The Review of the Less Favoured Areas Scheme - European Union Committee Contents


Examination of Witnesses (Question Numbers 500-519)

Ms Maria Rosander

4 MARCH 2009

  Q500  Lord Brooke of Alverthorpe: Is there any evidence of abandonment taking place?

  Ms Rosander: Yes, of course.

  Q501  Lord Brooke of Alverthorpe: I have spent quite a lot of time in Jamtland.

  Ms Rosander: That area specifically is not that badly affected, I think. It has a lot of dairy production there and that has actually increased.

  Q502  Lord Brooke of Alverthorpe: I seem to have experienced a lot of families seeing their children leave and not want to continue farming but simply use their homes as summer residences.

  Ms Rosander: Yes, of course, that is a problem. It is difficult to live that far away. The infrastructure is good but it still takes quite a long time to go to bigger cities or abroad. In Jamtland dairy production is okay compared to the counties around, but, of course, there are big signs of land abandonment. When I looked at the figures of how much LFA area we had at the time of our accession, which was in 1995, it was 59 per cent and now it is 48 per cent, so for me who did not know anything I was like, "Oh, that is strange, that it is such a smaller part now", but that is because—

  Q503  Chairman: It has gone out of production. Should maybe be "out of production"?

  Ms Rosander: Yes, and production as such has diminished more in those counties than we are producing in the southern regions which are not LFAs and then, of course, the percentage is diminishing. However, I do not think it is quicker in Sweden than in any other European country. I think it is about the same pace.

  Q504  Viscount Ullswater: Could you explain to us where you see the LFA payment fitting into the other payments that are given to agriculture, particularly the single farm payment, and then any other agri-environment scheme which might be available under Pillar 2?

  Ms Rosander: Of course, I got your questions ahead and I saw that one and I asked myself if it was a trick question.

  Q505  Chairman: We never do that! Shame on you!

  Ms Rosander: To me that also is easy. That is why I asked myself, "Is there something else that they would like me to answer on this?", because the single farm payment is an income support, keeping up the income for producers. The agri-environmental schemes are for producing environmental benefits that society wants and the LFA is for compensating for natural handicaps, so there should not be any environmental link to the LFA. We should not be paying LFA to receive environmental benefits. It is just compensation for natural handicaps. That is how I understood the question but maybe you were looking for something else.

  Q506  Viscount Ullswater: I suppose you have answered it in your earlier answers in that you see the LFA payment as being essential for keeping agriculture going in those designated areas. With the single farm payment, obviously, the amount of agricultural activity could drop because it is not tied so much to production or to farming income.

  Ms Rosander: No. It will probably keep some sort of landscape open since we have cross-compliance but you would not see grazing animals when travelling in the countryside, so the LFA helps bring some sort of societal benefit.

  Q507  Viscount Ullswater: It is more of a landscape protection payment, do you think? It is to maintain the landscape?

  Ms Rosander: That is what it leads to but the intention with the payment is to compensate for not having enough income, which makes this whole system very confusing, but we should not get into that. We were paying historically for good production in some regions and now we are paying on the other hand for those who do not have the possibility to produce. It is a confusing system, looking at the whole agricultural policy.

  Q508  Chairman: Is it possible to say that it is not an income support system?

  Ms Rosander: Yes. That is not the purpose of the payment.

  Q509  Chairman: It is not the purpose but that is the effect, is it not?

  Ms Rosander: Yes, that is so, I guess, with all the subsidies or supports you get. It helps your income.

  Chairman: A number of your colleagues, I have to say, see it foremost and almost entirely as an income support measure.

  Lord Cameron of Dillington: But they do not necessarily admit it.

  Q510  Chairman: They do by the time we have finished with them!

  Ms Rosander: That is clear. That is what we say with the decoupled payments, with the farm payments. It is not supposed to contribute to production but, of course, it does because it is a base. It helps me, having that secure base in my production. It helps me to make my business decisions in the rest of the company, so, of course, it is helping my income but it is not an income support as such. In trying to reform the whole political area, which we would like to do in Sweden, I think it is necessary to try to keep the focus on what we are supposed to achieve with this support and, I guess, the other supports, trying to keep the objectives separate and clear in order to try to reform them and see what it is that society wants and then operate to that.

  Q511  Chairman: It is the benefits that society gets, is it not?

  Ms Rosander: Yes. It is a very theoretical discussion but, of course, it is an income support at the same time.

  Q512  Earl of Arran: Changing the subject to criteria and in particular to designation criteria, you have already got biophysical criteria which are being discussed at the moment. In your opinion, are there additional or alternative designation criteria that should be being discussed at the same time?

  Ms Rosander: Now we are getting into the questions where I do not have a lot of answers to give you; I am sorry—or am I going too fast now?

  Q513  Lord Brooke of Alverthorpe: Question 4.

  Ms Rosander: Yes—sorry, I do have an answer to your question.

  Earl of Arran: Good; I was getting worried.

  Q514  Chairman: And the answer is "Maybe"!

  Ms Rosander: I will answer the other ones as well. It is just that we have commissioned an assignment to the Board of Agriculture to look into these issues more, so we do not have any definite answers. As I started saying, we are positive about these biophysical criteria that the Commission is discussing with us and we think we should try using them as a basis for delimitation on natural handicap payments. The only extra criteria we have discussed are small and irregular fields, and that is linked to what I said before about the forests, that we have a lot of forests in this area which makes it difficult to have larger fields brought together, so you have a little field here and there due to the physical shape of the land, and that is what we are talking about. Our experts think that this is included in the criteria as suggested by the Commission anyway, so it is not anything that we are pushing for or suggesting should be brought in. That is what is specific to Sweden, and for Finland probably as well.

  Q515  Earl of Arran: Are your farmers keen to retain the status quo or are they pushing for a change in the LFAs?

  Ms Rosander: They are quite reasonable, actually, and I think they see the need for a change to make it clearer that this is a payment to compensate for natural handicaps and not for socio-economic reasons. We have other policy areas to deal with that. At the same time they know that we are probably not going to lose out that much in the total area.

  Q516  Earl of Arran: So you are keen on their behalf to come to the negotiating table?

  Ms Rosander: "Keen" is a very positive word. We have not had a discussion with them. I think they are reasonable in thinking that we have to look into this. I think it is possible to look out for their interests as well. I think it is other Member States which have bigger issues with their national farming associations. I do not think we will lose out that much on agricultural land in the review.

  Q517  Lord Brooke of Alverthorpe: Which states do you think will have most difficulties—off the record.

  Ms Rosander: Off the record. (There followed a discussion off the record)

  Q518  Viscount Ullswater: You have agreed to some harmonisation of overarching criteria set at EU level.

  Ms Rosander: Yes, absolutely.

  Q519  Viscount Ullswater: But your definition of "small and irregular fields" you think should be left to the flexibility that a Member State might be able to include. Is that the way you look at it?

  Ms Rosander: No. What my experts have told me is that they believe that this is covered by the biophysical criteria proposed by the Commission so there is no need for us to propose other criteria. The concerns for Sweden, looking to the designation criteria, are pretty much covered. Coming to the next question of the eligibility criteria, there we see the need for more national flexibility.



 
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