Northern Ireland Forum for Political Dialogue

The Forum for Political Dialogue met between 1996 and 1998 in Belfast as part of the negotiations that led to the Good Friday Agreement.

Standing Committee D

To examine the problems being faced by farmers and fishermen in Northern Ireland, and report to the Forum by 31 December 1996. [Note that the Committee is alleged to meet every Thursday but we do not have records of their meetings. To avoid speculation on meeting dates we have only modelled sessions which we know took place.]

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[Editor's Note: The final 2 reports of this committee are presented to the Forum on this date]

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Northern Ireland Agriculture - Preparing for the Future: Standing Committee D report

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Northern Ireland Forum

for

Political Dialogue

~~~~~~~~~

NORTHERN IRELAND AGRICULTURE

- PREPARING FOR THE FUTURE -

A REPORT PREPARED BY

STANDING COMMITTEE D

(AGRICULTURE & FISHERIES ISSUES)

~~~~~~~~~

Presented to the Northern Ireland Forum for Political Dialogue

on 24 April 1998

Note

DRAFT REPORTS

This report has been prepared by Standing Committee D for

the consideration of the Northern Ireland Forum for Political

Dialogue. Until adopted by the Forum in accordance with its

Rules, this report may not be reproduced in whole or in part

or used for broadcast purposes.

NORTHERN IRELAND AGRICULTURE

- PREPARING FOR THE FUTURE?Agriculture, Forestry and Fishing account for 5% of gross domestic product in

Northern Ireland and when food processing and agriculture input supply are

included, the share rises to 8%. Approximately 6% of the Northern Ireland

workforce is engaged in Agriculture, Forestry and Fishing and a further 4% in

ancillary industries. The Agri-business sector as a whole makes a significant

contribution to the production base of the regional economy, accounting for

one-quarter of the GDP from and one-third of the employment in, agriculture and

the production industries taken together. In these circumstances, Standing

Committee D (Agriculture and Fisheries Issues), being aware of the importance to

Northern Ireland of the Agriculture Industry, calls on Government to negotiate with

the European Union an Agenda 2000 package which recognises the peripherality of

Northern Ireland within the European Union, the particular problems which

therefore affect Northern Ireland farmers, and the importance to the economy of

Northern Ireland of its Agriculture Industry.

In recognition of the key importance of the Northern Ireland Agriculture Industry,

and of the need to ensure that it is best placed to meet the challenges of the New

Millennium, the Committee recommends that the Secretary of State for Northern

Ireland should without delay require the formation of an interdepartmental small

focus task force. This task force should be given responsibility for the analysis of

support mechanisms local, national and international which are, or may be made

available, for progressing the restructure of the agricultural industry and for making

relevant recommendations.

NORTHERN IRELAND AGRICULTURE

- PREPARING FOR THE FUTURE -

CONTENTS

Section Page

1. INTRODUCTION 1

2. AGENDA 2000 - FOR A STRONGER AND WIDER

UNION 5

- The Proposals 5

- The Objectives 6

- CAP Reform Proposals 8

Cereals 8

Beef 9

Milk 10

Rural Development 11

Modulation 11

3. THE UK ATTITUDE TO AGENDA 2000 13

4. NORTHERN IRELAND AND AGENDA 2000 15

5. MEASURES TO ASSIST FARMERS TO DIVERSIFY

AND ADAPT TO CHANGE 20

- Early Retirement from Farming 20

- DANI Consultation Paper on Early Retirement 23

Sector Coverage/Geographic Coverage/

Size of Farm 24

Aid 25

Structural Funds 25

Balance 26

CONTENTS

(Cont'd)

Section Page

Agri-Environmental Issues 26

Legal and Taxation Problems 27

Transfer of Production Quotas and Arable Aid 28

The Conacre System 29

Holistic Approach 30

Nature of Scheme 31

- Diversification 31

- Education and Training 32

- Planning 35

6. SUMMARY OF RECOMMENDATIONS 39

ANNEXES

A Membership of Standing Committee D

B Minutes of Proceedings

C Minutes of Evidence

D Written Evidence

1. INTRODUCTION

1.1 In January and February 1997, Standing Committee D arranged a

programme of visits to venues across Northern Ireland to hear at first hand

the problems and difficulties being faced by farmers. Evening meetings

were held in Enniskillen, Banbridge, Coleraine, Dungannon, Omagh,

Newtownards and Ballymena, during which farmers took the opportunity

to ensure that the Committee members present were well briefed on the

issues of the day. The Beef Export Ban and its effect were, of course, top

of the agenda. However among the other issues addressed, the most

frequently mentioned were the need to encourage young people into

farming and to provide for a farm retirement scheme.

1.2 In the course of Forum Business on 14 March 1997, the day on which the

Forum adjourned for the General Election, the Chairman of Standing

Committee D indicated that on return to business following the election,

the Committee intended to address the problem of the sons and daughters

of farmers turning away from the land, rural planning issues, and the need

for a retirement scheme.

1.3 Following the break for the General Election, the Committee met on

4 June 1997 and arrangements were made for the collection of written and

oral evidence, for visits to the Department of Agriculture for Northern

Ireland (DANI) Colleges, and for the engagement of consultants to

examine a farm retirement scheme.

1

1.4 On 16 July 1997, the EU Commission issued its strategy for strengthening

and widening the European Union ('Agenda 2000 - For a Stronger and

Wider Union'). As this strategy looked ahead to the New Millennium and

contained proposals which would affect farmers in the future, the

Committee decided to pursue this proposal and advertised for comment in

the press as well as seeking evidence from a number of persons and

bodies.

1.5 On 22 December 1997, Dr Cunningham, the Minister of Agriculture

Fisheries and Food announced that the Government intended to open early

consultations with the farming industry on restructuring in the livestock

sector. He noted that major changes in the beef sector were likely over

time, with fewer producers, but a more viable industry emerging in the

United Kingdom and in Europe. Dr Cunningham went on to indicate that

the Government would explore with interested parties whether the

European Union's early retirement scheme and other EC structural

measures, could play a part in assisting the process to change and

achieving the Government's long-term aims.

