Farmers cry foul over sugar deal

Furious beet growers accused Defra's environment secretary Hilary Benn yesterday of "illegally" ripping up a compensation agreement for the industry.

Fenland farmer John Hoyles, who represents 4,900 sugar beet growers, was angered by Defra's "bombshell" to restart negotiations over plans to surrender 13.5pc of the national quota.

The National Farmers' Union may take legal action to challenge Defra's decision, said Mr Hoyles, who is chairman of the NFU's sugar board.

In return for giving up 165,000 tonnes of sugar quota as part of Europe's radical reforms of the sugar regime, growers had negotiated an industry-wide compensation package with payments expected from June 2009.

British Sugar, on behalf of the whole industry, submitted proposals to Defra last November for approval by the European Commission. This was accepted by Defra, which announced the long-awaited decision at the Beet '08 conference at Peterborough on February 6.

Mr Hoyles, said: "The NFU is angered by these developments. Defra's latest move only adds delay and uncertainty to the UK's bid for compensation.

"It also threatens to derail the whole process and undo the progress that has been made over several months in the interests of the entire industry."

Defra has told the NFU that it plans to open negotiations with the contractors over the split of compensation between growers and contractors.

"This process, which we consider to be unlawful now that the application has been agreed, could have an effect on how much growers receive in compensation," said Mr Hoyles, who said Defra's action was a "bombshell".

British Sugar had to undertake a formal consultation process with the NFU, which represents all growers, said William Martin, vice chairman of the sugar board.

Farmers' leader Peter Kendall urged MPs yesterday to ignore "dubious and out-of-date science" and stop measures which would add £300m to the cost of producing and growing food.

He told members of a Commons' committee that the Defra's proposals to extend nitrate vulnerable zones were "madness".

Mr Kendall, who is president of the National Farmers' Union, said that the proposals could cost £300m or an average £50,000 per farm, mostly on providing extra slurry storage.

Source: Eastern Daily Press