THE detailed implications of the proposed mid-term CAP reforms are still being worked out and Prof Allan Buckwell, chief economist for the Country Land and Business Association, told the conference many questions had to be answered.

The one thing which seemed certain was that modulation would see the UK contribute more money to the reform than it would get back, but how the existing voluntary UK modulation could be squared with the proposed EU modulation was a major issue.

It would not be fair for UK farmers to have both imposed on them, but Prof Buckwell feared it might come down to a "bare knuckle fight between Margaret Beckett and the other 14 ministers".

He also warned that the proposed single annual payment to farmers could affect land prices.

It is proposed that the official certificates of entitlement each farmer will receive giving details of his payment could be sold or leased.

"There will be a market for these entitlements but the person who buys them has to have the eligible hectares to go with them," said Prof Buckwell. "If you do not have the land, you will have to buy or rent some and so it will affect land markets."

The reforms meant that Europe would take away the safety net of intervention payments, unlike the USA and Canada where the governments still had funds to give their farmers when necessary.

The decision to switch to a single annual payment would be based on the average payments the farmer received in 2000-01-02. Hardships and exceptional circumstances could be taken into account, which Prof Buckwell expected would include foot-and-mouth disease.

The scheme should be simple enough for arable farms but more complicated for mixed or livestock enterprises, where land might have been rented.

He listed a number of requirements he believed farmers would have to meet to receive their payments, including respecting statutory requirements and good agricultural practices, but also ruling out growing any commercial crops, including energy crops, on set-aside land.

In conclusion Prof Buckwell said the proposed reform signified real change, which would result in support being spread more thinly across the EU and greater volatility in farmers' circumstances