discounting give very little value to opportunities more than 20 years' away.

  13.  Some argue that the new cross compliance rules, in force since January 2005, are enough to keep English farmland in a useable condition in the longer term. Good Agricultural and Environmental Condition (GAEC) requirements, in order for farmers to qualify for the new Single Payment (Pillar 1) will keep fields open. But GAEC is of little value without the retention of the capacity and skill to farm the land and produce from it. Land kept in a basic GAEC condition will be of questionable environmental value, too. Occasionally topped fallow land will rarely develop into valuable habitat, and it will fail to have the lustre of productively managed land, so important in creating attractive landscape character. Absence of excessive fertiliser and pesticide inputs will be the main benefit, but this will not in itself secure vulnerable species recovery or even necessarily ensure the recovery of formerly common species. The necessary skill and experience in habitat management of English Nature, the National Trust, the Woodland Trust and others bears testament to this.

  14.  If GAEC is to mean the retention of distinctive grazed, harvested and cultivated plant communities, then the standards of GAEC will have to rise. In many cases, retaining semi-natural habitats, the capacity to produce food and other commodities, and the skills and knowledge to achieve sustainable farming, are mutually dependent. If the new demands of protecting water resources and managing the volumes, velocity and quality of water flows are added, we have a portfolio of activities which will require financial support, but which will contribute hugely to the viability of development and the quality of life. To this we must also add the need to ensure the resilience of habitats under pressure from climate change. This will be made much more likely by the careful expansion and targeting of agri-environment expenditure and the gradual relocation of species as climatic conditions shift. This amounts to need for a land management policy which harnesses the existing skills base and investment pattern to achieve it.

  15.  There is no need to achieve maximum production from farmland in the foreseeable future, but there is a need, in our view, to keep the system of farming viable and stable. The protection of productive land from development is an essential part of this process. The existing planning mechanism protecting Best and Most Versatile Land (BMV) is now weaker, since the publication of Planning Policy Statement 7, Sustainable Development in Rural Areas in 2004. The Agricultural Land Classification System on which BMV is based also took no account of climate change. CPRE considers that there is an urgent need for a new system which protects land from development and which includes the calculation of the potential of land to produce food, fuel and other commodities in changing climatic conditions.

POSSIBLE ENVIRONMENTAL CONSEQUENCES OF THE PROPOSALS

  16.  CPRE believes that it is impossible to disengage the future of farming from the future of the character of English landscapes or the future of most of our wildlife habitats. The Scott Report (Report of the Committee on Land Utilisation in Rural Areas, 1942) still has some resonance today. There are likely to be some exceptions to this, but they are unlikely to be predominant. In some cases the future of the productive use of land in England may mean new crops, and new management methods. Some of these should be positively welcomed. The productive landscapes of bio-energy production could in certain circumstances introduce a range of landscape patterns which are attractive, and provide good habitat as well as establishing a new link between the public and the way the land is managed. Examples might include the experience of buses passing through a landscape of bio-oilfields from which their fuel is refined, or of walking through the coppice which heats the local school. Intensively managed poplar plantations, when mature, are well-known as excellent habitat for that rare and beautiful bird, the golden oriole. Not all bio-energy crops will be so easily accommodated into the English landscape, however, especially those which are not native, such as miscanthus or coppice crops grown intensively without regard for their appearance or wildlife value.

  17.  The dedication of more land primarily for public amenity, on the edge of towns and cities, for example, will still require a management regime, often as intense as conventional farm management. Farmers could be well placed to deliver this considerably more efficiently than other contractors. The integration of sensitively designed new public woodland into farm management and farm businesses could ensure permanent good quality management, with the costs of management reduced and a burden removed from local authorities. In rare cases, probably in a few remote, large tracts of uplands and coastal lowlands, a carefully planned reduction in the intensity of management (sometimes referred to as "rewilding") may be appropriate, to secure more diverse wildlife populations and a different texture of landscape. The cost of managing such land and considerably reducing the conventional production income from it, will need to be borne by government or local authority funds. Nonetheless, to retain recognisable English landscapes and native wild species, the management of much land will need to be similar in important respects to that which is currently practiced.

  18.  This does not mean that all existing management and cropping should be encouraged or retained. There is room for much improvement and some of this improvement will be expensive. Much remains to be done, particularly in terms of the recovery of wildlife dependent on farmland: the recent report The State of Britain's Larger Moths by Butterfly Conservation makes the case for urgent further change in agricultural practices. Even more recent national butterfly survey results tell the same story. It has been calculated that to meet its existing biodiversity targets, the Government may need to spend approximately double the existing annual agri-environment expenditure of £340 million. That figure takes no account of landscape or access-oriented work undertaken by Natural England in the future.

