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Sunday, January 10, 1999 Published at 21:26 GMT


UK

Farmers chew the cud over EU reform

CAP guarantees income for their produce ...

By Environment Correspondent Robert Pigott

One week before the European Union debates fundamental reforms to the way it finances agriculture, British farmers are to be consulted about what they want from a new agricultural policy.


BBC Environent Correspondent Richard Wilson: All agree that reform is essential
What is being billed as a farming summit will bring together Agriculture Minister Nick Brown, farmers and environmental groups on Monday.

European ministers are shortly to consider reducing the money paid to farmers for their produce, and British farmers are concerned that they could lose income.


[ image: ... but policy creates over-production]
... but policy creates over-production
The EU's Common Agricultural Policy guarantees to pay farmers minimum prices for products like beef, milk and cereals.

The policy tends to encourage farmers to produce as much as they can, creating surpluses.

Buying and storing surplus food is expensive and the Common Agricultural Policy costs the EU more than £27bn a year - more than half its total budget.

Extending such price guarantees to farmers in eastern Europe with the enlargement of the union, would be hugely expensive, and urgent reforms of agricultural policy are to be discussed by EU ministers next week.

Savings 'crucial'

British farmers will press Mr Brown to ensure they are fully compensated for loss of income if subsidies are cut.

However, environmental groups, who will also attend the summit, will argue for more of the money paid to farmers to be conditional on measures to protect wildlife and the countryside.

Earlier, Mr Brown said reform of the CAP was "crucial" to make savings for consumers and to give further support to rural Europe.

"We are trying to restructure it so that we can have a more rational structure," the agriculture minister told GMTV.

Britain was in the vanguard of nations seeking reform, he added.





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