Following the momentous events of the previous year, the early months of 2002 saw the winding down of the special controls introduced in 2001 to fight the Foot and Mouth threat. However, enhanced controls at points of entry into the country continue to remain in place. The publication, in March, of an independent economic evaluation of the
impact of FMD highlighted in very stark terms the extent of the threat, not only to the agriculture sector, but also to the economy in general posed by Foot and Mouth disease. Widespread outbreaks could have reduced GDP by ?.6 billion, or almost 6%. The enduring lesson is that continued vigilance and attention to biosecurity at farm level remains important.
2002 saw a slowdown in the international economy and was a difficult year for the farming sector as well. The year was marked in particular by adverse weather and difficult
market conditions, especially in the dairy sector.
I instigated a series of actions in response to these particular difficulties. These included:
■ obtaining EU agreement on a number of occasions to significantly strengthen market supports for dairy products and increased export refunds for beef, to
certain destinations;
■ securing EU approval to have the advance payments under the bovine premium schemes increased from 60% to 80%;
■ getting EU agreement to make an advance payment of 50% under the Arable Aid scheme on 16 October – one month ahead of the normal payment date;
■ negotiating the removal of the Russian county ban on beef exports;
■ securing EU agreement to allow the use of set-aside land for grazing/fodder;
■ changes to simplify the REPS application process, including investment by the Department of ?.3 million to
facilitate planner access to computerised mapping;
■ changes to reduce the paperwork for farmers in applying for the 2003 Extensification Premia.
