Savills |

spring / summer 2017 |

aspects of land

THE ENVIRONMENTALIST

JENNA HEGARTY

Head of Land Use

Policy, RSPB

“Subsidy is an emotive

word and in the context

of UK farming (and

beyond) it has acquired all

sorts of negative baggage.

To be fair, much of the

criticism is justified.

“In the past, when

linked to production,

these payments drove

the intensification of

agriculture, including

significant loss of wildlife

habitat, which is still

causing major problems.

Economists will also

tell you that payments

linked to owning

land are an incredibly

poor use of taxpayers’

money.The money

isn’t linked to any clear

outcome or objective

and perversely tends

to end up far from the

pockets of those farmers

most economically

challenged who are often

delivering the most in

terms of environmental

protection. But that isn’t

to say that public money

shouldn’t go to farmers.

“Farmers manage 75

per cent of land in the

UK and are in a unique

position to restore nature

and many of them care

passionately about this

role.The problem is that

the market doesn’t really

reward environmental

protection and the

amount of public money

dedicated to this kind

of payment has always

been far too small to

make the kind of positive

impact we need to see

– a healthy countryside

rich in wildlife, with

healthy soils and clean

rivers.There is a clear

role for public support

for agriculture in the UK,

and the land on which

it depends, but this has

to be focused on the

environmental challenges

we face now and over the

coming decades.”

THE VOICE OF YOUTH

SAM DILCOCK

Chair, Agriculture and

Rural Issues Steering

Group, National

Federation of Young

Farmers’ Clubs

“What a fiasco! Form

filling, map drawing, box

ticking, professional fees,

late payments, fines and

stress – all for a payment

to prop up the farm

gate price, or pay for

environmental work, or

both.We

don’t seem to

be sure anymore.

“Could we do without

the hassle of subsidies

and just farm however

we want to farm? I

wonder how we would

fill the void in the

annual accounts when

commodities are only

just breaking even and

some producers are still

facing a loss.

“If we didn’t receive

any subsidy for the

‘cheap food’ agenda, then

something would have

to give. Environmental

Focus Areas removed

or no longer managed?

Increased harmful

pesticide and fertiliser

use? Lack of investment

and innovation and

many producers going

out of business?

“Ironically, this might

be what the consumer

and government

unwittingly get because

of future policy proposals

to make farms more

productive. Laudable

objectives, but the devil’s

in the detail.

“To help agriculture

maintain society

someone needs to put

their hand in their

pocket; either the

government, the market

or the consumer.”

THE LOBBYIST

ROSS MURRAY

President, CLA

“Few businessmen would

like their economic

future to be forever

dependent on a state

handout. Farmers are no

different.The Common

Agricultural Policy

(CAP) has evolved

significantly since 2000

and each reform has

moved the payment

away from an economic

subsidy to one directed

at funding the delivery

of wider social and

environmental outcomes.

“The current iteration

of the CAP is pretty

unsatisfactory. It is

neither flexible enough to

support the competitive

agricultural sector needed

to meet consumer needs

nor green enough to

satisfy environmentalists.

“Brexit brings the

chance to create a new

and significantly better

policy for UK farming

and our countryside.

Our ambition must be to

ultimately depart from

a subsidy framework.

Investment can be

directed at helping

farmers to improve

skills, equipment and

infrastructure. It can

help farmers to reinforce

product quality and

welfare standards and to

promote their products

to consumers.

“A new policy can

also provide a new

foundation for delivering

public goods with better

environmental and social

outcomes. A radical new

contract for services is a

smart and effective way

to invest public money.”

THE ESTATE MANAGER

KEN JONES

Director of Rural and

Coastal,The Crown Estate

“Cheap and plentiful

food is usually the

aim of government,

particularly in times of

economic challenge, so

to go cold turkey on

support payments could

have socially undesirable

consequences just as

election time looms.

“Perhaps more

fundamental is the

need for the industry

to be profitable and

self-sustaining.

“I believe support

will continue, although

targeted differently

and aimed at longer

term self-sufficiency in

more productive areas

and preventing rural

depopulation in more

challenging landscapes.”

“COULD WE DO

WITHOUT THE HASSLE OF

SUBSIDIES? I WONDER

HOW WE WOULD FILL THE

VOID IN THE ACCOUNTS

WHEN COMMODITIES ARE

ONLY BREAKING EVEN”

IN NUMBERS

How much are subsidies

worth to different farm

types, as a percentage

of income?

111

Grazing livestock

(in less favoured areas)

Cereals

Dairy

SOURCE: SAVILLS FOOD AND FARMING:

SUBSIDIES AND TRADE