1.6 At an early stage in its deliberations on Agenda 2000, the Committee

identified the need to discuss the issues on this topic with the Department

of Agriculture for Northern Ireland (DANI). While DANI is responsible

for Agriculture matters in Northern Ireland, it is the Ministry of

Agriculture, Fisheries and Food (MAFF) which negotiates in Europe on

behalf of the United Kingdom as a whole. Despite efforts by the

Committee to arrange a meeting with MAFF officials a refusal was

obtained with an indication that DANI was best placed to answer the

Committee's questions. This refusal was in contrast with the agreement of

2

Mr John Bensted-Smith of Commissioner Fischler's Cabinet to brief the

Committee on the Agenda 2000 CAP proposals. Accordingly, a

deputation of Committee Members visited Brussels on 22, 23 and

24 January 1998 and not only received a very full briefing from

Mr Bensted-Smith, but also had the benefit of a short meeting with the

Agriculture Commissioner, Commissioner Fischler at which the

opportunity was taken to lobby him on the Beef Export Ban. During the

visit, meetings were also held with Members of the European Parliament

and with the Northern Ireland Centre in Europe. The particular thanks of

the Committee go to Mr Jim Nicholson MEP who arranged the meetings,

to Mr Bensted-Smith for the time he took to give the Committee

deputation such a full briefing and to Commissioner Fischler for taking

time out of a very busy schedule to meet with the deputation.

1.7 On 18 March 1998, the European Commission announced the Common

Agricultural Policy (CAP) Reform proposals which were covered in the

earlier Agenda 2000 papers. On the same date the Department of

Agriculture for Northern Ireland circulated a consultation document

seeking comments from the agriculture industry on a range of measures

which might be implemented to improve the structure and viability of farm

businesses in Northern Ireland.

1.8 The Committee, at a meeting held on 26 March 1998, agreed to prepare a

report which would address the inter-related topics of Agenda 2000, the

encouragement of young people into farming and the introduction of a

retirement scheme in Northern Ireland.

3

1.9 On 30 March 1998, the European Union Council of Agriculture Ministers

met and debated the CAP Reform proposals announced on 18 March 1998

- and rejected them.

1.10 The Committee wishes to express its gratitude to all those individuals and

bodies who assisted the Committee in the preparation of this Report.

4

2. AGENDA 2000 -

FOR A STRONGER AND WIDER UNION

THE PROPOSALS

2.1 Agenda 2000, the European Commission's detailed strategy for

strengthening and widening the European Union in the early years of the

21st century, was presented to the European Parliament by President

Jacques Santer on 16 July 1997. The document assesses the preparedness

of the 10 applicant countries from Central and Eastern Europe and

indicates that negotiations will be opened with some of these countries in

1998 with the first accessions occurring in 2001 or 2003.

2.2 Agenda 2000 indicates that enlargement will entail substantial additional

costs for the existing 15 members of the European Union - although it is

likely that these costs will be spread over a lengthy period of time. The

Commission pointed out that there will be no need to raise the current

expenditure ceiling of 1.27% of Member States gross national product.

2.3 The three stated challenges posed by Agenda 2000 are as follows:

- how to strengthen and reform the Union's policies so that they can deal

with enlargement and deliver sustainable growth, higher employment

and improved living conditions for Europe's citizens;

- how to negotiate enlargement while at the same time vigorously

preparing all applicant countries for the moment of accession;

5

- how to finance enlargement, the advance preparations and the

development of the Union's internal policies.

2.4 The Agenda 2000 document is some 300 pages long and contains a

detailed exposition of the European Commission's proposals. A shortened

version is attached at Annex D. While the document addresses a large

number of issues which will affect the agriculture industry in Northern

Ireland - there are some which are of particular interest:

- the proposal for the reduction of the seven Objectives (comprehensive

programmes for regions which are lagging behind) to three;

- the introduction of stricter enforcement of the qualifying criterion for

Objective 1 status - ie that a region's per capita gross domestic product

must be below 75% of the European Union Average;

- further reform of the CAP, the main producers affected being cereals,

beef and milk;

- a more prominent role for agri-environmental measures, eg organic

farming and maintenance of semi-natural habitats.

The Objectives

2.5 As mentioned earlier, it is planned to reduce the number of Objectives

from seven to three, ie two regional Objectives and one horizontal

Objective devoted to human resources. It is foreseen that by 2006,

6

Objective 1 and 2 areas will cover between 35% and 40% of the Union

population, against 51% currently.

The Future Objectives

Objective 1

2.6 For those less developed regions which are eligible, a strict

application is proposed of the GDP criterion by which assistance

will only go to regions whose per capita GDP is less than 75% of

the Union average. While levels of support will reflect population

size, the gap between regional wealth and Union average, and

national wealth, additional support will be granted to regions with

very high unemployment. A phasing out mechanism will be

developed for those regions currently eligible under Objective 1

which come out above the 75% threshold.

Objective 2

2.7 All regions faced with major economic and social restructuring

needs will be covered by a new Objective 2 classification - this will

include areas affected by change in the industrial, service or

fisheries sectors, rural areas in serious decline because of lack of

economic diversification and urban districts in difficulty because of

a loss of economic activities.

7

Objective 3

2.8 This classification will apply to regions not covered by Objectives 1

and 2 and will promote activity in four areas - economic and social

change, education and training systems, active labour market

policies to fight unemployment and combating social exclusion.

CAP Reform Proposals

2.9 On 18 March 1998, Mr Santer unveiled the European Commission's plans

to revolutionise farm policy and to impose drastic cuts on regional aid.

Many of the proposals were contained in the July 1997 package.

Mr Santer indicated that over the next year, negotiations with Ministers

and Heads of Governments would be tough as all would be reluctant to

make sacrifices, despite their commitment to EU expansion. The details

of the EC's initial proposals are summarised in the following paragraphs.

Cereals

2.10 The proposal is that the intervention price will be reduced by 20%

in one step in the year 2000. This will be offset with direct

compensation payments which will be increased from 54 ECU to

66 ECU per ton. Continued set-aside will be available but it will be

set at a zero rate. Voluntary set-aside will be maintained at the

same level of support as at present and will be guaranteed for a five

year period.

8

Beef

2.11 A cursory examination of the Agenda 2000 proposals for the Beef

and Dairy sectors confirms the EU Commission's intention to bring

commodity prices down to world levels. In the Beef sector, support

will be reduced by 30% in three equal steps commencing on 1 July

2000 and from 1 July 2002 the present intervention system will be

replaced by a private storage regime. To compensate for this

suckler cow and beef premiums will be increased, and a new direct

payment will be introduced for dairy cows. Member States will be

afforded flexibility which will allow them to allocate part of the

increase in direct payments (the "National Envelope") to their own

particular priority which will allow them if they so decide, to

include premium for heifers. The direct support will still remain as

outlined in the original Agenda 2000 proposals, but will be

sub-divided into a community wide basic payment. The basic

payment levels (2002) will be as follows:-

Bulls - 220 ECU

Steers - 170 ECU

Suckler Cows - 180 ECU

Dairy Cows - 35 ECU

2.12 These basic levels conform to pre-reform levels plus a 50% increase

in total premium. When all resources are assessed with basic

premiums and top-up the final level of payment could be as high as

310 ECU for bulls (on a one payment principle) with 232 ECU for

steers (paid twice as at present). The top premium for suckler cows

9

could be as high as 215 ECU per year, with dairy cows getting a top

of 70 ECU per head.

