Press Release: Cereals: Commission proposes to set at zero the set-aside rate for autumn 2007 and spring 2008 sowings

The European Commission has proposed to set at 0% the obligatory set-aside rate for autumn 2007 and spring 2008 sowings, in response to the increasingly tight situation on the cereals market. In the EU-27, a lower than expected harvest in 2006 (265.5 million tonnes) led to tightening supplies at the end of marketing year 2006/2007 and to historically high prices. Intervention stocks have shrunk from 14 million tonnes at the beginning of 2006/2007 to around 1 million tonnes in September, mainly composed of maize held in Hungary. Reducing the set-aside rate from 10% to 0% is expected to increase output by at least 10 million tonnes. The future of the set-aside system will form part of the debate to be kicked off by the Communication on the CAP 'Health Check' in November 2007. This will also address the issue of how to retain the environmental benefits which set-aside has brought. Setting the rate at zero does not oblige farmers to cultivate all their land. They can continue with voluntary set-aside and apply environmental schemes.