CAP Reform Update

EDWARD BARKER

Agricultural Adviser

edward.barker@cla.org.uk

@edbarkercla

Business Planning

Nothing is decided until

everything is decided

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A Brave New World

• 28 Member States

• Co-Decision procedure

• A very ambitious set of proposals

A Smaller Budget...

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Modulation - Flexibility

between Pillars

• Up to 15% from Pillar 1 to Pillar 2

• Up to 15% from Pillar 2 to Pillar 1

DEFRA Implementation

• Formal consultation 31/10/2013 – 28/11/2013

• Policy objectives

Vs

• The RPA

• Disallowance Risks (€550m - 2005-2013)

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Basic Payment Scheme (BPS)

• Basic Payment

• Greening Payment

• Regional Payments

• Horizontal Regulation

• Young Farmers Scheme

• Minimum Claim Size

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Now coming in from 2015

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Greening

• Separate from basic payment

• 30% of Direct (Pillar 1) Payments

3 elements:

• Crop diversification

• Permanent grassland

• Ecological Focus Areas (EFAs)

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Greening - 1

Crop diversification

• Arable area 10 – 30 Ha: 2 crops

– Main crop < 75%

• Arable Area 30 Ha or more : 3 crops

– Main crop < 75%

– 2 crops < 95%

Winter & Spring crops = defined as separate

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Greening - 2

Permanent Grassland

• Continuous grass for 5 years+

• National ratios will apply to amount kept

• Conversion to arable use same rules

• EIA and SPS are very separate issues!

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Greening - 3Ecological Focus Areas (EFAs)

• 5% of arable area

• Eligible if arable land >15 Ha

• Defra have option to choose its own

certification scheme.

• Potential complexity makes it very unlikely

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Greening - 3Ecological Focus Areas options:

• Land laying fallow;

• Terraces;

• Landscape features;

• Buffer Strips;

• Supported agro-forestry;

• Uncultivated land along forest edge;

• Areas of short-rotation coppice;

• Afforested areas established under rural development

schemes;

• Areas with catch crops or green cover;

• Areas with nitrogen fixing crops.

Greening Exemptions

• “Green by definition”

• Certified Organic

• Natura 2000 (SSSIs)

• „Approved‟ schemes

• More than 75% Permanent Pasture

• Double Funding

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Revised agri-environment

schemes

• Revised scheme as part of the new look RDPE

• Could lead to a more competitive scheme with

higher environmental standards

• Dual Use

• Likely to lead to reduced payment rates

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Regional Payments

England is currently broken down into 3

payment areas:

– Non-SDA, SDA and Moorland

• Defra likely to amend these areas and

payment amounts

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Or

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English Region Claimed Area

(2012)

Rate (€)

Non SDA 6,717,520 242

SDA 503,835 195

Moorland 406,443 34

Rates per Hectare from 2015

English Region Rate (€)

Non SDA 236SDA

Moorland 62

Active farmer / Negative List

• 2 parts:

1. „Negative List’

• Exempt if direct payments > 5% of ag. income

• Exempt if ag. activities are „not insignificant‟

• Exempt if principal objective is ag. activity

2. „Minimum Activity’

• Cannot specify stocking density or cultivations

• Focus on whether it can be grazed or cultivated21

Negative List • Water Works

• Airports

• Railway Services

• Permanent Sport & Recreation Grounds

• Real Estate Services

• Member States can extend this list

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Capping / „Degressivity‟

• A new one for the Oxford English Dictionary!

• Capping – no longer on the table.

• Minimum reduction in payments over €150,000 of 5%

• Only subject to 70% of Direct Payments (not greening)

• Salaries could be offset against deducted amount (unlikely

in England).

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Minimum Claim Size

• The minimum claim size will be increased

from 1 Ha to 5 Ha

• Around 15,000 RPA claimants in 2012 were

<5 Ha

• 50,000 Ha of land covered

• Cross Compliance failures high in this category

Entitlements

• Historic payment areas: re – establish

• Flat rate areas: option to roll-over

• Many issues to consider:

1. Final date for RLE1 transfers in 2014?

2. Rules for transfers under new CAP

3. Sales in 2014?

4. National reserve allocations

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Young Farmers Scheme

• Mandatory

• Up to 2% of Direct Payments

• Younger than 40

• Additional annual payment

for 5 years

• 25% top up of average

payment per/Ha

• Limit can be set between 25

Ha – 90 Ha

• Eligibility criteria can be set

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Horizontal Regulation

Very similar approach to the current SPS system

Cross compliance

• SMRs – will remain

• GAECs – Scope for some to be removed

- Rights of Way, Injurious weeds

• Penalties – both for cross compliance and

greening27

Claiming post 2015

• All claims are likely to be online only

• All AES and BPS schemes will be in one place

• CLA in discussion with DEFRA on how to deal with

those who cannot go online

• The CLA are lobbying for hard copy guidance...

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Rural Development: Pillar 2

• Reduced budget

• Revised agri-environment schemes

• Performance Reserve

• Leader

• European Structural and Investment Fund (SIF)

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Nothing is decided until

everything is decided

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THANKS !

Contact

Edward Barker

edward.barker@cla.org.uk

0207 235 0511

@edbarkercla

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