  19.  But it would be mistaken, in our view, to imagine the successful conserving of our iconic landscapes and native species without substantial continuity of familiar crops and practices. By this we mean the mix of permanent, grazed pastures, arable and grass crops, broad-leaved woodlands, orchards and permanent boundaries of woody plants (hedges), stone walls and streams. This applies to our so-called "ordinary" landscapes as well as our National Parks, Areas of Outstanding Natural Beauty (AONB) and Sites of Special Scientific Interest (SSSIs). The very welcome signing of the European Landscape Convention (ELC) in late February 2006 by the United Kingdom Government acknowledges the importance of systems which sustain landscapes whether of national significance or not. Future farming policy will need to take the principles and objectives of the ELC into account.

  20.  Landscape and farming are almost entirely interlinked, including both existing farming practice and effects of farming practice in the past. These often overlap, for example in the case of moorland and heath which are largely result of Bronze Age farming practice and climate change since, or the continuing distribution of trees in field systems originally managed for building timber and fire wood. Much farmland still contains features long since `redundant' in their original role, but now valued for all sorts of other reasons.

  21.  The cultural and recreational value of accessible, managed landscape abundant with wildlife is huge, as is the management of archaeological and historic sites, the result of centuries of temperate, stable climate and continuity of land management.

  22.  The productive use of land largely determines its character and the habitats found within it. More than most other countries, our wildlife, the character of landscape and our farmers coexist in the same place. The damage done to wildlife and landscape by farming during the last 60 years should not blind us to this fundamental truth.

  23.  English Nature (EN) recently presented its report Target 2010. EN stresses the need for continued adequate funding if the PSA target of 95% of SSSIs in favourable or recovering condition is to be met. It is clear that EN will depend to a considerable degree on paying for good farm management to meet and then to sustain this quality of management. In the longer term, the viability of SSSI management will depend on particular, often traditional farming practices, avoiding either over-intensive or too little management.

  24.  If the wider benefits of good management of SSSIs are to be enjoyed, much land adjoining SSSIs will similarly need to be sympathetically managed on a permanent basis. In order that wild species are able to disperse across wider areas, extend their range and replenish their populations, both SSSIs and much more extensive areas of similar, but less high quality habitat will need to be farmed into the indefinite future. This is already beginning to be acknowledged by EN in their own report. The management of Winmarleigh Moss SSSI in Lancashire, Spurn National Nature Reserve in East Yorkshire and Sutton Combe SSSI in Dorset are all good examples.

  25.  Thus a credible strategy for biodiversity in England relies on continued farming of a skilled and supported nature, both lowland and upland, on heath, pasture, marsh and moorland. Those farmers who "provide the service" of managing SSSIs for the most part do not farm SSSIs alone. They also farm undesignated land. Their ability to deliver their conservation activity depends on the continued viability of their farm businesses. It will be important, to secure and establish improvements in wildlife populations, for many farmers to extend their traditional management over wider areas. The success of farming for wildlife will, therefore, depend on the survival of a substantial number of farmers remaining in business, farming in a traditional and often uncompetitive way, in strictly economic terms.

  26.  It will not be possible to reverse the damage done by the intensification of farming after 1947 by simply ending support payments. This is a false hope that should not to be used to justify the eventual ending of support of some kind for farmers. Much of the damage can be undone, but this requires long-term, skilled management on a scale only feasible with a network of farmers and regular, skilled contractors. Habitats which remain are by and large dependent on management based on production too, though often at a level of intensity too low to be profitable without additional support.

  27.  CPRE accepts that the provision of many public goods through land management renders much farmland unviable as productive farmland in strictly economic terms. This situation is likely to become more common in the future. It is vital, therefore, to take account of the wider public benefits. By way of illustration, English Nature mentioned at the launch of Target 2010, an approximate figure of 370 million visits per year to SSSIs. Roughly 50% of all SSSIs are open access land. The calculation of the public benefit of continued traditional management of SSSIs and land surrounding them is urgently required.

  28.  The demands on land management to maintain landscapes with distinct character may sometimes be less onerous than those required to maintain some specific farmland habitats. This is because the specific demands of some species will be more complex than the broad visual appeal of patterns of vegetation, for example. But the cost of working with traditional, often ancient patterns and scales of fields with traditional boundaries, on land which might well be either abandoned, intensified or developed if left purely to market opportunities will still be high. We do not know what that cost might be. CPRE and the National Farmers' Union intend to publish research later this year which attempts to calculate how much the routine management of landscapes, not in pursuit of agri-environment grants, might be worth in purely financial terms. What determines the character of landscapes varies considerably, as does what is still extant of a traditional farm landscape after 60 years of intensification, modernisation and development.

