CBI chief welcomes start of free market agricultural reforms

CBI Chief Digby Jones has welcomed the new CAP reforms which come into effect on 1 January 2005.

Commenting on the changes he said:

"The EU's CAP reforms, to be phased in over eight years, are a significant move forward. The new flat rate subsidy, will no longer be linked to production. Instead the new scheme will encourage good land management, giving farmers greater freedom to seek other markets as well as acknowledging and rewarding environmentally friendly farming practices.

"The NFU and British farming have played a key role in achieving these sensible reforms. British farmers have led the way on structural reform and deserve to be allowed to make the most of new opportunities.

"I believe the reforms will be a major contribution to securing agreement on agriculture within the context of the Doha Development Agenda negotiations. It's important that other countries, particularly the USA and Japan follow Europe's lead."