2.13 It is also proposed to maintain the Deseasonalisation Scheme at

similar levels but the calf processing scheme will be abolished. The

total number of animals qualifying for special suckler cow premium

will be limited to two livestock units per hectare. However,

producers with less than 1.4 LU per hectare and practising

extensive production methods (animals grazing on pasture land)

may qualify for an additional payment of 100 ECU per premium

granted. It is not yet clear that if heifers receive premium they will

become part of the calculation of the livestock units for each farm.

Milk

2.14 The price of intervention butter and skim milk will be reduced by

5% in four different steps and the amount of direct support to each

producer will be based on the number of premium units which will

be determined by dividing individual reference quantity by the

average community milk yield of 5800 litres per cow. This is

designed to target support for the producer who has leased quota.

Milk Quotas will be maintained until 31 March 2006, with an

overall increase of 2% in each national quota's total reference

quantity in four different steps which will then be distributed to

particular categories of producers who need special support.

10

Rural Development

2.15 Support will be given to areas such as investment in agricultural

holding, training of young farmers, the early retirement scheme

(with extra support in less favoured areas), agri-environmental

activities, further support for processing, marketing, forestry and

other related areas. The proposed support is designed to assist

farmers to diversify and adapt to change and bring together for the

first time all measures relating to the countryside which were

supported by the EAGGF and is designed to complement the

proposed reform in market and price policy. These proposals are

said to allow greater flexibility and local control. Current eligibility

criteria for support in less favoured areas will be modified to create

environmental controls in rural development policy.

Modulation

2.16 Member States may be allowed in certain circumstances to

modulate direct support per farm within certain criteria relative to

employment on each farm. To avoid excessive payments to one

farm, it is proposed to implement a digressive overall ceiling on

direct payments between 100,000 ECU and 200,000 ECU which

will have a 20% reduction and a 25% reduction above that amount.

2.17 The Committee notes that these proposals announced on 18 March were

debated by the European Union Agriculture Council of Ministers on 30

March and were rejected. The Agriculture Ministers agreed only that the

Agenda 2000 proposals to reduce price support and production subsidies,

11

replacing them with compensation payments and environmental incentives

by the Millennium, would not work.

2.18 At the Council of Ministers' meeting, the UK representatives welcomed

the proposals as a good basis for negotiation, but condemned a key

element to put a ceiling on direct aid payments which would hit some of

Britain's largest producers.

2.19 It is clear that the EU Agriculture Commissioner must now return to the

drawing board and amend his proposals. More than a year of negotiations

and debate lie ahead.

12

3. THE UK ATTITUDE TO AGENDA 2000

3.1 The Agriculture Minister, Dr Jack Cunningham in November 1997 stated:

"The European Commission's proposals in the 'Agenda 2000' document,

for an integrated rural policy which combines economic development and

a sustainable environment, point reform of the Common Agricultural

Policy in the right direction, and I welcome them."

He went on to say:

"Reform of the CAP is in everyone's interest, including farmers. The CAP

as it is presently constructed is unsustainable - especially as we face the

prospect of a further round of WTO negotiations and enlargement of the

EU. I want to establish a Community framework that encourages farmers

and other rural entrepreneurs to be more competitive so as to create wealth

and provide jobs in rural areas whilst preserving and enhancing our

countryside ........ We must focus on two areas. Firstly, replacing

production support with rural development measures that will enable those

living and working in the countryside to adapt to changing circumstances

whether within or outside farming. Secondly, environmental measures to

maintain and enhance our countryside."

All these measures may be geared to ensuring that the Agenda 2000

proposals are given a fair wind by the USA at the WTO negotiations in

1998.

13

3.2 At the Oxford Farming Conference held in early January 1998,

Dr Cunningham, in his first major policy speech to a farming audience,

underlined his opposition to modulation, describing it as 'perverse

nonsense' and pledging UK opposition to its introduction as part of CAP

reform. He confirmed that even if it were applied at Member State level,

as the Commission planned, he would still have major concerns about the

concept.

14

4. NORTHERN IRELAND AND AGENDA 2000

Objective 1 Status

4.1 The radical changes in regional funding brought about by the admission of

new Members, many from Eastern Europe will mean that the total funding

for the existing 15 Member States will be reduced - at 1997 prices the

structural operations budget for existing Members is forecast as follows:

1999 - 34.3 bn ECU

2000 - 34.2 bn ECU

2002 - 34.2 bn ECU

2004 - 32.1 bn ECU

2006 - 31.2 bn ECU

4.2 This means that the amounts available to Northern Ireland will become

smaller, and in view of the changes in relative prosperity within the 15

Member States, Northern Ireland will no longer be in the most needy

category.

4.3 While 65% of the structural funds will go to Objective 1 regions, 35% will

go to newly defined Objective 2 regions, including Northern Ireland.

Northern Ireland will therefore be in competition with a much larger

number of regions for what will clearly be a much smaller sum of money.

However, in the early years of change, it would appear that Northern

Ireland, among others, may benefit from a transition formula which will

phase the change.

15

4.4 Northern Ireland is at risk of losing European Union status as an

Objective 1 region - ie a region which attracts the highest allocation of

funds from the European Regional Development Fund, the European

Social Fund and the Agriculture Guidance Funds. In 1994, Northern

Ireland was granted a special concession, as it had been in earlier

negotiations, to remain as an Objective 1 Area.

4.5 On this occasion, it is envisaged that Northern Ireland may not be able to

meet the more stringently applied rules for the achievement of Objective 1

status. The draft proposals indicate that:

"The current Objective 1 areas that no longer qualify for the list will

have their assistance phased out gradually. It will end on

31 December 2005 for the ERDF but will be extended to

31 December 2006 for those areas that meet the eligibility criteria for

Objective 2."

4.6 Commentators have suggested that an assault on the Commission and the

Council of Ministers which simply argues that the regulations and

decisions are unfair is a poor tactic. The argument, it is said, is likely to

be rejected as an unjustified form of special pleading. Other alternatives

have been suggested, including the fragmenting of Northern Ireland into

areas, some of which will qualify for Objective 1 status.

