NFU Cymru responds to Axis Two measures review
NFU Cymru has today told the Welsh Assembly Government that in its view the best way forward for the future structure of support for environmentally sustainable land management in Wales would be to amend the existing LFA (Less Favoured Area) Scheme by adding voluntary environmental enhancements chosen from a menu of options. However, if this option is to be pursued it would be essential that it be accompanied by measures for lowland farmers to have access to agri-environment measures to recover modulated funds.
NFU Cymru has widely consulted its 15,000 members throughout Wales before coming to this conclusion which it has sent to the Welsh Assembly Government today in response to its review of land management actions under Axis 2 of the Rural Development Plan for Wales 2007-2013.
The Union believes that this option (1b in the consultation) has the potential to fulfil EC requirements and also deliver on the elements required of a successor scheme. The chosen proposal also obviates the concerns NFU Cymru has in terms of a significant re-distribution of Axis 2 resources and the impact that could have on the viability of farm businesses.
In its response and recent oral evidence session NFU Cymru has emphasised how the current Axis 2 measures make a significant contribution to farm business income. Dai Davies, NFU Cymru President said, "Axis 2 measures are a major determinant of the economic viability of farms in Wales and without which there would be adverse economic, environmental, social and cultural ramifications."
Farm business survey data for Wales shows that in 2006 / 07 income from Axis 2 measures contributed on average some 27% to the farm business income with the income from agriculture excluding this and other support representing a loss of £9,600 for the year. The impact of Axis 2 measures in the LFA grazed livestock sector is even greater at some 47% of farm business income and where without such support the extent of the income loss would have increased to £17,000.
In its submission to the Welsh Assembly Government NFU Cymru has recognised that whichever option is chosen it is likely only to be valid for the remainder of the current Rural Development Plan period (until 2013). Therefore the Union has recommended that the Assembly considers drawing up a pilot scheme (under option 2 of the review) with a view to evaluating how successor scheme(s) might be developed during the intervening period.
When considering successor arrangements for the current Axis 2 measures, NFU Cymru considers it essential that the farming industry in Wales should be sustainable in the broadest terms ie, economically, environmentally, socially and culturally and the driver for all this will be determined by profitability.
Dai Davies said, "NFU Cymru has stated that any successor measures must maximise the level of resources that reach the individual farm business. Farmers need to be able to recover modulated SFP funds, particularly as the level of modulation rises and that there is no significant redistribution of resources under the Axis 2 measures which may have the potential to undermine business viability and result in the loss of more farming businesses."
