---

Agricultural Policy

As my right hon. Friend says, we do not want to increase food miles. There is a growing emphasis on the need to produce more food. Almost every day we read in the papers about the gap that is opening up between the number of people in the world and the amount of food available. The standard calorie requirement that is usually cited is, I think, 3,000 a day, although that might be something of an overestimate, but it is clear that a gap is opening up. Welsh farmers fear that the Commission’s proposals to take land out of production—the figure that I have seen is 7%—will make producing quality Welsh food even more difficult. Such land could be used productively while acknowledging the green agenda, so that needs to be considered. Farmers are key to securing our natural environment and often they do so just as a matter of good husbandry. They do that because they care for the land and, historically, they have looked after their farms for many generations. However, of course, they are also involved in a highly competitive business and there are constraints upon them. They are competing not just with businesses down the road, but with businesses all over Europe—and, in some cases, with businesses on the other side of the world. Welsh agriculture, and UK agriculture in general, are under particular pressure. I understand that the Commission proposed introducing a mandatory single payment scheme throughout Europe—the basic payment scheme. Payments in Wales are currently based on a historical payments rate, and a move to flat-rate, area-based payments is bound to result in substantial and unwelcome change. I understand that the Welsh Government say that only 17% of farmers will stay within 10% of their current entitlement. Some 48% will gain but 35% will lose out. In an industry that is clearly under pressure, that should worry us. As I said earlier, single farm payments account for about 80% of net farm incomes in Wales, so such a change will undoubtedly have profound effects on Welsh farming, with dairy farmers and intensive livestock producers being most badly affected. My hon. Friend the Member for Carmarthen East and Dinefwr hopes to address this point if he catches your eye, Mr Havard. We have pursued a two-pillar approach in Wales, with pillar one direct payments providing income supports for farmers because of market failure and pillar two measures being used to deliver green objectives. About 80% of Welsh land is classified as a less-favoured area, or an area with natural constraints, as that will be known from 2014. The worry is that if a small pot of money is spread over a large area, the scope for redressing the deficiency will be limited, thus putting farming in the less-favoured areas in an unsustainable position. We in Plaid argue that the interests of Welsh farming and British farming are not always congruent. We want Welsh farming to be represented directly and exclusively by a Welsh Minister. Given that that is not likely to happen immediately, it is vital in the meantime that the Welsh Government work closely with the UK Government to progress Welsh interests.