Sheep National envelope funds to support sustainable farming

Funds from the Sheep National Envelope (SNE) in England will be used to encourage environmentally beneficial farming methods and increase profitability of the sheep sector, farming minister Lord Whitty announced today.

Reflecting recommendations of the Curry Commission, SNE funding for

2003/4, totalling £5.5 million, will be used for

- Creating the Sheep and Wildlife Enhancement Scheme (SWES), which will help farmers achieve environmentally sustainable sheep grazing, administered by English Nature.

- Creating the Better Returns programme, which gives practical

advice to farmers on how to secure better market returns,

administered by the English Beef and Lamb Executive.

- Expansion of the pilot project to test electronic sheep tracing

systems within the English sheep industry, allowing more

participants, and wider dissemination of advice to farmers.

Progress on CAP reform that meets the UK's objectives should mean

that there is no SNE mechanism in 2004/5. However, if the SNE still

exists it will be increased to £10m by reducing the Sheep Annual

Premium by one euro. This will be used for

- A second year of the sheep Wildlife Enhancement Scheme.

- A payment to sheep farmers who are members of recognised assurance schemes.

Lord Whitty said,

It is important to maximise the environmental and business benefits from having the Sheep National Envelope. We all want to see a fair and successful deal for our sheep farmers from CAP reform

negotiations, but I believe these schemes will enable sheep farmers

to enhance the environment, increase their profits and give their customers an even better quality product.

Experience has shown that schemes such as SWES can bring real

benefits to the countryside, such as increases in biodiversity. These schemes will modernise the sector along the lines recommended by the Curry Commission. '