4.7 In any case the EU proposals are just that - proposals, and therefore

capable of negotiation. The Committee recommends that Northern

Ireland elected representatives, farming unions and agriculture industry

16

representatives should press for the retention of Objective 1 status for

Northern Ireland.

Cap Reform

4.8 Having examined the proposals for CAP Reform announced by the

European Commission on 18 March 1998, the Committee shares the

attitude of the European Union Council of Agriculture Ministers which

totally rejected the proposals at a meeting held on 30 March 1998.

However, the Committee comments on the proposals (which are set out in

Section 2 of this Report) in the following paragraphs.

4.9 In general, the Committee considers that within the CAP Reform

proposals the compensation levels stated will not offset the projected fall

in farming income in Northern Ireland. In any re-examination of the CAP

Reform proposals, the Committee recommends that the European

Commission should amend the proposals and provide for full

compensation to meet the projected fall in farming incomes.

4.10 With regard to cereals, the Committee shares the view of the Ulster

Farmers' Union that voluntary set-aside should be retained, and that with

regard to modulation, it is essential that producers in Northern Ireland are

not disadvantaged. The Committee commends the Union's Seeds and

Cereals Policy set out in its letter dated 17 December 1997.

4.11 Within the proposal for the Beef sector, the Committee supports the plans

to afford flexibility to Member States, flexibility which will allow them to

17

allocate part of the increase in direct payments (the National Envelope) to

their own particular priority which will allow them, if they so decide, to

include premium for heifers. The Committee recommends that the

Government should as part of any negotiated CAP Reform agreement,

introduce a Beef Heifer premium.

4.12 Within the Milk Sector, the Committee notes and supports the proposal to

maintain Milk Quota until 31 March 2006. As part of any negotiated CAP

Reform agreement, the Committee recommends that the Government

should seek to ensure that an allocation of Milk Quota is made available to

enable new entrants to come into the dairy industry. This issue is also

addressed in Section 5.

4.13 The Committee is strongly of the opinion that Rural Development

proposals within CAP Reform are most important for Northern Ireland.

The provision of proposals which will enable Northern Ireland farmers to

diversify and adapt to change are addressed in Section 5 of this Report.

The Millennium Bug

4.14 In the course of discussion with the representatives of the Northern Ireland

Banking Association (NIBA) on Wednesday 4 February 1998, the

attention of the Committee was drawn to the effect which the New

Millennium will have on computers. The NIBA representatives pointed

out that many computer systems will be affected by the advent of the New

Millennium and that DANI should be listing those which will impact on

agriculture. Mr Michael of NIBA indicated that he had raised this

18

problem with DANI at the highest level, to be told that not enough staff

are available to convert all these systems between now and the New

Millennium and that while the vast majority of farmers will be unaffected,

others will be. He indicated that he would not want farmers to get it

wrong, and went on to say:

"They (DANI) consider it to be something that can be dealt with very

simply somewhere down the line; but that is not the case. The

Government will probably make more of an issue of this over the next

few months."

4.15 The Committee shares the view of the NIBA, and recommends that

DANI should take action now to ensure that farmers who use computer

systems are given the information needed to prepare for the New

Millennium. Further, the Committee is alarmed to hear that at a high level

in DANI, it has been indicated that not enough staff are available to

convert all the computer systems which impact on agriculture before the

New Millennium. The Committee places a great deal of importance on

this and therefore recommends that DANI should act now to ensure that

the necessary conversions are completed before the Millennium deadline.

19

5. MEASURES TO ASSIST FARMERS TO

DIVERSIFY AND ADAPT TO CHANGE

5.1 Within the Agenda 2000 proposals, the concept of rural development is to

be enhanced. It is proposed that support will be given to such things as

investment in agricultural holding, training for young farmers, the early

retirement scheme (with extra support in less favoured areas) and

agri-environmental activities. Further support will be given to marketing,

processing and forestry. All these proposals are geared to assist farmers

to diversify and adapt to change.

5.2 The Committee, having examined the proposals for CAP Reform, wishes

to see measures taken to ensure that the Northern Ireland agriculture

industry is well prepared for the changes which will occur in the New

Millennium. Some of these measures are addressed in the following

paragraphs. In making its recommendations within this section of the

report, the Committee acknowledges that at this stage, the CAP proposals

made under the Agenda 2000 heading have yet to be agreed by EU

Agriculture Ministers, must be acceptable as part of the World Trade

Organisation negotiations in 1999, and are therefore open to negotiation

and change.

Early Retirement from Farming

5.3 A scheme of Early Retirement from Farming is one of the accompanying

measures to the CAP Reform agreed in May 1992. Under Council

Regulation (EEC) No 2079/92, Member States may institute a community

20

aid scheme for early retirement from farming, jointly funded by the

European Union and the National Exchequer.

5.4 While not mandatory, early retirement schemes have been implemented by

many European Union countries including Belgium, Denmark, Germany,

Greece, Ireland, Italy and Spain. However the UK Government has not

implemented a Scheme, as it was sensitive to the fact that any European

Union contribution to the funding of such a scheme would reduce the

amount of rebate paid back to the United Kingdom by the European Union

(the Fontainbleau Agreement).

5.5 On 6 June 1997 after the General Election, the Chairman of the

Agriculture and Fisheries Committee of the Forum announced to the

Northern Ireland Forum that the Committee had expressed concern about

young people in rural areas opting for careers outside farming and that the

Committee had therefore decided to take evidence from the farming

community and other interested persons and bodies on this issue. The

Chairman also indicated that at an early date the Committee would explore

the merits of a farm retirement scheme - a method of helping young people

on to the land.

5.6 Since 1992 there has been pressure from the Ulster Farmers' Union, Local

Authorities, MPs and MEPs for the introduction of an early retirement

scheme in Northern Ireland. The Ulster Farmers' Union in particular have

pressed successive Ministers and in 1996 submitted proposals for a

regional scheme, allowed under the Commission Regulation. On

17 June 1997, Lord Dubs, Northern Ireland Minister for Agriculture and

the Environment wrote to the Union indicating that the Scheme was not

21

affordable and that funds would not become available until a lower priority

area which could be sacrificed could be identified.

5.7 Evidence on this topic was sought from a wide range of interests and

minutes of oral evidence and copies of written evidence received are

attached at Annexes C and D.

