As many readers may be aware the Common Agricultural Policy (CAP) is yet again being reformed. In theory the new regime should have come in to force on 1st January this year, but as with all things “European” nothing is straightforward when you need to get 27 member states to agree on anything, let alone a far reaching and complicated reform of the agricultural subsidy regime stretching from Finland in the North to Greece in the South and Portugal in the West to Bulgaria in the East.
However in June this year the EU Agriculture Ministers agreed the principles for the next reform package which is due to start on 1st January 2015. As a result the old regime has had to be rolled forward for 2013 and 2014, which in itself poses problems, while the detail concerning the new regime continues to be hammered out at both a European and member state level.
As you can imagine this is a fearfully complicated system but as part of this regime, our government, in the form of DEFRA has just published its consultation package for England. The government is inviting people to make their opinion known on a whole variety of issues and a couple of the most important questions I have identified are:
1. How much money should be diverted from direct payments for farmers (Pillar 1) to Rural Development funds (Pillar 2). The government favours 15% to be diverted from Pillar 1 to Pillar 2 which is the maximum allowed by the EU but now is your chance to make your view known.
2. Should we redistribute the Pillar 1 support to farmers in favour of upland farmers at the expense of lowland farmers. There appears to be a general under current of support for this proposal because only a relatively small reduction in payments to lowland farmers would make a significant difference to upland farmers. However, as most lowland livestock farmers still rely on subsidy payments to make a profit, unlike arable farmers, there may well be a difference of opinion on this matter within the lowland farming community – again now is your chance to voice your opinion.
Within the consultation paper the government has also made a number of important decisions, the most significant of which for farmers here in mid-Somerset is that the existing regime of entitlements will be rolled forward in to the new scheme.
"This is a very important point because farmers will not have to apply for new entitlements under the new system as they did when the current scheme was introduced in 2005. This application process caused a massive administrative headache which took years to sort out. The practical effect of this is that the introduction of the new Basic Payment Scheme (BPS) as it will be known, should be much more straightforward when it comes in to force in 2015. But, another side effect of this is that the capital value of existing “entitlements” is likely to rise to reflect the fact that they will now be around until at least 2020 rather than potentially being phased out at the end of 2014.
The timescales for the introduction of the CAP reform package are very tight indeed and as a result the government needs to report back to the EU on the latest consultation by 31st December this year so if you want to make your views known, now is your chance and so I suggest you download the DEFRA consultation document and get consulting.
However in June this year the EU Agriculture Ministers agreed the principles for the next reform package which is due to start on 1st January 2015. As a result the old regime has had to be rolled forward for 2013 and 2014, which in itself poses problems, while the detail concerning the new regime continues to be hammered out at both a European and member state level.
As you can imagine this is a fearfully complicated system but as part of this regime, our government, in the form of DEFRA has just published its consultation package for England. The government is inviting people to make their opinion known on a whole variety of issues and a couple of the most important questions I have identified are:
1. How much money should be diverted from direct payments for farmers (Pillar 1) to Rural Development funds (Pillar 2). The government favours 15% to be diverted from Pillar 1 to Pillar 2 which is the maximum allowed by the EU but now is your chance to make your view known.
2. Should we redistribute the Pillar 1 support to farmers in favour of upland farmers at the expense of lowland farmers. There appears to be a general under current of support for this proposal because only a relatively small reduction in payments to lowland farmers would make a significant difference to upland farmers. However, as most lowland livestock farmers still rely on subsidy payments to make a profit, unlike arable farmers, there may well be a difference of opinion on this matter within the lowland farming community – again now is your chance to voice your opinion.
Within the consultation paper the government has also made a number of important decisions, the most significant of which for farmers here in mid-Somerset is that the existing regime of entitlements will be rolled forward in to the new scheme.
"This is a very important point because farmers will not have to apply for new entitlements under the new system as they did when the current scheme was introduced in 2005. This application process caused a massive administrative headache which took years to sort out. The practical effect of this is that the introduction of the new Basic Payment Scheme (BPS) as it will be known, should be much more straightforward when it comes in to force in 2015. But, another side effect of this is that the capital value of existing “entitlements” is likely to rise to reflect the fact that they will now be around until at least 2020 rather than potentially being phased out at the end of 2014.
The timescales for the introduction of the CAP reform package are very tight indeed and as a result the government needs to report back to the EU on the latest consultation by 31st December this year so if you want to make your views known, now is your chance and so I suggest you download the DEFRA consultation document and get consulting.
James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk
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