the nfu champions british farming and provides professional representation and services to its...

The NFU champions British farming and provides professional representation and services to its farmer and grower members

Common Agricultural Policy Reform and its implications for the Cotswolds

Andrew Clark

Head of Policy, NFU


Complex political context• Uncertainty over EU Budget• Lisbon ‘co-decision’ process

– Commission– European Parliament– Council of Ministers

• Timetable involving 5 Presidencies with aim of agreement January 2014

• Member States are in very different situations


“co-decision”


Historic

SAPS

Hybrid

Flat rate

Move to a flat rate system within MS or Region

The NFU champions British farming and provides professional representation and services to its farmer and grower members5

Average direct payments per potentially eligible areaDirect payments net ceilings fully phased-in (in 2016)

Source: European Commission - DG Agriculture and Rural Development

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DP net ceilings fully phased-in (EUR/ha)

EU-27 average (EUR/ha)


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Per hectare value of P2 payments by MSMalta not included in this chart

P2 per ha (2012 RDP budget/UAA)

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New System of Direct Payments• A modest re-distribution of funding between member

states• Limited flexibility for member states to move funding

between pillar 1 and pillar 2 • Direct payments to be capped, targeted at active farmers

and more heavily conditioned (aka greening)• Changes to cross-compliance• Additional assistance for young farmers• Optional payment in areas of natural constraint and for

re-coupled support


Pillar 1 – Direct payments

National ceiling

100%

Basic Payment Scheme compulsory (residual)

(58% to 43%)

Greening payment (30%) compulsory

Natural constraints (up to 5%)

voluntary

Coupled payments (up to 5-10%+) voluntary

Young farmers (up to 2%)

compulsorySmall

farmers scheme -

compulsory (maximum

10%)


An additional payment for “green” agricultural practices

Farmers entitled to a payment under the basic payment shall observe all of the following agricultural practices:

– Crop diversification– Maintenance of Permanent grassland– Ecological focus area


Crop diversification• Where the arable land, claimed by the farmer,

covers more than 3ha, and is not entirely used for grass production, cultivation on the arable land shall consist of at least three different crops.

• None of those crops shall cover less than 5% and the main one shall not exceed more than 70% of the arable land (arable land includes permanent crops)

• Definitions of ‘crops’ shall be defined by Commission at a later stage.


Permanent grassland• Farmers shall maintain as permanent grassland

the areas of their holdings declared as such in their 2014 claim, this it to be known as “reference areas under permanent grassland”.

• Farmers will be allowed to “convert” 5% of the reference areas

• "permanent grassland" means land used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that is not included in the crop rotation of the holding for 5 years or longer


Ecological focus area

• Farmers shall devote at least 7% of their eligible area, excluding areas used for permanent grassland, for ecological purposes

• The ecological areas may include for example; fallow land, landscape features, buffer strips, woodland supported by agri-env.

• The Commission will decide which other features count at a later stage


Derogations

• Farmers whose holding is partially or wholly within Natura2K (i.e. SSSI) will have to do the actions: unless they are not compatible with aims of protected site

• Farmers’ holdings that are organic shall automatically be entitled to the additional aid through a derogation.


Optional Payment for Areas with Natural Constraint

• Member States may grant an additional payment to farmers whose holding is fully or partially situated in areas of natural constraint ANC (i.e. new LFA)

• Up to 5% of national / regional ceiling• Paid as a top up to the Basic Payment

Entitlements


Potential impact to agri-environment delivery

• Uncertainty impacting on-farm decisions• Will greening deliver significant change?• Optional areas of natural constraint payments• Changes to cross compliance

– WFD and SUD requirements introduced at pace of slowest

• EU Budget and Treasury match funding


Implications for the Cotswolds• “Greening measures” may penalise those

already in Environmental Stewardship, as payments payment rates reduce

• Budget for agri-environment activity likely to reduce

• Permanent pasture condition sending perverse signal


Role for Conservation Board• Understand the CAP reform and impact on the

Cotswolds’ special character • Ensure this character is reflected in schemes and

local advice• Support transfer of Cotswold ESA and CSS

agreements to Environmental Stewardship• Active participant in Campaign for the Farmed

Environment and Environmental Stewardship programmes.


THANK YOU

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Documents

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nfu champions british

professional representation

grower members pillar

additional payment

ecological areas

active farmers

later stage slide