5.8 In August 1997, the Committee appointed CAPITA, a consultancy firm to

research the background to the early retirement schemes operated within

the European Union and to develop a workable scheme for Northern

Ireland farmers. The company made a presentation to the Committee on

13 October 1997 (see Annex D) which identified the main problem to be

the cost of implementation, which would have to be found from within the

financial resources available to DANI. Having taken evidence from DANI

representatives who had indicated that the benefits accruing from a

retirement scheme in Northern Ireland would not justify the cost (£56m),

the Committee asked CAPITA to meet with DANI and to assess the

situation prior to moving to the second stage of the consultancy operation -

the development of an early retirement scheme for Northern Ireland.

Following this meeting, it was clear that DANI was not disposed to find

the necessary money - other priorities taking precedence - and the

Committee reluctantly decided not to proceed any further with the

consultancy exercise.

5.9 It was therefore with some surprise that the Committee noted the

announcement made by Dr Cunningham on 22 December 1997 regarding

the Government's intention to open early consultations with the farming

industry regarding restructuring of the beef sector. Dr Cunningham

22

undertook to explore with interested parties whether the European Union's

early retirement scheme and other structural measures would play a part in

assisting the process of change and achieving the Government's long term

objectives.

DANI Consultation Paper on Early Retirement

5.10 On 18 March 1998, DANI wrote to a number of interested bodies (see

Annex D) inviting comments on a range of measures which might be

drawn up to improve the structure and vitality of farm businesses. It is

pointed out by DANI that the consultation exercise is without commitment

as to which of the measures addressed might be implemented, and that the

Government will have to take into account CAP reform developments

following publication of the Agenda 2000 proposals.

5.11 The DANI consultation paper seeks comment on the following:

- should an early retirement scheme be extended beyond the sheep and

beef sectors?

- would specific conditions regarding size or geographic location of

farms be appropriate?

- for how long should the scheme be open?

- are there any disadvantages to the lump sum scheme?

- any other issues?

23

Sector Coverage/Geographic Coverage/Size of Farm

5.12 It is clear that the Government wishes to see restructuring in the

beef industry, and it is therefore a foregone conclusion that the beef

sector will be included in any scheme. The DANI paper also points

to the sheep sector and indicates that many of the most vulnerable

beef and sheep farms are found in designated disadvantaged areas.

In addition the Committee notes that under the Agenda 2000 CAP

reform proposals, extra support will be made available under the

early retirement scheme to farmers in less favoured areas. The view

of the Young Farmers' Clubs of Ulster was that eligible applicants

should be accepted regardless of farm type or geographical location.

5.13 The Committee therefore recommends that any early retirement

scheme for farmers should regardless of size of farm or

geographical area, be open to all farmers in all sectors of the

industry. In deciding other eligibility criteria, the Committee also

recommends that the Government should take account of best

practice and experience gained in the European Union countries

where an early retirement scheme has been introduced.

5.14 The Committee recommends that any retirement scheme should be

open for a period of five years to enable farmers to plan for the

future and to remove any rush to make decisions.

24

Aid

5.15 The Committee recommends that aid payments should be in the

form of lump sums only, rather than drip-feeding the aid. Such an

arrangement, while administratively convenient, will provide

farmers with a sum sufficient for investment.

Structural Funds

5.16 The Committee notes that Dr Cunningham announced that the

Government would explore "other EU structural measures" in the

context of restructuring, and that DANI points out that this is not

appropriate for Northern Ireland as Structural Funds are fully

committed up to the end of 1999, when new funding will be

negotiated. This situation concerns the Committee, because of the

possibility of Northern Ireland farmers being treated differently to

their counterparts in other areas of the UK. The Committee

therefore recommends that in introducing an early retirement

scheme, the Government should ensure that any arrangements are

applied equally throughout the United Kingdom. If this proves

impossible because of commitment of Structural Funds, the

Committee recommends that the Government should defer the

introduction of any early retirement scheme until the necessary

Structural Funds are available across the United Kingdom.

25

Balance

5.17 The Committee considers that support for the agriculture industry

must not only be addressed from the economic standpoint. While

farmers maintain the environmental beauty of the countryside, the

population at large and tourists enjoy the countryside. It is

therefore important that shortcomings in the agricultural industry

must be addressed in the light of the economic and social benefits to

be gained by the farmers, however attention must also be directed

towards the environmental benefits and the benefits to the country

as a whole of maintaining our farmers in the countryside and on the

land. The Committee therefore recommends that in developing an

early retirement scheme, the Government should take account not

only of economic issues but also of social and environmental issues.

Agri-Environmental Issues

5.18 The European Union has indicated that agri-environmental activities

will be given additional support and DANI seeks comments on this.

The Committee has given much thought to this particular issue and

therefore recommends that farmers should be offered an

"environmental audit" under which the farm would be visited by

DANI and a report prepared identifying environmental problems

needing attention. The Committee further recommends that

grant-aid should be provided to enable the farmer to undertake

necessary work identified in the environmental audit. In addition to

this, the Committee recommends that consideration should be

26

given to the creation of schemes which would address the following

environmental farming areas:

- hedgerow retention and planting;

- repair and restoration of old/traditional farm buildings;

- tree planting.

Legal and Taxation Problems

5.19 With regard to succession on farms in Northern Ireland, there is a

strong patrimonial concept which entails the equal division of

agricultural property. In addition, there is also the fear on handing

over the property to a son and daughter that divorce could lead to

the break up or loss of a farm which has been in the family for

generations. In its evidence to the Committee, the representatives

of the Young Farmers' Clubs of Ulster stressed the need for careful

consideration of the financial issues and of legal hurdles which

would hinder uptake of the scheme. These issues were also

highlighted by CAPITA in their presentation to the Committee -

particular mention being made of Capital Gains Tax and Inheritance

Tax, and also of the problems posed by Land Tenure Law. In its

paper 'Young Farmers and the Problem of Succession in European

Agriculture' (COM(96)398), the European Commission highlights

the problems of inheritance law and suggests that where other heirs

have to be compensated, it would be preferable if this compensation

could be paid over several years in order to ensure continuity of

farming without shortage of finance, or to prevent the young person

actually giving up the farm. With regard to taxation, the paper also

27

suggests that Member States look into the possibility of granting

exemptions or tax reductions on the transfer of farms, pointing out

that the survival of a larger number of enterprises means fewer

businesses and jobs lost and a source of tax receipts and social

security contributions preserved. Legal forms of partnership are

also suggested to make it possible for the parent farmer to involve

the intended successor in the management of the family farm. The

Committee therefore recommends that the Government should,

before implementing an early retirement scheme, address the legal

and taxation problems which will affect both parent farmers and

successors to make the scheme a viable and attractive proposition.

