June deadline

Whilst the EC officials gallop towards their destiny, they have been fired upon by the batteries of every country, each with its own vested interest.

To decouple or not to decouple seems to be the major hurdle and, frankly, I am not sure where I stand on the issue.

On the one hand, the campaign for full decoupling led by the UK does have two major attractions:

We would at a stroke get rid of the plethora of schemes and regulations which currently stifle traditional farming activity.

In future, there would be a single area-based payment which would cut out a lot of the form-filling, inspections, cross-checking and endless argument with the Rural Payments Agency.

Because there would be no production-based subsidies, the industry would be free to react to market forces.

If it paid to produce lamb or lettuce, then this would be done; and if the profit went out of beef and borage, then these enterprises would be dropped.

On the other hand, if there is no link between the area payment and some form of obligation to produce off the land, then many farmers who only keep stock in order to attract subsidy will reconsider their options; and the most obvious choice would be to reduce numbers or go out of livestock altogether.

There are predictions that large upland farms could suffer an 80pc reduction in stock numbers when the production-based subsidy system is dismantled; and as almost two-thirds of our upland is covered with semi-natural rough grass, there can be no doubt that the traditional English landscape would change forever.

The team opposing decoupling is led by France and the now-wavering Germany which, at most, are prepared to look at partial decoupling, with some direct payments remaining for livestock. The arguments for and against this compromise appear to be broadly centred on the following arguments:

This solution could be the worst scrambled-egg package for the industry, increasing the number of different schemes to a frightening 13 in total. This is because of a lot of the existing headage schemes would have to stay in place, plus extra ones to link with the partially-decoupled regime.

On the other hand, there would be an incentive, and perhaps this is essential for farmers to keep livestock numbers at a level which will maintain the fabric of our countryside, especially in the upland areas.

I think I am gradually convincing myself that full decoupling must be the ultimate objective, as the prospect of ridding ourselves of regulation is too attractive; but there must be some provision for minimum numbers of livestock to be kept on grassland holdings, rather similar to the extensification rules at present.

Whatever decision is reached by our masters at the end of June, we on the ground will have to think very rapidly about our farming strategy for 2004

The Government has also dedicated the flaming month of June to the great national debate on the future of GM crops. Over the next two months, there will be six regional conferences, the first of which took place at Birmingham NEC on Tuesday.

The opponents of GM crops are already claiming that the debate is just for show, and that the Government has made its decision. But I suspect a lot of watery words will pass under the bridge before the final announcement at the end of the year.

Michael Meacher has raised one interesting reflection relative to our subjugation to European law; and that is that unless it can be proved that GM crops are a threat to the environment or human health, then the UK is powerless to ban them.

Because of the ongoing uncertainty over the mid-term review, the farmland market has been gently stagnating since the beginning of the year when it was announced that only an occupier during the qualifying years of 2000-2002 could claim the new single payment.

All sorts of clauses have been drafted for conveyances, surrenders and tenancy agreements to try to accommodate the possible alternatives to come out of the reforms, but the net result has nevertheless been to reduce the amount of activity in the land market.

According to Ben Gill, the European Commission is now close to agreeing that the person farming the land when the decoupled payment is introduced would be entitled to the full payment.

So, for example, someone who buys land this year would get its entitlement based upon the qualifying 2000-2002 base years despite the fact that he did not occupy them at the time.

Our grain correspondent, David Sheppard, has returned from holiday and reports on a fairly stagnant market.

Old-crop wheat has drifted downwards, marginally, as the export season comes to a close and domestic consumers have already got cover for June.

Whether prices recover again will depend on how early harvest will start this year, and much of the interest centres around the movement of the new-crop prices.

Some pundits are forecasting that farmers have already sold up to 40pc of the new-crop wheat, which is perhaps understandable given that prices are showing a significant increase over the past two seasons.

Whether this strategy proves to be the most lucrative, only time will tell, but there does seem to be very little downside looking in the crystal ball.

There is a smaller UK crop this year

A new EU import tariff will restrict cheap imports

Sterling is generally weak

The Ukraine and Russia will have a reduced crop.

There is definitely a further contraction in world wheat stocks.

On this evidence, only the weather can defeat the prospect of an improved market; and any claims for our erroneous projections should be addressed to the Meteorological Office.

Let us now praise two Yorkshire men of great achievement.

Last Friday, I went to the memorial mervice in York Minster for Jack Birch, who died at the age of 92, and who I seem to have known all my life.

Jack ran the family construction firm of William Birch and Sons, but he also had a great affinity for agriculture, farming himself at Elvington.

His achievements were legion, and it took four separate eulogies to cover his life's work.

Apart from the building side, he was a councillor for almost 40 years, including Lord Mayor in 1975; he spent 55 years on the Ouse and Derwent Drainage Board; 28 years as a JP and 40 years washing up at the pensioners annual party! Jack was a tax commissioner, on the university council and a governor of eight schools.

As I left the minster, I felt suitably humbled.

Another Yorkshire man who is still chalking up successes is Derrick Potter, who is one of three farming brothers from Baldersby near Thirsk.

Derrick has branched out into transport, and last Wednesday I went to witness Princess Anne officially opening the Selby Rail Terminal. With great foresight, Derrick has struck a blow to take freight off the roads and on to rail by providing a network of distribution centres into which the freight trains can come direct from our ports.

It has cost £12m of investment to create the Selby Terminal, and some of the buildings can house and unload a full 100-yard long train at one time.

It was a very special day for Derrick, and he has certainly come a long way in the transport industry since he started work with a Leeds coal merchant at £5 a week.

The Normandy Agricultural Society organised a competition to raise funds and the star prize was to be a horse. When the day for presentation of prizes arrived, no horse could be found, but one of the committee produced a donkey instead. The winner of the competition, a local restaurateur, appeared non-plused and was heard to remark to the judges: "It's all right, I think donkey tastes better anyway!"

Forward on Tuesday, June 3, were 86 cattle, including 25 bulls; 1,245 sheep, including 963 lambs, 236 ewes.

Steers, light to 103p/kilo from J Remmer, Pickering, heavy to 119p from D R Jackson, Carnaby (ave 98.06p).

Heifers, med to 127p from G I Marwood, Harome (106.9p), heavy to 130p from G I Marwood (94.5p).

Bulls, light to 98p from M Marshall, Pockley (96.25p), heavy to 112p from P M Allen, Great Barugh (95.6p), black and white bulls to 81p from P M Allen (86.5p).

Lambs, standard to 166p from R M Clarkson, Huggate Lodge (156p), med to 164.6p from T E Beevers, Cottam (152.84p), heavy to 154.7p from M D Medd, Sawdon (148.5p).

Hoggs, standard to 116.6p from Mrs Avison, Barton-le-Street (93.7p), med to 106.6p from J R Hicks, Cawton (94.01p), heavy to 90p/kilo from P Huntington, Brawby (71.4p), overweight to 82p from C Todd, Weaverthorpe (72.6p).

Ewes to £66 from W A Nicholson, Nafferton (£41.60).

Updated: 14:35 Wednesday, June 04, 2003