  29.  It is crucial to any analysis of farming policy to remember that great damage to the environment was caused by agricultural policies long before the CAP was established. There is nothing inherent in a post-CAP policy which is more environmentally benign. A consideration often overlooked is the cost in money and time of reversing environmental damage caused during the long period after 1939, when farmland was subject to policies aimed at greatly increasing production with little or no consideration of the consequences for landscape, habitats and archaeology. Huge sums of money and great efforts were spent on intensifying production in ways which removed landscape character and biodiversity, simultaneously often diminishing and curtailing public access at the same time. CPRE suggests that the case for undoing some of the damage of previous policies and restoring wider public benefits from farmland should be considered in the calculation of the cost of ending direct support for farmers. This restitution could be described as a one-off endowment of the public realm. Such a policy would also have great value in contributing to better management of soil and water quality.

THE DEFRA FIVE YEAR STRATEGY

  30.  It is instructive to test the objectives of DEFRA's Five Year Strategy against the CAP Vision paper. CPRE considers that for the achievement of the strategy's objectives to be worth pursuing, they will also need to be secured in the longer term. One objective, the reduction of diffuse water pollution from agriculture, might, in some circumstances, be more easily achieved should agriculture contract substantially. But many others, including the encouragement of sustainable behaviour in young people, sustainable procurement, helping farmers produce sustainable products and improving the quality of SSSIs, will all require a healthy farming industry with the resources to experiment, take risks and develop new ways of working.

HOW WOULD ENGLAND'S RURAL ECONOMY FARE UNDER THE CHANGES PROPOSED IN THE REPORT?

  31.  The CAP Vision paper rightly recognises that a period of transition will be important, whatever the direction of agricultural and land management policy in the future. But in the judgement of CPRE, such a transition will be profoundly traumatic for many farmers, for many reasons, and will require very careful planning.

  32.  For more than 50 years, farmers were exhorted to become more productive, to embrace every means to expand and intensify. Patterns of land ownership, capital investment, the development of technical expertise and husbandry by farmers and their employees were driven in a single direction. For 10 years since the early 1990s, there has been a phase of compensation for income foregone with only marginal effects on most farmers' businesses. Although this system has now been expanded and is now, in part, available to all farmers, the uncertainty over the future both after 2008 and more profoundly, after 2013 is the prevailing sentiment.

  33.  CPRE understands that approximately £9 billion is invested in farming borrowed from the City. This investment cycle is crucial. Some farmers will be at risk from a significant change in support levels, even if this takes place over a number of years. There is a serious risk that capital investment in farm buildings and machinery will slump if farmers are unable to plan their capital investment responsibly. CPRE has anecdotal evidence of this from farms owned by other charities with which it works. The confidence of farm workers and agricultural contractors to be committed to the industry is similarly under threat. It is often said that the much quoted statistic that the average age of farmers, at 59, has remained that way for many years. But CPRE is not satisfied with hearsay, and it is unacceptable that there is no better official understanding of the age profile of the farming community. We suggest that the experience of the Royal Agricultural Benevolent Institution (RABI) would be valuable evidence in understanding the true state of morale amongst farmers and their families. No group in society is well served by feeling unwanted, sidelined or ignored. Whether it is true or not that this is the case, the fact that much of the farming community perceives this is doing harm to the resilience and enterprise of farmers. Fear of investment and absence of long-term planning are also taking their toll on the businesses that service farmers, with consequent reductions in earnings and employment. The increasing power of the supermarkets adds further to the caution in the industry and the narrowing of margins which allow for investment.

  34.  Decline in farmer confidence and farm support services works both ways: the decline in vets makes it more and more difficult to be a responsible livestock farmer, while the decline in livestock farming makes it unviable for vet practices to maintain this service, to the detriment of those who still need the service. CPRE has evidence from the British Veterinary Association of the decline in large animal vet services in Essex, for example. In south east Essex, at least four practices have withdrawn their large animal service in the last four months. One vet has told us that his practice continues to offer these services, but now has to cover an increasingly large geographical area. A recent local meeting to discuss this problem attracted 60 farmers. This vet says "We survive for the moment, but for just how long?" The same problem exists in other sectors. Many livestock farmers in Suffolk and Norfolk are reliant on one abattoir on the border between the two counties. If this business closes, these livestock farms will be severely threatened, together with the local food processing, distribution and retail sector.

