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CAP Reform Update
EDWARD BARKER

Agricultural Adviser
edward.barker@cla.org.uk

@edbarkercla
Business Planning

Nothing is decided until

everything is decided

2
A Brave New World

• 28 Member States
• Co-Decision procedure
• A very ambitious set of proposals
3
A Smaller Budget...

4
5
Modulation - Flexibility
between Pillars

• Up to 15% from Pillar 1 to Pillar 2
• Up to 15% from Pillar 2 to Pillar 1

6
DEFRA Implementation
• Formal consultation 31/10/2013 – 28/11/2013
• Policy objectives
Vs

• The RPA
• Disallowance Risks (€550m - 2005-2013)
7
Basic Payment Scheme (BPS)
• Basic Payment
• Greening Payment
• Regional Payments
• Horizontal Regulation
• Young Farmers Scheme
• Minimum Claim Size

8
Now coming in from 2015

9
Greening
• Separate from basic payment
• 30% of Direct (Pillar 1) Payments
3 elements:

• Crop diversification
•

Permanent grassland

•

Ecological Focus Areas (EFAs)
10
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
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
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
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
Greening Exemptions
• “Green by definition”
• Certified Organic
• Natura 2000 (SSSIs)
• „Approved‟ schemes
• More than 75% Permanent Pasture

• Double Funding
16
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
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
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
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
Negative List
• Water Works
• Airports
• Railway Services
• Permanent Sport & Recreation Grounds

• Real Estate Services
• Member States can extend this list

22
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
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
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
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
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
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
Rural Development: Pillar 2
• Reduced budget
• Revised agri-environment schemes

• Performance Reserve
• Leader
• European Structural and Investment Fund (SIF)

29
Nothing is decided until

everything is decided

30
THANKS !
Contact

Edward Barker
edward.barker@cla.org.uk
0207 235 0511

@edbarkercla

31

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CAP Update presentation - Ed Barker, CLA

  • 1. CAP Reform Update EDWARD BARKER Agricultural Adviser edward.barker@cla.org.uk @edbarkercla
  • 2. Business Planning Nothing is decided until everything is decided 2
  • 3. A Brave New World • 28 Member States • Co-Decision procedure • A very ambitious set of proposals 3
  • 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 6
  • 7. DEFRA Implementation • Formal consultation 31/10/2013 – 28/11/2013 • Policy objectives Vs • The RPA • Disallowance Risks (€550m - 2005-2013) 7
  • 8. Basic Payment Scheme (BPS) • Basic Payment • Greening Payment • Regional Payments • Horizontal Regulation • Young Farmers Scheme • Minimum Claim Size 8
  • 9. Now coming in from 2015 9
  • 10. Greening • Separate from basic payment • 30% of Direct (Pillar 1) Payments 3 elements: • Crop diversification • Permanent grassland • Ecological Focus Areas (EFAs) 10
  • 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! 13
  • 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. 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. Greening Exemptions • “Green by definition” • Certified Organic • Natura 2000 (SSSIs) • „Approved‟ schemes • More than 75% Permanent Pasture • Double Funding 16
  • 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. 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
  • 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. 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. Negative List • Water Works • Airports • Railway Services • Permanent Sport & Recreation Grounds • Real Estate Services • Member States can extend this list 22
  • 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. 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. 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. 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. 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. 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. Rural Development: Pillar 2 • Reduced budget • Revised agri-environment schemes • Performance Reserve • Leader • European Structural and Investment Fund (SIF) 29
  • 30. Nothing is decided until everything is decided 30