Large Farms' subsidies should be capped

Proposed reforms to the Common Agricultural Policy which would cap the extortionate subsidies paid to Britain's largest farmers should be welcomed says Former Liberal Democrat Shadow Secretary for Agriculture, Andrew George MP.

Mr George, who is the MP for the West Cornwall and Isles of Scilly constituency of St Ives, has been a long-standing campaigner for reducing the subsidies paid to the largest farmers and businesses and redistributing the money to smaller full time farmers. Under EU proposals any farmer receiving over £71,000 (€100,000) through the Single Farm Payment Scheme would have their subsidy cut. The largest subsidies – those above £213,000 (€300,000) – will be cut by 45% if the European Commission's proposals are approved.

Many of the Cornish farmers Mr George represents often exist on the very margins of financial viability and many have the industry in recent years. Over half live below the Government's official poverty line – whilst large landowners and agricultural giants, such as Sugar Refiner Tate and Lyle which received £127 million in financial assistance in 2005, are subsidised to the tune of millions of pounds.

Mr George said: "I cannot understand how a Labour Government can happily justify giving million pound or more tax subsidies to some of the most wealthy millionaire landlords and companies when there are so many small family farms which struggle on the very margins of survival.

"The Government should support the European Commission in aiming the support at those farmers who most need and deserve it and taper payments away from those who don't. The support system has favoured large over small farms for decades. It is time that Government took up the European Commission's proposal and negotiated something better for those farmers who are the bedrock of our countryside and rural communities but who are being driven off the land in their droves."