Big landowners Tir Cynnal losers.

Byline: ANDREW FORGRAVE

LARGE landowners in the Welsh uplands are likely to lose out in a new entry-level agrienvironment scheme unveiled yesterday.

Countryside minister Carwyn Jones announced there would be no National Envelope for Wales but there would be a new agrienviroment scheme for all Welsh farmers as part of its CAP reform package.

The voluntary scheme -- to be called Tir Cynnal (Land Support) -- will be half funded by 10% modulation, or top slicing, of the new single farm payment. The rest will come from the Treasury.

Tir Cynnal, due to start next spring, is expected to cost around pounds 20m-a-year.

Payment rates will be set in early 2005 and the Assembly will impose a maximum payment threshold of 100ha, or 240 acres.

NFU Cymru president Peredur Hughes said this condition was ``a classic example of Peter being robbed to pay Paul''.

He added: ``Although around 75% of farms in Wales fall under the 100 ha threshold, I am concerned the scheme will put off larger landowners who farm extensively.

``For some larger holdings there will be a break-even level at which farmers will start receiving less money from the scheme than they are putting in.

``It's another form of redistribution which could lead to some farms deciding it's not worth the bother of joining up. ''

Mr Jones said the redistribution of Tir Cynnal payments was a deliberate policy designed to help smaller family farms.

He said: ``A critcism of the Tir Gofal scheme is that it is too biased towards larger farms.

``We wanted to ensure as many farmers as possible gained access to Tir Cynnal so, yes, we have included an element of redistribution. ''

Tir Cynnal will require participants to follow rules designed to protect wildlife habitats, landscapes, ancient monuments as well as reducing pollution and maintaining public rights of way.

If Tir Cynnal take-up reached expectations Wales will need to modulate CAP payments by 10% by 2006 -- almost three times current levels.

The Farmers Union of Wales welcomed the new scheme but claimed the modulation rate would hit smaller family farms hard.

n DETAILS of Wales's National Reserve will not now be unveiled until September, Carwyn Jones said. The reserve, a fund created by tops licing CAP payments, will help farmers not fully eligible for SFPs. Its operation must be co-ordinated on a UK basis.