Cereal producers have called for set-aside to be scrapped as floods at home and severe droughts in other parts of Europe increase the prospect of more poor harvests this year.
World stocks are already at their lowest level for 30 years after disappointing world and EU harvests in 2006. And COPA-COGECA, the European farmers' organisation, is forecasting that the EU harvest will be down by a further six million tonnes which will mean a further cut in grain stocks.
COPA-COGECA wants this situation alleviated by setting the obligatory set-aside rate – currently ten per cent in Europe – at zero for the 2008 harvest. And it wants a decision announced in September so growers can plan their 2008 cropping accordingly.
NFU Vice President Paul Temple said: "We need set-aside at zero per cent across Europe. Not only will our farmers benefit but millers, maltsters and animal feed manufacturers are all in agreement.
"Obviously, some will stress the need to retain set-aside on environmental grounds. But all farmland is subject to cross compliance. Set-aside is a market management tool and has an incidental benefit to the environment, whereas environmental schemes in this country have a substantial and designed benefit."
COPA-COGECA has also stressed that recent grain price increases have had little to do with bioethanol production in the EU, which accounts for barely one per cent of the total crop.
