“Farmers across the EU do a vital job in ensuring the safe supply of food, managing the land and contributing to the wider rural economy. They do so in the face of risks including price volatility and unpredictable political decisions.
“Evidence we received suggested it is time for the Common Agricultural Policy to be reformed to more fully recognise the holistic service farmers provide for society by directing funding towards the provision of public goods, including environmental management, food security and stewardship of the land. We believe that income support for farmers in the UK and in the wider EU should continue as the conditions for agriculture are more challenging than in many other major producing countries. Nevertheless, public money should not be used to simply prop up inefficient farmers.
“Direct Payments still have a role to play and we do not propose a move to a US style insurance based approach. However, there is a real risk with the pronounced focus on blanket income support, as opposed to more targeted subsidies, that innovation is stifled and new farmers are discouraged from entering the industry.
“Last year we saw catastrophic flooding in parts of the UK which caused real hardship for farmers in the affected areas. One-off support packages can help farmers through such episodes beyond their control, but a long-term policy should focus on building the sector’s resilience to withstand a wide range of risks including low prices. Our inquiry found that better business skills are key to competitive farm businesses.”