THE IMPACT OF CAP REFORM ON DEVELOPING COUNTRIES

  35.  There is an increasingly vocal case for the removal of support payments for English farmers based on the moral argument that such expenditure directly harms the livelihoods of farming communities in developing countries. CPRE would welcome the decoupling of land management in England from damage to the local rural economies of developing countries as is implied in paragraph 1.11 of the CAP Vision paper. Should radical reform of the CAP take place, it would be possible to establish a support system for farming in England which rewarded farmers for the successful "export" of our native landscape in terms of both domestic and international tourism. This is something which is unlikely to be regarded as a priority for those intent on removing trade distortions.

  36.  But we should not be ignorant of the serious consequences of merely exporting environmental damage to other parts of the world, many of which have far greater biodiversity to lose than England, or the consequences of increased carbon emissions from the expansion of long distance food export. Both modes of transport and the methods of agriculture need to be carefully appraised for their carbon performance. Furthermore, the urbanisation of the developing world is proceeding very rapidly in many of the countries most able to compete in agricultural trade. It is unclear whether the decoupling of agricultural support from the damage to developing rural economies will be a lasting or effective legacy. We should not, therefore, contemplate the abandonment of much traditional English farming in the unfounded hope that traditional sustainable agriculture in poorer countries will benefit. For this argument to hold water, there would have to be targeting of support for small-scale farmers in developing countries, which is contrary to the likely outcome of opening up global markets.

THE WIDER DEBATE ON THE FUTURE FINANCING OF THE CAP

  37.  The CAP Vision paper acknowledges that "EU agriculture does not exist in isolation" (1.31, page 16). The paper goes on to suggest that the EU could "take the opportunity of its own reforms to secure reductions in trade distorting support and protection policies of other developed countries in order to maximise the benefits for all" (our italics). CPRE agrees strongly that EU agriculture will be increasingly subject to wider influences and pressures. But for that reason, it is inexplicable that the CAP Vision paper thinks it adequate to let the issue rest with the admirable but inadequate sentiment that follows. Unless English agriculture is to be abandoned to market forces in markets distorted strongly to its disadvantage, there are only two possible conclusions: either that support payments for environmental goods will be universally available and high enough to keep farmers in business thanks to their land management work; or that the liberalising and support reduction process will only take place on a strictly reciprocal basis. It would be entirely unacceptable to CPRE and also reckless, if English agriculture were sacrificed for gains in other fields of international policy.

  38.  There are several reasons for this. First, CPRE strongly believes that our farming industry is an immensely valuable national asset, with strategic, technical, environmental and societal importance far beyond the short-term calculation of contribution to national prosperity from food and commodity production.

  39.  Secondly, the significant contraction of agriculture in England and the collapse of certain parts of the industry, would have far more destructive consequences than in many other countries. This is because of the intimate association over millennia of the productive use of land, wildlife habitat and the character of the landscape, by comparison with places in the world where productive agricultural land and biodiverse wilderness are much more segregated. Examples include Canada, the USA and the formerly collectivised farmland of some central European countries. The serious decline of farming in England would do far more than simply reduce inputs and the area under cultivation or grazing. Networks of semi-natural landscapes (our farmland), with combinations of management to which the majority of native species have adapted, would be lost. The variation across the country, expressed in the style, scale, age and pattern of field boundaries, woodland, farm buildings, livestock, crops and soil, would be suppressed or allowed to degenerate. The three processes most likely to damage locally distinctive landscapes and habitats on a very wide scale are abandonment of farming, ruthless rationalising of farming techniques to cut costs, and renewed and increased intensity of farming. All three are very likely if farming contracts significantly in England.

  40.  Thirdly, as so much of England is dependent on farming for managing and maintaining its character and wildlife habitat, so is it dependent on farming for its marketability for visitors and tourists. The economic interests of rural settlements and market towns would be very severely affected if they were surrounded by landscapes increasingly polarising between dereliction and intensification. The overall proposition of visiting England could suffer too and with it, the fortunes of the tourism industry. The views of Visit Britain on the value of agricultural activity to the tourism industry would be useful to hear. Accelerating suburban development would also be much more likely as diversification away from farming became more urgent still.

  41.  Fourthly, successful rural diversification depends on a wider canvass of agricultural activity, which keeps the countryside distinctive and cared for. Ironically, it is likely that if farming were to decline significantly, the proposition of rural location could become less marketable. This would not be surprising: successful urban communities are rarely derelict or overwhelmingly dominated by commercial interests.

  42.  For CPRE, the reciprocal and synchronised removal of trade distorting measures both within the EU and with the rest of the world is a sine qua non.

