The reform of the Common Agricultural Policy (CAP) in June 2003 has reduced the environmental impact of agriculture. This has been achieved by removing an incentive to intensify production and requiring compliance with a range of environmental conditions (cross compliance) which will promote good environmental practice. These changes were implemented in January 2005. A monitoring observatory, the Agriculture Change and Environment Observatory, has been set up and will report on changes to farming practice as a result of CAP reform.
This is a devolved matter. In England, the Department supports farmers to change their farming methods to conserve biodiversity through the Environmental Stewardship (ES) scheme.
In England, over 3.8 million hectares are now covered by ES agreements, with first year payments of more than £142 million already made. We are well on target for achieving 60 per cent. of agricultural land to be covered by ES agreements by next year.
The Higher Level Stewardship scheme will provide additional benefits, particularly for biodiversity action plan priority habitats and species, via a more intensive, but carefully targeted, approach to habitat management.