The bond scheme
Swinbank, A. and Tranter, R. B. (2010) The bond scheme. In: Oskam, A., Meester, G. and Silvis, H. (eds.) EU policy for agriculture, food and rural areas. Wageningen Academic Publishers, Wageningen, The Netherlands, pp. 207-212. ISBN 9789086861187
Under the bond scheme, a pre-determined series of payments would compensate farmers for lost revenues resulting from policy change. Unlike the Single Payment Scheme, payments would be fully decoupled: recipients would not have to retain farmland, or remain in agriculture. If vested in a paper asset, the guaranteed, unencumbered, income stream would be similar to that from a government bond. Recipients could exchange this for a capital sum reflecting the net present value of future payments, and reinvest in other business ventures, either on- or offfarm.With a finite, declining flow of payments, budget expenditure would reduce, releasing funds for other uses.