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Whether, in the light of their objective for the Tenancy Reform Industry Group "to maintain the area of let land", they will consider regulations to ensure that transferability of single farm payment without land is managed in a way that is equitable as between the owner and the tenant.[HL3784]
The Parliamentary Under-Secretary of State, Department of Environment, Food and Rural Affairs (Lord Whitty): Under the agreement reached at the Agriculture and Fisheries Council on 26 June, entitlements to new single payment will be allocated to farmers, irrespective of whether they are owner/occupiers or tenants, who claimed under existing CAP subsidy schemes during a historical reference period. We recognise that the option for those entitlements to transfer without land has implications for the contractual relationships between landlords and
Lord Whitty: The Government have yet to receive the final report they commissioned on the potential environmental impacts of the European Commission's CAP reform proposals. However, it is expected that this will cover, amongst other things, the transferability of the new single payment without land. Tenant representatives supported this aspect of the Commission's proposals, while landowner representatives, with some support from the environmental community, favoured a system where the single payment could only be transferred with the land that gave rise to it. The Government remain to be convinced by the environmental arguments advanced in support of the latter view; nor do we expect transferability of entitlements to be a significant factor inhibiting new lettings.
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