CAP Update presentation - Ed Barker, CLA

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CLA Agricultural Adviser, Ed Barker presentation on CAP developments given at the CLA's CAP Update event held at The Bell Hotel on Tuesday 3 December at The Bell Hotel, Stilton near Peterborough.

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CAP Update presentation - Ed Barker, CLA

  1. 1. CAP Reform Update EDWARD BARKER Agricultural Adviser edward.barker@cla.org.uk @edbarkercla
  2. 2. Business Planning Nothing is decided until everything is decided 2
  3. 3. A Brave New World • 28 Member States • Co-Decision procedure • A very ambitious set of proposals 3
  4. 4. A Smaller Budget... 4
  5. 5. 5
  6. 6. Modulation - Flexibility between Pillars • Up to 15% from Pillar 1 to Pillar 2 • Up to 15% from Pillar 2 to Pillar 1 6
  7. 7. DEFRA Implementation • Formal consultation 31/10/2013 – 28/11/2013 • Policy objectives Vs • The RPA • Disallowance Risks (€550m - 2005-2013) 7
  8. 8. Basic Payment Scheme (BPS) • Basic Payment • Greening Payment • Regional Payments • Horizontal Regulation • Young Farmers Scheme • Minimum Claim Size 8
  9. 9. Now coming in from 2015 9
  10. 10. Greening • Separate from basic payment • 30% of Direct (Pillar 1) Payments 3 elements: • Crop diversification • Permanent grassland • Ecological Focus Areas (EFAs) 10
  11. 11. 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 separate11
  12. 12. 12
  13. 13. 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! 13
  14. 14. Greening - 3 Ecological 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 14
  15. 15. Greening - 3 Ecological 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. 15
  16. 16. Greening Exemptions • “Green by definition” • Certified Organic • Natura 2000 (SSSIs) • „Approved‟ schemes • More than 75% Permanent Pasture • Double Funding 16
  17. 17. 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 17
  18. 18. 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 18
  19. 19. 19
  20. 20. Rates per Hectare from 2015 English Region Claimed Area Rate (€) (2012) Non SDA 6,717,520 242 SDA 503,835 195 Moorland 406,443 34 Or English Region Rate (€) Non SDA SDA Moorland 236 62 20
  21. 21. 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 cultivated 21
  22. 22. Negative List • Water Works • Airports • Railway Services • Permanent Sport & Recreation Grounds • Real Estate Services • Member States can extend this list 22
  23. 23. 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). 23
  24. 24. 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 24
  25. 25. 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 25
  26. 26. 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 26
  27. 27. 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 greening 27
  28. 28. 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... 28
  29. 29. Rural Development: Pillar 2 • Reduced budget • Revised agri-environment schemes • Performance Reserve • Leader • European Structural and Investment Fund (SIF) 29
  30. 30. Nothing is decided until everything is decided 30
  31. 31. THANKS ! Contact Edward Barker edward.barker@cla.org.uk 0207 235 0511 @edbarkercla 31

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