A6 LFA annex.pdf - Agra CEAS Consulting

More documents

Recommendations

Info

MID-TERM EVALUATION OF THE RDP WALESTable A6.9: Question 1 summary resultsCriteria Indicator Results1. The income deficit due tonatural handicaps orenvironmental restrictions isoffset by compensatoryallowances or payments.1.1 Ratio of (premium) to (higherproduction costs + reductionin value of farm output).1.2 Share of holdings wherepremium is:a) 90% of (higherproduction costs +decreasing value of farmoutput (%).• There is no evidence to suggestthat the ratio exceeds 1. Theconclusion is therefore thatpremiums are lower than anycombined higher productioncosts/lower value output.• Because the magnitude of higherproduction costs/reduction invalue of output is not known(and in any case is likely to varyacross the LFA), it is notpossible to actually constructthis ratio.• However, farmers believe thatTir Mynydd payments are crucialto bolstering farm incomes andoffsetting natural handicapsparticularly in the light of recentlow income levels, the foot andmouth epidemic, etc. 82% offarmers think that Tir Mynyddpayments are very important(15% quite important) incompensating farmers fornatural handicaps.• There is no evidence for anyover-compensation through TirMynydd.• Because higher productioncosts/reduced output value areunknown this question cannotbe answered precisely.However, 62% of farmers in theLFA area reportedcompensation levels below 25%of total household income.• Only about 9% of farmersreported compensation levels ofbetween 51% and 100% of totalhousehold income (4% in theDA area; 12% in the SDA area).12
MID-TERM EVALUATION OF THE RDP WALESA6.5.2. Question 2. To what extent have compensatory allowances helped inensuring continued agricultural land use?A6.5.2.1. Evidence from secondary dataInformation from the Agricultural Census suggests that there has been little change between 2000and 2002 in the number of holdings within the LFA. In the DA part of the LFA numbers of holdingsdeclined by just 233 holdings, while in the SDA area the number of holdings actually increased by193. There is therefore a suggestion that holding size may have decreased slightly in the SDA areawhereas it may have increased slightly in the DA area. Overall these data suggest that Tir Mynyddmay have contributed (along with other support measures) to maintaining agricultural land use.This is corroborated by the number of approved claims under Tir Mynydd which did decline between2001 and 2002 (probably as a result of farm amalgamation), but since then have held firm (see TableA6.1).A6.5.2.2. Evidence from the surveyWhile the great majority (88%) of farms did not change their farmed area between 2000 and 2002,around one in ten farms increased the area farmed. Evidence from Assembly staff, however,suggested that many of these changes were relatively minor in terms of the land areas involved andso it is important not to read too much into them, particularly bearing in mind the short time periodinvolved. Nonetheless the data suggest an overall stability in holding size and a slight preponderanceof increases rather than decreases where there has been change. In both cases there is nosuggestion of land abandonment.Just under two thirds (60%) of all changes (both positive and negative) involved farmers renting moreland while a quarter of all changes involved land purchases. Some 11% of respondents consideredthat the Tir Mynydd payments had been a significant factor in causing any changes and theserespondents tended to be the younger farmers who were farming larger holdings and employing nonfamilylabour.Overall farmers in the LFA seem to think that Tir Mynydd has had an influence in encouragingfarming continuity. While only 7% of farmers thought that the scheme was the sole reason for themcontinuing to farm, along with other factors it was seen as a positive influence by over half (60%).The importance of Tir Mynydd in this respect declined with the age of the respondent with youngfarmers being especially positive about the scheme as an influence on their commitment.A6.5.2.3. Conclusions• By providing an income supplement to farmers in the LFA the compensatory allowances will havemade all farms more economically viable. For some farms this will mean the difference betweenleaving the sector and carrying on.13
Page 6 and 7: MID-TERM EVALUATION OF THE RDP WALE
Page 10: MID-TERM EVALUATION OF THE RDP WALE
Page 13: MID-TERM EVALUATION OF THE RDP WALE

A6 LFA annex.pdf - Agra CEAS Consulting

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?