CAP reform update (October 2013)

CAP Reform – Agricultural Business Analysis Update 18/10/13 So what is it all about? The agricultural industry is now waiting for the England, Scotland, Wales and Northern Ireland to conduct their public consultation about the specific ways in which the framework will be adopted and implemented. Until the consultations are concluded specific details will not been known until early 2014 with details issued by the summer of 2014 to allow for cropping.

To date Alan Bason thinks the big issues for English dairy farmers will be the impact that the reforms have upon cropping. Dairy farmers who grow a combination of maize and whole crop along with temporary grassland could find themselves having to take land out of production to meet the new greening measures. Arable farmers will have the same concerns although with winter crops and spring crops (winter & spring barley) being classes as two separate crops it shouldn’t pose as big a problem.

Alan Bason also believes that Welsh farmers will have the added challenge of seeing their payments move from a historical basis to a regional payment. For some Welsh businesses who have changed their farming system since 2002 this could have large financial implications.

The new greening measures are a new element to the CAP reform and are compulsory. Under the new greening element there are 3 main features:      – Crop diversification      – Protection of permanent pasture      – Ecological Focus areas (EFAs)

The impact that the greening will have will vary from business to business. One of the key elements is that EFAs cannot include areas where a farmer is already receiving support so this will remove all land which forms part of an existing Entry Level Stewardship Scheme or a Higher Level Stewardship Scheme, resulting in some farmers having to almost double the amount of environmental features that they have. In the future as these environmental schemes come to an end, in particular the ELS, no replacement scheme will be offered.

Organic farming businesses are seen to be already meeting the greening measures and will still be eligible for the Basic Payment Scheme without having to undertake further environmental management measures.

Cross compliance rules will still be compulsory for all farms.

If you find that it is not as straightforward as you would like it to be then please email rosalind@abafoodchain.co.uk with an initial query on how best to negotiate your changes to land management.

Another change is that from 2015 all applications have to be submitted online. The Single Payment scheme will also be referred to as the Basic Payment Scheme.

Below is a summary of the Trilogue talks on September 24th on the EU’s Common Agriculture Policy. youtube=http://www.youtube.com/watch?v=yie5dHKf-sk&w=420&h=315

The specific details in regard to the implementation of the CAP framework are still to be clarified in writing by the EU. Hopefully this will be in end of October/ early November.

If you would like to be kept up to date or have any questions about the implementation of the amended policy and the impact that it will have on farming businesses and systems please email rosalind@abafoodchain.co.uk

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