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Competitiveness, Continuous Improvement and Learningpayments, whereby direct support is reduced on a phased basis from2006–2013. The payments will reward those farmers who have beenmost productive and are likely to be able to be transferred with orwithout the land.A significant consequence of the Fischler proposals is that a cleardistinction will become apparent between policies that address theeconomic well-being of commercial farming activity and policieswhich are targeted towards environmental, equity and socialconcerns. The Fischler proposals on decoupling of direct paymentsfrom production include proposals for an environmental audit offarms.The European Commission believes that the proposed adjustmentsin CAP policy measures will permit maximum flexibility inproduction decisions, will greatly simplify the means by whichsupport is provided to farmers while guaranteeing their incomestability and will promote sustainable farming practices (EuropeanCommission, 2003). The European Commission has carried out animpact assessment of the proposals. While the effect of theproposals varies depending upon individual circumstances, theCommission believes that, taking into account the effects of ruraldevelopment, farm income would be 0.3 per cent higher than underthe Agenda 2000 policies.The Minister for Agriculture has proposed that the EU Commissionshould undertake a comprehensive impact analysis of thedecoupling element of the Fischler proposals. He also recommended,as part of this analysis, that a full review of the farmincome situation within the EU be undertaken. The Councilsupports this proposal but wishes to see it extended to encompassthe food and agribusiness sectors. It also recommends that a similaranalysis be carried out on the Irish agricultural and food sector toinform the strategy that should be pursued by Ireland.Rural DevelopmentIn its 1999 Strategy the Council welcomed the broad approach torural development adopted in the rural development White Paper571