MOMENTUM IS building up to drive the 2008 reforms of the common agricultural policy (CAP) through by the end of next month, writes Ewan Pate, farming editor.

Although these have been billed by EU farm commissioner Mariann Fischer Boel as simply a mid term “health check” they do in fact herald some fairly major changes.

Completing them on schedule would be quite an achievement given that such reforms in the past have involved much delay and ended with forced compromises.

But Michael Mann, Mrs Fischer Boel’s spokesman, was confident that the momentum was there now for a satisfactory agreement.

Speaking to Scottish agricultural journalists in Brussels this week he said, “The serious discussions have now started with high level group meetings under way involving top civil servants.

“Last week also saw the first trilateral meetings held between the French presidency, the EU Commission and individual agricultural ministers from the member states.”

There will then be a Council of Ministers meeting in Luxembourg on October 25 and 26 which should produce a compromise paper.

Milk quotas could be a problem with some states wanting them to be abolished forthwith and others, notably Italy, pushing from them to be retained and increased by 10%.

However, if all goes according to plan most of the loose ends should be tied up by November 18 when the European Parliament gives its opinion, with ministers possibly approving the health check the next day.

There will be political manoeuvring before then with modulation almost certainly to the fore. The proposed increases in compulsory modulation of Single Farm Payment are a problem for four or five member states.

Britain generally accepts increased compulsory modulation as long as there is a commensurate reduction in voluntary modulation, a mechanism only used in the UK and Portugal.

The suggestion is that some of the member states most against increased voluntary modulation may be placated by the offer of more money for rural development from the modulated funds.

This could find its way back on to farms for example in aid to small milk producers in hill areas.

Some things won’t happen—for instance a reintroduction of tobacco growing subsidies in southern states.

The health check has reacted in several ways to the present food crisis, according to Mr Mann. Set-aside will be a thing of the past and milk quotas will be phased out.

There has been talk of recoupling some areas of farm support so that production is directly subsidised. In principle this is unlikely but in practice the issue is less clear cut.

In certain member states, notably France, directly coupled payments still remain at about 50% of previous levels whereas in the UK they have entirely gone with the sole exception of the Scottish Calf Premium Scheme.

The EU Commission may not want coupled support but there may be ways around this.

The French are believed to favour a grassland premium, which would see modulated money move from the arable sector to extensive grassland.

As to moving from the historic basis of calculating Single Farm Payment, as employed in Scotland, to an area-based system Mr Mann was clear.

“The commission wants everyone to move to an area-based system but we are not going to force it through. That decision will be for post 2013.”

But it may be left open for member states to exclude non-farmers from receiving SFP. This is unlikely to be retired farmers or those no longer actively farming their land but large businesses such as water boards and utility companies in receipt of SFP.

The health check will be the last major reform over which Mrs Fischer Boel will preside.

Her term as farm commissioner will end next June just before the elections for the European parliament.

She will be 65 by then and has made clear her wish to stand down and spend more time at her family farm on the Danish island of Funen.

Mrs Fischer Boel’s tenure has been generally harmonious and her straightforward and pleasant manner has earned her friends.

Unfortunately some of the most contentious issues, such as pesticide approvals, electronic sheep identification and animal transport, are not within her remit.