This report is the 15th edition in the series which provides data on the economic conditions of the UK agriculture industry. The Government will draw on this information when considering policy issues, including proposals by the European Commission in respect of the Common Agricultural Policy and the provision for agricultural support in 2003/04. The report covers: key events in 2002; farming income and agriculture in the economy; the structure of the industry; prices; commodities; accounts; productivity; subsidies; public expenditure on agriculture; and environmental issues.
This inquiry follows the announcement of the Government's Rural Strategy on 21 July 2004. It examines: the proposal to establish an integrated agency; the proposed streamlining of rural, agricultural and environmental funding; the delivery mechanisms including the underlying IT strategy; the extent to which the strategy incorporates the recommendations of Lord Haskins' rural delivery review. The conclusion is broadly supportive of the proposals, with the proviso that they are not a cover for cutting budgets and that the eventual benefits outweigh the disruption caused by change. There are recommendations for changes to the draft Natural Environment and Rural Communities Bill and the need for further scrutiny of the proposal to reform or abolish the levy boards, is also highlighted.
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