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.

1. CAP Reform Update
EDWARD BARKER
Agricultural Adviser
edward.barker@cla.org.uk
@edbarkercla

2. Business Planning
Nothing is decided until
everything is decided
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3. A Brave New World
• 28 Member States
• Co-Decision procedure
• A very ambitious set of proposals
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4. A Smaller Budget...
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5. 5

6. Modulation - Flexibility
between Pillars
• Up to 15% from Pillar 1 to Pillar 2
• Up to 15% from Pillar 2 to Pillar 1
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7. DEFRA Implementation
• Formal consultation 31/10/2013 – 28/11/2013
• Policy objectives
Vs
• The RPA
• Disallowance Risks (€550m - 2005-2013)
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8. Basic Payment Scheme (BPS)
• Basic Payment
• Greening Payment
• Regional Payments
• Horizontal Regulation
• Young Farmers Scheme
• Minimum Claim Size
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9. Now coming in from 2015
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10. 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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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

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!
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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
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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.
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16. Greening Exemptions
• “Green by definition”
• Certified Organic
• Natura 2000 (SSSIs)
• „Approved‟ schemes
• More than 75% Permanent Pasture
• Double Funding
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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
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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
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19. 19

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
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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
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22. Negative List
• Water Works
• Airports
• Railway Services
• Permanent Sport & Recreation Grounds
• Real Estate Services
• Member States can extend this list
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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).
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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
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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
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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
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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
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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...
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29. Rural Development: Pillar 2
• Reduced budget
• Revised agri-environment schemes
• Performance Reserve
• Leader
• European Structural and Investment Fund (SIF)
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30. Nothing is decided until
everything is decided
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31. THANKS !
Contact
Edward Barker
edward.barker@cla.org.uk
0207 235 0511
@edbarkercla
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