Zero per cent set-aside for 2008

By Andy Doyle

The European Commission has formally proposed to set the obligatory set-aside rate at zero percent for autumn 2007 and spring 2008 plantings. The Commission says that this is in response to the increasingly tight situation on the cereals market.

The announcement is part of the formality involved following the stated intention of Commissioner Fischer Boel announced last July.

A lower than expected EU-27 harvest, coupled with very low intervention stocks, has helped drive grain prices to historically high levels around the world this harvest. Intervention stocks decreased from 14 million tonnes at the beginning of 2006/2007 to around one million tonnes at the moment. The Commission estimates that removing set-aside (3.8 million hectares) will increase grain output by at least 10 million tonnes next harvest.

If set-aside is set at zero per cent, farmers can still leave land idle or fallow if they wish.

Commissioner Fischer Boel said: "A poor 2008 harvest, combined with 10% set-aside, would expose the internal market to potentially serious risks. Looking further ahead, in the 'Health Check', I want to take a good look at whether set-aside is still an appropriate tool. But I also want to ensure that we retain the environmental benefits it has brought.''