Transfer of Production Quotas and Arable Aid

5.20 The Committee identified at an early stage in the taking of evidence

that there was a need in any early retirement scheme, to make

provision for successors to have access to production quotas. If

such arrangements are not made, the Committee is convinced that

successor farmers will be unable to achieve viability. In discussion

with Dr Stewart of United Dairy Farmers the Committee canvassed

the idea of a national reserve of milk quota which could be applied

to young people who wished to start up in dairy farming.

Dr Stewart was supportive of such a measure. The Young Farmers'

Clubs also supported the transfer of production quotas to successor

farmers to overcome a major entry barrier. The Young Farmers

suggested that the person transferring the quota or the right to

production should receive perhaps 50% of the market value of the

quota to encourage him to transfer it with the land. Such action

28

would in the view of the Young Farmers ensure that rather than

going on to the open market to an established farmer, the quota

would be taken over by the successor farmer. The Committee is

aware that certain quotas - eg suckler cow and sheep quotas, can be

transferred from farmer to farmer, however in such cases, it is

understood that a proportion of the quota is taken by the

Government for allocation to the national reserve. Such an

arrangement where a quota is being passed from father to son or

daughter as part of an early retirement scheme would be

unacceptable to the Committee. The Committee therefore

recommends that the Government should introduce measures to

provide successor farmers with full quotas or rights of production

to enable them to run a viable business. With regard to the transfer

of land registered for arable aid, the Committee, being aware of

difficulties within this scheme, recommends that the Government

should take action to widen the scope for the transfer of such aid

from one part of a holding to another.

The Conacre System

5.21 In an evidence session with the representatives of DANI on

9 October 1997, attention was drawn to the fact that an early

retirement scheme could have important side effects on land tenure

practice in Northern Ireland, particularly the conacre system. It was

pointed out that 225,000 hectares of land are available to rent under

this system to those who wish to expand their business, and that

under current market conditions conacre offers fewer risks to the

29

farmer than the longer term commitment of buying or leasing land.

It was also explained that the conacre system is a tradition in

Northern Ireland and is widely used by older farmers as a means of

securing an income without having to sell off the family farm or

land. In the event of an early retirement scheme being introduced,

the Committee recommends that DANI should take whatever

action is necessary to ensure that the conacre system of leasing is

enabled to continue.

Holistic Approach

5.22 The Committee considers that if the agriculture industry in Northern

Ireland is to have a future, an injection of new blood is necessary.

The Committee is convinced that an early retirement scheme on its

own is not the answer. The Committee therefore recommends that

an holistic approach should be adopted which addresses:

- the provision of agricultural training and education;

- the provision of a retirement scheme for those who wish to use

it;

- the provision of financial assistance to the young farmer who

takes over the family farm, financial assistance which includes:

- capital and other grants for the development and

modernisation of the farm;

30

- setting up and investment aid;

- the provision of EU quotas where necessary as an aid to the

young farmer.

Nature of Scheme

5.23 The Committee acknowledges that the EU early retirement scheme

requires that land released as a result of the retirement must

normally be amalgamated with other land to produce a larger

holding, or if non-viable, go to non-agricultural use; the farm cannot

simply be transferred to another owner and then farmed as a

self-contained unit. Such an arrangement does not allow for family

farms to be taken over by young farmers. As the Agenda 2000

CAP reform proposals contain references to the early retirement

scheme, the Committee recommends that DANI should engage the

Government with a view to the negotiation of an early retirement

scheme which will reflect the requirements of Northern Ireland

where the age structure of farmers is particularly high, and permit

young people to take over viable holdings on the retirement of their

parents, without the requirement of expanding the farm size.

Diversification

5.24 The Committee notes that commentators have not only highlighted the

drift to part-time farming in Northern Ireland, but have also stressed that

part-time farming will become the norm in the New Millennium. In these

circumstances, there will be a move away from the land, particularly of

31

educated young people who wish to pursue lucrative careers outside

farming. It is for this reason that the Committee wishes to see recognition

of the need to encourage young people to remain in rural areas, and

therefore recommends that the Government should seek through the

European Union to foster diversification on farms - eg arts and crafts, bed

and breakfast accommodation, home-based businesses, the provision of

renewable energy through the growing of willow biomass etc. Renewable

energy is a topic on which the Committee hopes shortly to complete a

Report for adoption by the Forum. The Committee further recommends

that the Government should provide grant-aid schemes where necessary to

assist diversification in rural areas and to keep the rural community in the

countryside. Further recommendations under the heading of Planning and

Education and Training are made later in this Report, recommendations

which, if implemented, will assist diversification.

Education and Training

5.25 The primary aim of the Agri-Food Development Service, which includes

the DANI Colleges is to improve the economic performance of the

agri-food sector by developing the competence of people engaged in the

industry. The Service works closely with the agriculture industry to

identify the necessary education and training needs and to deliver courses

and programmes to meet these needs.

5.26 Greenmount, Enniskillen and Loughry Colleges provide a wide range of

full-time, part-time and short courses in agriculture, horticulture, equine

studies, food technology and communication for people entering and

32

already in the industry. Full-time courses are provided at the main

campuses while part-time and short courses are provided at out centres

across Northern Ireland, as well as at the main campuses.

5.27 The Colleges vigorously promote their courses through schools, local

offices of the Training and Employment Agency, Departmental Advisory

staff and other contacts. Quality promotional materials are widely

distributed and extensive press publicity is regularly secured.

5.28 A counselling and careers advice service is provided to help people

choose appropriate courses and secure employment in the industry.

5.29 The Colleges have been successful in recruiting increased numbers of

young people on to full-time and part-time courses leading to recognised

vocational qualifications. Other College programmes help mature farmers

and others working in the industry to develop competence and values

related to business management, countryside management, marketing and

the adoption of new technology.

5.30 A summary of the work being undertaken by the DANI Colleges to

encourage younger people to come into or stay in the Industry is set out at

Annex D which also contains details of Course provision and numbers of

students enrolled.

5.31 The Committee met with Mr Kirkpatrick and Mr Titterington of the

Agri-Food Development Service on 11 September 1997 during which the

operation of the Colleges, education, training and support to the industry

33

were discussed. The Minutes of Evidence of this meeting are included in

Annex C. The Committee found this meeting to be most informative.

