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Page last updated at 12:13 GMT, Wednesday, 25 June 2008 13:13 UK

Hill farmers hit by subsidy cuts

Exmoor
Upland farmers rely on subsidies

Hill farming on Bodmin Moor and in other upland parts of the South West faces a bleak and uncertain future, according to a new study.

The report was commissioned from Exeter University by the Duchy of Cornwall and the National Park Authorities for Exmoor and Dartmoor.

It says the projected cutback in public subsidy in the next few years will have drastic consequences for farm incomes.

Traditional landscapes could also be affected if farmers leave the land.

The report looks at projected changes to the Single Payment Scheme (SPS), the European Union's principal agricultural subsidy scheme.

They're stuck between a rock and a hard place
Martin Howlett, NFU
Until 2004, sheep farmers received a subsidy for each animal but since then, farmers in England have received a subsidy based on the area of land they farm.

This is annually reducing until by 2012 there will be a flat rate subsidy of £160 per hectare.

Martin Turner, who led the research, said: "Our projections show that the average hill farmer will lose about a third of their income purely as result of changes in government support over the next five years.

"Some of the remote cattle and sheep farms may lose two thirds of their income."

He said that as a result farms will be abandoned in South West England.

The National Farmers' Union (NFU) has welcomed the changes to the SPS which encourages farmers to diversify, but says that changes should allow for hill farmers who cannot.

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Martin Howlett, chair of the NFU in Cornwall, said: "Many farmers including myself have been able to diversify our farm businesses into tourism and other activities.

"When you are on the moor you can do nothing else.

"If you're a livestock farmer, you can't suddenly become an arable farmer because the land does not lend itself to that.

"They're stuck between a rock and a hard place."

He added: "Hill farmers have a vital role in grazing the moor and the society should recognise their role on the environment.

"Most people in Devon and Cornwall rely on water from a clean and healthy moor.

"Tourism is also a major industry and the backdrop of Bodmin and Exmoor are important to the tourism sector."


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29 Mar 07 |  UK Politics

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