Set-aside was a scheme introduced by the European Economic Community (EEC) in 1988 (Regulation (EEC) 1272/88), to (i) help reduce the large and costly surpluses produced in Europe under the guaranteed price system of the Common Agricultural Policy (CAP); and (ii) to deliver some environmental benefits following considerable damage to agricultural ecosystems and wildlife as a result of the intensification of agriculture.
Set-aside became compulsory in 1992, primarily as a means to reduce the "grain mountain" as part of the Common Agricultural Policy. It was originally set at 15% and reduced to 10% in 1996. Following the introduction of decoupled payments in 2005, farmers who had historically claimed set-aside were awarded a number of set-aside 'entitlements' equivalent to the area they had previously set-aside. In order to receive payment on these set-aside entitlements, an equivalent number of hectares had to be removed from agricultural production.
On 16 July 2007, the European Commission (EC) announced its intention to publish a proposal to reduce the set-aside requirement to 0% in 2008, and the proposal was adopted on 26 September 2007. This was to help mitigate current shortages in the EU cereals market, increase cereals supply to the market and therefore reduce prices following two consecutive lower EU harvests.
- "Commission Regulation (EEC) No 1272/88 of 29 April 1988 laying down detailed rules for applying the set-aside incentive scheme for arable land". EUR-Lex. European Commission. 29 April 1988. Retrieved 2 August 2012.
- "EU proposes scrapping fallow land". BBC News. 13 September 2007. Retrieved 1 August 2012.
- Waterfield, Bruno; Charles Clover (26 September 2007). "Set aside suspended by European Union". The Telegraph. Retrieved 1 August 2012.
- ""Health Check" of the Common Agricultural Policy". European Commission. Retrieved 1 August 2012. "On 20 November 2008 the EU agriculture ministers reached a political agreement on the Health Check of the Common Agricultural Policy. Among a range of measures, the agreement abolishes arable set-aside...."
- Kanter, James (20 November 2008). "EU governments to overhaul farm subsidies". The New York Times. Retrieved 1 August 2012. "In addition, EU governments agreed formally to abolish the so-called set-aside, which required some farmland to be kept out of production over the past two decades."