Cap reform workshop presentation 24th march charles ireland

  • 80 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
80
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. CAP Reform Workshop Monday 24th March 2014 Charles Ireland
  • 2. CAP Reform- Implications for your Farm • Entitlements • Greening Measures • Environmental Stewardship Overlap • Case Studies • Degressivity • Active Farmers & Young Farmers • 2014 SPS Applications CAP Reform Workshop
  • 3. Entitlements CAP Reform Workshop  New Basic Payment Scheme introduced on 1st Jan 2015  Single Payment Entitlements ‘rolled over’ in England to Basic Payment Entitlements  Need to transfer Single Payment Entitlements by 19th Oct 2014  Surplus Single Payment Entitlements will be lost  Basic Payment Entitlements can transfer from 15th Jan 2015 to 2nd April 2015?
  • 4. Entitlements – implications  Make sure in correct ownership  If taking on/giving up land in September – act quickly  Do sums now- sell surplus  2 year use rule Cap Reform Workshop
  • 5. Greening Measures  Will make up 30% of the new annual payment  Non compliance penalty to rise to 37.5% by 2018  Ecological Focus Area (i)  Crop Diversification (ii)  Permanent Grassland (iii) CAP Reform Workshop
  • 6. i) Ecological Focus Area (EFA)  5% of arable area (7% in 2018?)  Range of options  Nitrogen fixing crops – Input restrictions  Landscape Features  Exemptions: > 75% perm grassland or organic  Overlap with Environmental Stewardship Cap Reform Workshop
  • 7. Ecological Focus Area Source: European Commission EXAMPLE EFA WEIGHTINGS Landscape Features Unit Equivalent EFA area Comments Hedges /m 4.5 Up to 10m Wooded bank /m 12 Isolated tree /m 30 Crown >4m Trees in line /m 6 Crown >4m Field copses /m² 1.5 Overlapping crown <0.3ha Field margin /m 9 >1m Ponds /m² 1.5 <0.1 ha Ditches /m 3 <6m Fallow /m² 1 Buffer strips /m² 9 >1m Agro-forestry /m² 1 Forest edges /m² 9 >1m Short rotation coppice /m² 0.3 Catch crops/green cover /m² 0.3 Nitrogen fixing crops /m² 0.3 CAP Reform Workshop
  • 8. Environmental Stewardship Overlap  Now closed existing schemes continue to end of term  No double funding allowed but;  Pre 2012 Agreements likely to allow options to be used for EFA  Post 2012 Agreements likely to suffer reduction where conflict with EFA  Some options can be used for ELS & EFA  New Environmental Land Management Scheme (NELMS) starts January 2016 CAP Reform Workshop
  • 9. ii) Crop Diversification  2 crops if over 10 hectares  3 crops if over 30 hectares  Main crop up to 75%; 2 main crops together not more than 95%  Third crop could be EFA but input restrictions  Exemptions: holding is organic; or >75% of the holding is permanent grassland and arable area is <30h >75% of the arable area is grassland/fallow and arable area is <30 ha > 50% of the arable new and not declared previous year- primarily for specialist cropping arrangements CAP Reform Workshop
  • 10. iii) Permanent Grassland  Defined as grassland- established more than 5 years  Possibly grass margins?  2012/15 reference year – 5% tolerance  Administered at National level CAP Reform Workshop
  • 11. Case Study 1 80 Hectares CFA Block Cropped  Pre reform rotation: year one 1st wheat, year two 2nd wheat, year three: OSR  Basic contractors charge: £250/ha, Farmers first charge £250/ha, 50% divisible surplus  Greening rotation: 50% first wheat, 45% OSR, 5% fallow + increased contractors charge £275/ha  Consider opting out of greening CAP Reform Workshop Pre CAP Reform With Greening (10% Increased Contractor Charge) Opting out of Greening (30% Reduction in SP) Average Arable Output £100,801 £93,960 £100,801 Gross Margin £55,867 £51,440 £55,867 Single Payment (£200/ha) £16,000 £16,000 £11,200 Net Margin £38,067 £33,240 £33,267 Divisible Surplus £18,067 £13,240 £13,267 Farmers Return £29,034 £26,620 £26,634 Contractors Return £29,034 £27,520 £26,634
  • 12. Case Study 2 300 Hectares (Combinable) Farmed in Hand  Pre reform rotation: 1/3 1st wheat, 1/3 2nd wheat, 1/3 OSR  Greening rotation: 95ha 1st wheat, 95ha 2nd wheat, 95ha OSR, 15ha fallow  Not worth opting out of greening CAP Reform Workshop Pre Cap Reform With Greening Opting out of greening (30% Reduction in SP) Arable Output £378,000 £359,000 £378,000 Gross Margin £209,500 £199,025 £209,500 Single Payment (£200/ha) £60,000 £60,000 £42,000 Profit (before rent) £134,500 £125,525 £116,500
  • 13. Case Study 3 300 Hectares (High Value Crops) Farmed in hand  Pre reform rotation: 50% 1st wheat, 1/6 sugar beet, 1/6 onion, 1/6 pots  Greening rotation: 143ha wheat, 47ha s - beet, 47ha onions, 48ha pots, 15ha fallow * Rent paid for fallow land £7425, £475/ha (£200/ac)  Consider renting in ‘green’ area CAP Reform Workshop Pre Cap Reform With Greening Opting out of greening (30% Reduction in SP) Renting 15ha Fallow from 3rd party* Arable Output £886,500 £838,425 £886,500 £886,500 Gross Margin £614,200 £580,632 £614,200 £614,200 Single Payment (£200/ha) £60,000 £60,000 £42,000 £63,000 Profit (before rent) £404,200 £370,632 £386,200 £399,775
  • 14. Degressivity  ‘Degressivity’ instead of Capping – obligatory  5% above €150,000  Based on Basic Payment element only (not greening)  Salary offset – not available in UK  Up to 2275 acres – no deduction  4000 acres – £4830 deducted CAP Reform Workshop
  • 15. Other details  Active Farmer rule: ‘Minimum Level of Agricultural Activity’ ‘Negative List’  Young Farmers’ Scheme: Under 40 years old; Head of Business 25% top-up, for first 5 years, limited area Estimate £22,000 over 5 years? CAP Reform Workshop
  • 16. 2014 SPS Applications- Action  Entitlements in correct name  Calculate number of Entitlements – sell excess  Woods registered  Online preferred  Check Crop Coding – grassland and margins in ELS CAP Reform Workshop
  • 17. Summary  Basic Payments less  Greening – Final details to be confirmed  Simplification?  Mapping features – changes online – one set maps  Farm cropping/policy needs review – opt out/rent in CAP Reform Workshop