Montgomeryshire Liberal Democrats

Bates gives cautious but warm welcome to Minister's radical decision over Axis 2 review

Shadow Minister for Rural Affairs Mick Bates AM has given a cautious but warm welcome following the Minister Elin Jones' announcement over the review of Axis 2, which will see the establishment of a new scheme 'Glastir' to replace the current land management schemes under Tir Cymru.

Commenting Mick states:

"The Minister's decision over the Axis 2 review is forward thinking and a step in the right direction towards an agri-environment scheme which works for farmers and for wildlife and I am pleased to offer my support. The decision is the best solution to ensure an effective land management scheme, as well as recognising the importance of retaining farming families in the hills of Wales and avoiding massive upheaval in 2013 when the Single Farm Payment is due to change.

"The current suite of schemes under Tir Cymru have been in place for over a decade - as the environmental impacts of climate change become more and more apparent, a revised land management scheme will be key to ensuring that we can deliver on the key environmental priorities of biodiversity, climate change and water.

"The decision is the best practical option as it provides for agri-environment schemes in the wider countryside where the greatest declines in widespread farmland birds are happening, at the same time helping to stabilise carbon emissions and avoid run away climate change. It would make use of the wealth of good practice already on Welsh farmland on which to base new approaches and build on successful elements of existing schemes to meet these environmental challenges.

"The announcement is radical and in line with the Rural Development Sub-Committee recommendations. Given the scale and complexity of meeting the double environmental challenge of halting biodiversity loss and reducing carbon emissions, an integrated approach by the Welsh Government is key and I believe that the Glastir scheme has the potential to achieve this. However it is vital that the whole Axis 2 budget is clearly aligned to deliver these outcomes."

Notes:

STATEMENT BY THE WELSH ASSEMBLY GOVERNMENT

Title:

Wales Rural Development Plan: Axis 2 Review

Date:

5 May 2009

By:

Elin Jones, Minister for Rural Affairs

In line with One Wales, last September I issued a consultation on the land management measures provided under Axis 2 of the Wales Rural Development Plan. These measures cover Tir Gofal, Tir Cynnal, Tir Mynydd, Organic Farming and the Better Woodlands schemes.

The consultation paper set out the challenges and opportunities that climate change, carbon capture, water management and bio-diversity present for farming with a number of options proposed on how support under Axis 2 might be re-directed to address them.

Ninety two formal responses were received as well as the report by the Rural Development Sub-Committee and a plenary debate. These have all been analysed carefully. In assessing the options, I have also had regard to the Welsh Assembly Government's Sustainable Development and Environment Strategies.

Following careful consideration, I have decided to introduce a new scheme to be called Glastir. It will have two elements: the first will be open to all farmers in Wales, and the second will be targeted at those areas that can deliver the environmental outcomes that are most important to Wales.

Having listened to concerns that any change must be accompanied by sufficient time for farmers to plan ahead, I have decided not to introduce the new scheme from 2010 but from January 2012 with transitional arrangements in place until 2014.

The current schemes have been effective, but were designed in a different context. The land management scheme for the coming decade must respond to the challenges set out in the CAP Health Check Agenda, agreed last November. These challenges - climate change, water management and bio-diversity - will form the basis of land management schemes across Europe from 2014. Any scheme introduced today that didn't reflect these challenges may well have needed to be changed within a few years, causing upheaval to the sector and significant administrative waste. A major change to the CAP Single Payment Scheme is also anticipated in 2014 and it is important to avoid two major changes running concurrently.

I considered carefully whether the current schemes could be adapted to meet these future challenges. Tir Mynydd is a compensatory measure to recognise the additional costs and income foregone associated with farming in more marginal areas. Under the European Commission's rules for compensatory payments, this cannot be enhanced to deliver on the health check challenges within the budget available. I have therefore decided that adapting current schemes is not a viable option to secure the long term stability of the industry.

In developing a new scheme, I am acutely aware that it must support a sustainable agricultural industry, with the family farm at its centre. Spend forecasts for our land management schemes for 2012 and 2013 is £89 million per annum and this level of farm payments will be maintained under the new scheme.

Whilst there will no longer be a dedicated measure for the Less Favoured Area, there will be a 20% premium for all LFA farmers entering the all-Wales element of Glastir. This will include all dairy farmers who are currently excluded from receiving LFA payments. This will be a flat rate payment with no distinction between Severely Disadvantaged Areas and Disadvantaged Areas. Although much work remains to be done on the new operational arrangements, initial projections suggest the all-Wales element of the scheme will attract a base payment of some £28 per hectare with a 20% premium for farmers within the current LFA boundary raising the payment to £33.60 per hectare. Under the Tir Mynydd 2009 scheme, payments per hectare were £24 for the DA and £28 for the SDA.

Glastir will provide an annual £5 million capital grant from 2012 for the installation of renewable energy and energy efficiency technologies on farms, together with additional targeted support for the provision of educational and permissive access. Within Nitrate Vulnerable Zones, grant assistance will be provided for capital works that are undertaken to improve manure and slurry handling and mitigate diffuse pollution. The rest of the proposed catchment sensitive farming scheme will now become part of the targeted element of Glastir.

The consultation invited views on providing support for energy crops in Wales. There was no overall conclusive view emerging from consultation. I have decided therefore that our current approach of refocusing Axis 2 and the planned capital grant scheme is a better use of the resources available to address the priorities that underpin my announcement today. However, we will continue to work with supply chains for local power schemes supported by the Assembly Government.

My announcement today will provide:

The delivery of targeted environmental actions in support of the delivery of biodiversity, climate change and water outputs

Broad support for environmental improvement of farms throughout Wales with access for all farmers to the basic Glastir scheme; and

Rationalising the current suite of schemes into one straight forward process for farmers

As a consequence of my decision:

With immediate effect, the Tir Gofal and Tir Cynnal schemes are closed to new entrants. Those farmers who have already had their first farm visit by 8 May or whose agreements are further advanced than this will have their applications processed.

I am still considering the integration of the Organics scheme into Glastir and I will be making a further announcement in due course.

The last payment under Tir Mynydd will be in March 2011.

For 2012 only, farmers who enter contracts to deliver under the Glastir scheme will be eligible for an advance payment that would be released in September/October with the balance payment paid in December. Thereafter, scheme payments would be paid in December.

The delivery of the new land management arrangements are subject to agreement with the European Commission. A formal proposal will be submitted to the Commission next month with the aim of securing approval in the autumn. Although the exact timeline is not yet finalised, it is likely that the first application window for the new scheme will open in Summer 2010, with contracts coming into force in January 2012.

In the meantime, I have instructed my officials to work closely with the farming and countryside interests to deliver the operational detail for effective delivery of the new arrangements in 2012, especially with regard to a reduction in bureaucracy and red tape.

Glastir marks a major change. Farmers produce food and manage the land and they do so for their own commercial benefit and for the good of wider society. Glastir will pay farmers to manage the land in a way that will meet many of today's society's priorities.

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