5.32 In the course of this meeting, the Committee was invited to visit the

Agriculture Colleges and in due course visits to Greenmount (on

1 October 1997) and to Enniskillen (on 12 November 1997) took place.

The Committee was most impressed with the facilities available at the

Colleges, with the enthusiasm and expertise of the staff, and with the high

calibre of the students.

5.33 The Committee has noted that the Rural Development component of the

Agenda 2000 CAP proposals contains an indication that particular support

will be given to training for young farmers. The Committee, having

already addressed the need for an holistic approach to the encouragement

of young farmers, recommends that the Government should take

advantage of any financial support measures made available by the

European Union for the education and training of young farmers.

5.34 In addition, the Committee has noted the additional resources which have

been made available by the Government to the Health and Education

budgets in recent months. The Committee was alarmed to learn that the

Agricultural Colleges had not benefited from this policy decision. The

Committee was advised that if any increase in the allocation of financial

resources to the Agricultural Colleges was to be made, such an increase

would have to come from savings elsewhere in the DANI budget. The

Committee regards this situation as most unfair - agriculture education is

no different to other spheres of education. The Committee therefore

34

recommends that the Secretary of State should make the necessary

arrangements to ensure that Agricultural Colleges receive a fair share of

the additional resources being made available to education.

5.35 While the Committee is concerned to ensure that young people are

encouraged to remain on the land or to take up farming, and that they

receive the highest quality training and education to prepare them for the

future, the Committee is also aware of the need to provide programmes of

training for mature farmers and their families. Such programmes should

develop competence and values related to business management,

countryside management, marketing and new technology. The Committee

therefore recommends that additional resources should be allocated to

mature learning facilities at the Agricultural Colleges to enable the

provision of courses and training opportunities for mature farmers,

particularly in Information Technology. Further, the Committee

recommends that additional resources should be provided for courses for

farmers who wish to diversify their business.

Planning

5.36 In the course of its examination of the measures needed to assist young

people to stay on the land, the Committee identified that one of the

reasons for young people leaving the land was difficulty in obtaining

planning permission for dwellings. The Committee therefore invited the

Planning Service of the Department of the Environment to give evidence

on this topic. A copy of the Minutes of Evidence and of the Written

Evidence on this topic is attached at Annexes C and D.

35

5.37 The Chief Executive of the Planning Service, Mr Stewart, explained that

within the Service's Planning Strategy for Rural Northern Ireland, account

was taken of Northern Ireland's traditional and distinctive pattern of rural

settlement. It was explained that proposals for single dwellings in the

countryside constitute an important element of the Agency's development

control workload - some 2,500 to 3,000 new dwellings being approved

each year, representing 80% of all applications received for such

development. The Chief Executive also explained that in considering

proposals to build houses in the countryside, the Agency balances

community needs and aspirations with environmental concerns by seeking

to persuade developers to choose sites capable of absorbing a dwelling

satisfactorily and designs compatible with the rural scene.

5.38 The Committee noted that under the Planning Strategy for Rural Northern

Ireland, Policy Hou 9 - "Farmworkers' Houses" it states:

"Exceptionally, where a son or daughter of a farmer works mainly on

the farm holding, permission may also be granted for a new house,

even though it may not be strictly necessary on agriculture grounds for

a farmworker to live on the holding. In some cases, particularly where

the labour requirements of the farm are small, it will be appropriate for

the parent to seek permission for a dwelling house based on retirement

from farming ........

Farmers' sons and daughters who only work part-time in farming and

have their main employment elsewhere are unlikely to fulfil the

requirements of this policy."

36

5.39 The Committee questioned the Planning Service on this topic in some

detail and raised a number of other issues, including diversification, areas

of special control, increased man hours, area plans, environmental studies,

fee structure, radio masts.

5.40 The Committee sought some degree of flexibility from the Planning

Service representatives. The Committee Chairman pointed out:

"Our main concern is for those, particularly in the severely

disadvantaged areas, but not exclusively, who are perhaps farming

50 acres but who cannot afford to employ their son or daughter full

time. Despite the fact that that son or daughter is going to inherit the

farm and wants to remain in farming, he or she cannot remain on the

holding because of planning restrictions. Is it not slightly odd that you

can put up a 60ft cattle house without permission but cannot put up a

bungalow for your son or daughter who are not working full time

because the farm cannot justify two or one and a half full-time

workers? Is there not room for consideration where there is that

genuine need - and I stress the word genuine? Could the Planning

authorities not consider granting permission but enforcing where the

house was sited? In other words, what if a farmer, in order to prove

genuine need, sites the house in the farmyard or adjacent to an existing

house so that it is perfectly obvious that it is not going to be desirable

for resale? I know you have occupancy clauses which in themselves

cause problems. But if it is clear that a case is genuine and that a

house is sited in such a way that it fulfils the desire of the next

generation to stay on the holding or fulfils the need for them to be there

to help with calving or milking, is there not some way in which your

37

policy could be developed to be more flexible? Do you accept that

there is a need for more flexibility?"

5.41 In response, the Chief Executive of the Planning Service explained that

there does need to be flexibility. However he pointed to the fact that when

the Planning Service suggest that dwellings be integrated with a farmyard

this is not wanted. What is wanted, he said, is separate access (with

attendant roads and other problems) and some separation to ensure that

separate social activities are maintained.

5.42 The Committee did not receive any reassurance that the Planning Service

will, in future, be any more tolerant of planning applications from farmers

or their sons and daughters for farm dwellings. If the proposal for an early

retirement scheme for farmers is implemented, it is possible that there will

be an increasing number of planning applications for permission to

construct dwelling houses on the farm for sons and daughters who will be

taking over the working of the farm. It will be essential in these

circumstances for the Planning Service to exhibit the flexibility needed to

meet this demand. The Committee therefore recommends that if the

Early Retirement Scheme which is being proposed is to succeed, and if the

need for diversification in rural areas (mentioned earlier in this Report) is

to be met, it will be necessary for the Planning Service to be more helpful

to young farmers or their parents seeking planning permission for a farm

dwelling.

38

6. SUMMARY OF RECOMMENDATIONS

NORTHERN IRELAND AND AGENDA 2000

6.1 The Committee calls on the Government to negotiate with the European

Union an Agenda 2000 package which recognises the peripherality of

Northern Ireland within the European Union, the particular problems

which therefore affect Northern Ireland farmers, and the importance to the

economy of Northern Ireland of its Agriculture Industry. In recognition of

the key importance of the Northern Ireland Agriculture Industry, and of

the need to ensure that it is best placed to meet the challenges of the New

Millennium, the Committee recommends that the Secretary of State for

Northern Ireland should without delay require the formation of an

interdepartmental small focus task force. This task force should be given

responsibility for the analysis of support mechanisms, local, national and

international which are, or may be made available, for progressing the

restructure of the agricultural industry and for making relevant

recommendations.

