Compensation announced for farmers (1988)

From the September 1988 issue of the Socialist Standard

Agriculture

Annual compensation payments of up to £200 a hectare will be offered to farmers who “set-aside" at least one-fifth of their arable land by taking it out of production for five years. Mr John MacGregor, Minister of Agriculture, announced in the Commons.

Mr MacGregor said that the new EEC scheme to reduce surplus agricultural production by set-aside of agricultural land was agreed in principle at the European Council in February, It was compulsory for member states to introduce the scheme for the I988-89 crop production year, but participation was voluntary for farmers.

Land set aside would have to be kept in good agricultural condition as fallow, put to woodland or used for non-agricultural purposes, it could not be grazed.

Land developed for residential, industrial, retail or similar purposes would not be eligible; but the scheme would not include other limitations on non-agricultural use, though planning controls would continue to apply.

Rates of payment would vary. For fallow land and woodland, the payment would be £200 a hectare a year, except in the Less Favoured Areas, where it would be £180 a year. There would be a reduction of £20 in either ease if the fallow area was rotated round the farm.

For non-agricultural use the set-aside payment would be reduced by £50 a hectare.

There were Conservative cheers when he said he had decided not to take up an option under the Community rules to permit land set aside from arable crops to be grazed by livestock, subject to limits on the numbers, because of the difficulties of ensuring proper controls and the adverse effects which such an option could have on existing livestock producers, especially in the upland areas.

Payments would be based on farmers' arable crop pattern in 1987-88 and the first payments would be made for the 1988-89 cropping year.

The Times (15 June 1988) giving details of payments for not growing food.