Farm marathon to focus on trade-offs

Date: 20/06/1996

By Michael Mann

WHEN agriculture ministers gather next week for their six-monthly marathon meeting, the potential cost of any measures they agree will be uppermost in the minds of Commission officials.

Just a few months ago, the Commission was looking with satisfaction at considerable savings on agricultural spending, thanks to the unexpected buoyancy of the markets.

But the Union's beef market collapse as a result of the BSE crisis has altered the situation to such an extent that very little cash remains in the coffers to pay for any of the 'sweeteners' which farm ministers traditionally seek at their June meeting.

When ministers emerge bleary-eyed from their get-together on Wednesday or Thursday next week, the result of their labours will be a compromise involving trade-offs on a whole range of often unrelated measures.

Top of the agenda is the debate over how much cereals and oilseeds land should be left uncultivated next season under the 'set-aside' scheme introduced under the 1992 Common Agricultural Policy reform. Although no formal decision will be taken until July's ministerial meeting, there is likely to be considerable pressure to include some sort of solid commitment in the conclusions of this month's meeting.

Discussions at the Special Committee for Agriculture suggest that the most likely compromise will be something around 5&percent;, half the current total. This was the figure endorsed this week by the Commission.

Rising cereal prices and world shortages have heightened the pressure for an increase in crop area.

In theory, financial savings should also be possible as aid payments for cereal production are lower than compensation payments for setting land aside.

Ministers will also look at a Commission proposal to allow member states to concentrate penalties for exceeding area quotas on particular regions, rather than penalising all farmers equally regardless of whether they obey the rules.

With beef producers still seriously threatened by the collapse of their market, ministers will come under pressure to agree the share-out of the 650 million ecu made available from this year's budget for direct compensation. Unsurprisingly, several member states have already begun to manoeuvre for the total to be increased. But Commission officials insist 200 million ecu is the maximum slack available.

After lengthy delays, the package of measures agreed next week is likely to include reforms of the Union's fruit and vegetable market. Although uncontroversial in that they alter virtually nothing, the price proposals will also be the subject of detailed negotiations right down to the wire as ministers seek to limit even minor losses their farmers may suffer.