6.2 The Committee recommends that Northern Ireland elected

representatives, farming unions and agriculture industry representatives

should press for the retention of Objective 1 status for Northern Ireland.

(Paragraph 4.7)

6.3 In any re-examination of the CAP Reform proposals, the Committee

recommends that the European Commission should amend the proposals

39

and provide for full compensation to meet the projected fall in farming

incomes. (Paragraph 4.9)

6.4 The Committee recommends that the Government should as part of any

negotiated CAP Reform agreement, introduce a Beef Heifer Premium.

(Paragraph 4.11)

6.5 As part of any negotiated CAP Reform agreement, the Committee

recommends that the Government should seek to ensure that an allocation

of Milk Quota is made available to enable new entrants to come into the

dairy industry. (Paragraph 4.12)

6.6 The Committee recommends that DANI should take action now to ensure

that farmers who use computer systems are given the information needed

to prepare for the New Millennium. Further, the Committee is alarmed to

hear that at a high level in DANI, it has been indicated that not enough

staff are available to convert all the computer systems which impact on

agriculture before the New Millennium. The Committee places a great

deal of importance on this and therefore recommends that DANI should

act now to ensure that the necessary conversions are completed before the

Millennium deadline. (Paragraph 4.15)

EARLY RETIREMENT FROM FARMING

6.7 The Committee recommends that any early retirement scheme for farmers

should regardless of size of farm or geographical area be open to all

farmers in all sectors of the industry. In deciding other eligibility criteria,

40

the Committee also recommends that the Government should take

account of best practice and the experience gained in the European Union

countries where an early retirement scheme has been introduced.

(Paragraph 5.13)

6.8 The Committee recommends that any early retirement scheme for farmers

should be open for a period of five years to enable farmers to plan for the

future and to remove any rush to make decisions. (Paragraph 5.14)

6.9 The Committee recommends that aid payments should be in the form of

lump sums only, rather than drip-feeding the aid. (Paragraph 5.15)

6.10 The Committee recommends that in introducing an early retirement

scheme for farmers, the Government should ensure that any arrangements

are applied equally throughout the United Kingdom. If this proves

impossible because of commitment of Structural Funds, the Committee

recommends that the Government should defer the introduction of any

early retirement scheme until the necessary Structural Funds are available

across the United Kingdom. (Paragraph 5.16)

6.11 The Committee recommends that in developing an early retirement

scheme, the Government should take account not only of economic issues

but also of social and environmental issues. (Paragraph 5.17)

6.12 The Committee recommends that farmers should be offered an

'environmental audit' under which the farm would be visited by DANI and

a report prepared identifying environmental problems needing attention.

41

The Committee further recommends that grant-aid should be provided to

enable the farmer to undertake necessary work identified in the

'environmental audit'. In addition to this, the Committee recommends that

consideration should be given to the creation of schemes which would

address the following environmental farming areas:

- hedgerow retention and planting;

- repair and restoration of old/traditional farm buildings;

- tree planting. (Paragraph 5.18)

6.13 The Committee recommends that the Government should, before

implementing an early retirement scheme, address the legal and taxation

problems which will affect both parent farmers and successors to make the

scheme a viable and attractive proposition. (Paragraph 5.19)

6.14 The Committee recommends that the Government should introduce

measures to provide successor farmers with full quotas or rights of

production to enable them to run a viable business. With regard to the

transfer of land registered for arable aid, the Committee, being aware of

difficulties within this scheme, recommends that the Government should

take action to widen the scope for the transfer of such aid from one part of

a holding to another. (Paragraph 5.20)

6.15 In the event of an early retirement scheme being introduced, the

Committee recommends that DANI should take whatever action is

necessary to ensure that the conacre system of leasing is enabled to

continue. (Paragraph 5.21)

42

6.16 The Committee recommends that an holistic approach should be adopted

to the introduction of an early retirement scheme which addresses:

- the provision of agricultural training and education;

- the provision of a retirement scheme for those who wish to use it;

- the provision of financial assistance to the young farmer who takes

over the family farm, financial assistance which includes:

- capital and other grants for the development and modernisation of

the farm;

- setting up and investment aid;

- the provision of EU quotas where necessary as an aid to the young

farmer. (Paragraph 5.22)

6.17 The Committee recommends that DANI should engage the Government

with a view to the negotiation of an early retirement scheme which will

reflect the requirements of Northern Ireland where the age structure of

farmers is particularly high, and permit young people to take over viable

holdings on the retirement of their parents without the requirement of

expanding the farm size. (Paragraph 5.23)

6.18 The Committee recommends that the Government should seek to foster

diversification on farms - eg arts and crafts, bed and breakfast

43

accommodation, home-based businesses, the provision of renewable

energy through the growing of willow biomass etc. The Committee

further recommends that Government should provide grant aid schemes

where necessary to assist diversification in rural areas and to keep the

rural community in the countryside. (Paragraph 5.24)

EDUCATION AND TRAINING

6.19 The Committee, having already addressed the need for an holistic

approach to the encouragement of young farmers, recommends that the

Government should take advantage of any financial support measures

made available by the European Union for the education and training of

young farmers. (Paragraph 5.33)

6.20 The Committee recommends that the Secretary of State should make the

necessary arrangements to ensure that Agricultural Colleges receive a fair

share of the additional resources being made available to education.

(Paragraph 5.34)

6.21 The Committee recommends that additional resources should be allocated

to mature learning facilities at the Agricultural Colleges to enable the

provision of courses and training opportunities for mature farmers,

particularly in Information Technology. Further, the Committee

recommends that additional resources should be provided for courses for

farmers who wish to diversify their business. (Paragraph 5.35)

44

PLANNING

6.22 The Committee recommends that if the Early Retirement Scheme which

is being proposed is to succeed and if the need for diversification in rural

areas (mentioned earlier in this report) is to be met, it will be necessary for

the Planning Service to be more helpful to young farmers or their parents

seeking planning permission for a farm dwelling. (Paragraph 5.42)

45

ANNEX A

MEMBERSHIP OF

STANDING COMMITTEE D

(AGRICULTURE AND FISHERIES ISSUES)

46

Decisions yet to be taken

None

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