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For example, a recent survey revealed strong urban support for farmers, with 83% saying they were beneficial to the countryside and 77% supporting subsidies. Over 90% thought of farmers as hard working and courageous. Undoubtedly there are stronger cultural ties between town and country in France, with about 8% of the population still employed in agriculture, compared with less than 1% in 
the UK. 

When it comes to additional support for farmers, the French reputation is almost legendary. Look no further than the Stabiporc system of aid for French pig producers. In 1999 this paid out over £70m in state aid in the form of cheap loans, social security subsidies and marketing grants to help that sector through a market crisis - despite being declared illegal by Brussels.

There is also an array of schemes designed to encourage new entrants and young farmers. These have existed since the early 1960s and include loans, to help finance the purchase of the farm, and grants to help fund the first three years of farming. The loans are distributed by the commercial banks, such as Crédit Agricole or Crédit Lyonnais, subject to the approval of the local ministry of agriculture. They are allocated to young farmers to help pay for the acquisition of land and equipment, renovation expenses and the maintenance of machinery.

The amount available depends on the status of the claimant and the quality of the land, and can be applied for at any stage during the first ten years of farming. A married couple in the less favoured areas can claim up to 1,440,000 francs, to be paid back over 15 years at 2.55%. 

Click here for information on Loans and Grants

As with the loans, the grants also depend on the farmer's status and land type. A single young farmer can receive up to 113,400 francs on the plains, up to 146,400 francs in the LFAs and up to 235,400 francs in the mountains. To qualify for a grant, the applicant must have a diploma in agriculture and have completed a six-month practical training course away from home. They must also be between 21 and 40 years old.

All applications are handled by what is known as the ADASEA - a government quango, which looks after young farmers. The ADASEA co-ordinates the paperwork and submits it to the local ministry of agriculture. Applicants must follow a 40-hour preparatory course and submit a fully costed farm plan for the holding they are hoping to rent or buy. 

This plan, which may be drawn up with the help of a consultant, must give details of the condition of the farm, the applicant's financial position, his cash requirements, his planned investments and an expected net farm income for the first three years. The young farmer must also agree to stay in farming for 10 years, and to submit annual accounts to the local ministry of agriculture. If he quits farming, the grant must be repaid. 

If approved, the grant will be paid in two instalments - 70% within the first three months of setting up and the remaining 30% after three years. This balancing payment is dependent on the young farmer achieving certain income targets. Other grants are also available, (see panel, below left), including local authority schemes to attract new farmers, regional water authority grants (60%) and the government's PAM scheme.

Young farmers are only charged half the going rate of tax in the first five years of instalment, while social security charges are reduced for the first three years. They are also exempt from housing and business rates. In this way, every effort is made in France to encourage the next generation into agriculture.
 

This article is reproduced with kind permission of Farmers Weekly.

For the Farmers Weekly website, click here: www.fwi.co.uk