EU managing food supplies.

The Common Agricultural Policy:

The aims of the policy were:

•   To raise food production levels across the European Union.
•   To ensure a fair standard of living for farmers.
•   To stabilise agricultural markets within and between member states.

Their methods included:

• Import Tariffs- These are applied to specific goods imported into the EU. These are set at a level to raise world market prices up to the EU target prices.
• Quotas- Limits the amount of non-EU food that could be imported. These protect the farmers of member states from cheap foreign competition.
• Internal intervention prices- This means that if the global market price falls below the guaranteed price the EU would buy up any surplus produce from its farms. This protects farmers’ incomes. 
• Direct Subsides- These are paid to farmers for growing certain desired crops. This maintains a good level of home grown suppliers. Usually paid based on how much and is used to grow certain crops.

Set-Aside-

‘Set-aside’ is a scheme designed to reduce the production of arable crops. It was introduced in 1988. Farmers in the scheme agree to set-aside (stop using) a percentage (originally at least 20%) of the land they have been using for growing agricultural crops. In return they receive annual compensation payments, a farmer would receive £200 per hectare.  

Land set-aside has to be used for one of the following options, or any combination of them 

• Permanent fallow or rotational fallow. Permanent fallow commits the farmer to setting aside the same parcel(s) of land for the full period of the agreement. Rotational fallow enables the farmer to set aside different parcels of land each year as part of the normal arable rotation. There are detailed rules for the management of the fallow land to ensure that it is kept in good agricultural condition.
• Woodland. Forestry Commission approval is normally required. Until that approval is obtained, the land may be maintained as fallow.
• Approved non-agricultural use. These uses include tourist facilities, caravan and camping sites, car parks, certain sport facilities, riding schools, livery stables and game and nature reserves. All normal planning laws apply. Until planning permission is obtained, the land has to be maintained and managed as fallow.

If the rules are broken by either the original farmer or a successor in title, penalties may be imposed, including the repayment of amounts already received.