Set-aside

The set-aside is an agricultural instrument to control the amount of agricultural products on the market. It was introduced in the European Union ( EU) in the late 1980s under the Common Agricultural Policy ( CAP) in order to limit the former agricultural overproduction. As a result of increased demand for agricultural products, the set-aside in the EU was abolished in 2009.

History of set-aside in Europe

The set-aside (English set -aside ), with their introduction mainly cereal production in the EU should be limited, was first introduced in 1988/89 on a voluntary basis. After the McSharry reform of 1992, in which the land-related compensation was introduced, the set-aside was mandatory. Farmers covered by the scheme had a certain percentage of their land fallow set to receive direct payments. Such a closure rate of 15% has been set for the crop year 1993/94, which could be adapted to the market and price developments but annually. Excluded from the decommissioning obligations were so-called small producers whose production ground must not exceed a certain limit.

Initially, the rate of compulsory set aside was determined annually, in the marketing year 1999/2000 she was then set out to simplify permanently at 10 %. For the crop year 2004/ 05 it was reduced to 5%, then to be transferred in 2005 under the Luxembourg decisions in different regional set-aside rates. The implementation of the Luxembourg decisions and the reference surface was changed to determine the set-aside area. Formerly the grain and oilseed area used to calculate the individual farm -aside land has been established on the basis of the total arable land with the decisions of agrarian reform (Mid -Term Review) calculation. This results in the agricultural regions with high vegetable, potato and sugar beet share to a considerable extent of land set aside in the years 2005/06.

Various forms of set-aside

Economic, annual decommissioning

In the obligatory set-aside farmers must set aside part of their land, so they can get paid direct payments under the agricultural support. In crop year 2008, this was the first time exposed and was abolished for crop year 2009. In addition, farmers can voluntarily shut down in compliance with the cross compliance regulations surfaces, they must be received in proper condition. This means at least once yearly mulching and the grassland either just once yearly mulching or every two years, the shut-down of the crop for arable land after 15 June.

Long-term closure

Until 1996, there was the possibility of the closure of arable land for five years. Furthermore, there are many years of closure for environmental purposes or in connection with afforestation.

Surface development of the decommissioning

For surface development of decommissioning and the cultivation of renewable raw materials ( energy crops ) on set-aside land in Germany see illustration. In the EU in 2007 an area of ​​3.8 million ha was obligatory set-aside.

Cultivation of renewable raw materials on set-aside land

With the adoption of compulsory set-aside in 1992, was also established that may be grown on set-aside land Nawaro. Thus, the products of set-aside land are really only used in the non- food sector, the farmers had to provide a range of evidence ( reports, cultivation contracts, deposits, etc. ) at the Federal Agency for Agriculture and Food (BLE). This created substantial transaction costs. The decisions in the field of agrarian reform (Mid -Term Review) have confirmed the cultivation of renewable raw materials on set-aside land.

Abolition of compulsory set-aside

In 2007 the prices of agricultural commodities had risen massively. Reasons for this included the increased demand for cereals by the expansion of bioethanol production, but also the low inventories, crop failures and other reasons. Due to the strong increase in demand for cereals in 2007 and the consequent massive increase in the prices of agricultural commodities compulsory set-aside in the EU was suspended for 2008 first. As part of the Health Check (Health Check) of the common agricultural policy, it was finally abolished in the year 2009, and the related payment claims were converted to normal. Because of the high expected future agricultural prices is seen no more need to set aside more.

Thus, the farmers are not obliged to cultivate their land left fallow. The cross-compliance rules apply to these areas. At high agricultural price - level can be expected that only in marginal areas voluntary set-aside is operated. Thus, the European Commission reckoned that after the abolition of set-aside from 1.6 to 2.9 million hectares would be brought back into production. In Germany in 2008 halved the set-aside area.

Habitat Fallow Land

Purpose of set-aside is the market- relieving reduction of food and feed production. However, the arrangements established by this regulation Habitat Fallow Land also showed a number of environmental benefits for the environment. With many years of closure may occur, for example, to a relief of ecosystems by reducing the discharges of fertilizers and pesticides. Also can make new ( more extensive ) habitats on the multi-annual set-aside ( fallow ). Unless plants are sown, initially mostly develop annual arable weeds and after a few years, species of ruderal prevail. In addition, the set-aside refuges for various wild animals form. After the abolition of set-aside, there are increased demands for alternative measures such as the establishment of ecological compensation areas as part of the EU 's agricultural policy. Partial already find other ecological measures, such as field margins program instead.

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