A NEW FOUNDATION FOR FARMING AND THE MANAGEMENT OF ENGLAND'S NATURAL RESOURCES

  43.  CPRE concludes that the interdependence of farming, landscape character, wildlife habitat and the protection of natural resources requires an emphatic commitment by Government, the farming community and the environmental NGOs to a future foundation for the support of land management which is not merely sustainable but contributes very substantially to the quality of life of this country. For the time being, the capacity, skills and expertise exist to achieve this. But the economic cost of providing these services should be acknowledged and supported. We agree that the present system is not acceptable in the long term. But we do not accept that the public benefits that farmers, other land managers, environmental NGOs, and Natural England could provide can be bought for much smaller sums than the present CAP budget. Nor do we agree that society should accept a much scaled down level of funding for much more limited objectives. Such a view ignores the great opportunities which could lie ahead. We return to our opening questions. If they are addressed effectively, it will be possible to establish the true cost of the land management activity society should enjoy.

  44.  Like many other organisations, CPRE supports the medium term objective of establishing a new fund for land management. But unlike some organisations, we do not reject the role of wisely managed regulation, which has a valuable role to play in achieving environmental quality. Nor do we believe that the farming community should be regarded as peripheral to the achievement of sustainable land management. On the contrary, we regard it as central to securing this objective. We need to recognise that farming should play a hybrid role, as niche producer, a producer of commodities to high environmental and animal welfare standards and as a supplier of a much wider range of environmental benefits for the public as a whole.

  45.  This new approach to funding land management should include a rigorous analysis of the special circumstances of upland farming which has a recent history of special support. Clearly, the farming of hill land should not be regarded as uncontestable public good in its own right. But the many environmental and societal services that hill farming may provide need to be thoroughly measured, understood and supported where this is justified by the evidence. Where this is not justifiable, other ways of achieving public benefits on hill land through management should be encouraged instead. Careful consideration of possible long-term effects of alternative options will be necessary. This should be done in full consultation with those directly affected by such change. Recent experience from the Spanish Pyrenees suggests that the abandonment of upland farming and the ensuing growth of secondary woodland has done great damage to the efficiency of reservoirs designed when a farmed catchment yielded much more run off into the valleys. Many English reservoirs established below traditionally grazed uplands could suffer the same fate if upland farming collapsed. Conversely, where flooding is an issue below upland slopes, the expansion of secondary woodland on uplands might help to reduce dangerously high levels of run off. Overall, the retention and management of water is likely to become a vital role of upland as well as flood plain farmers in particular.

  46.  CPRE looks forward to a new system for funding land management which rewards farmers positively for the management of features and husbandry which yield public benefits. Individual elements in the landscape, such as ancient trees, archaeological remains, wetlands, field boundaries, traditional buildings and remnant farming systems which are inefficient in producing crops or livestock, but very efficient in producing wildlife or landscape character, should attract positive payment which covers more than the cost of management. This will acknowledge and pay for the benefit derived for society, while allowing farmers to secure some return from selling the fruits of farming in an open market.

CONCLUSIONS

  47.  The competition of so many different interests within the EU means that it is vital that the Government speaks with a clear voice and articulates powerfully the case for continued support for land management, largely through farming. It should not be deflected by short-term budgetary considerations. To succeed, it needs to have command of the facts, many of which are unknown or at best, poorly understood. It needs to give the long-term security of effective and productive land management the high priority it deserves. We need to know the capacity of existing structures and organisations to take on a greatly expanded Pillar 2 and to plan carefully for the expansion of the mechanisms needed to achieve this efficiently and accountably.

  48.  In the short term, the Government needs to commit itself to retaining the level of Pillar 2 expenditure needed to honour existing Environmental Stewardship proposals. If this requires a higher level of voluntary modulation, that should be deployed. The Treasury should match-fund this modulated sum in full.

  49.  In the medium term, the Government should secure the evidence it needs to make responsible and informed judgements on the effects of further CAP reform, the services farming provides and the likely resilience of farming and its associated systems in the face of major changes in support. It should secure firm reciprocal commitments from our trading partners to liberalising reforms. The legislation needed to allow a new system of land management payments which is not based on compensation for income foregone should be planned and taken through Parliament.

  50.  In the long term, and in time for 2013, a new fund should be established, together with any necessary new delivery processes. It should be of a scale equal to the opportunities that exist. Such a fund should allow us to secure and extend the substantial public benefits which could be derived from effective land management. It should the valuable network of farmers and their support services which this country is fortunate to have.

February 2006





 
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