2013 outlook: Agricultural policy developments
What does 2013 hold for UK farming? Farmers Weekly and farm business consultant Andersons have teamed up to provide an outlook. Today we look at agricultural policy developments.
The biggest policy issue of 2013 should be agreement on Common Agricultural Policy reform.
However, despite much discussion since the proposals were published in 2011, the final outcome appears not much closer, says Andersons consultant Caroline Ingamells.
“EU farm ministers and the European Parliament will decide the reform. But opinions are divided, and negotiations cannot even begin until it is known what funds are available.”
Following the failure of talks in late November, heads of state will reconvene early in the new year to thrash out a deal on the 2014-2020 EU budget. Once this is resolved, final CAP negotiations can start, says Ms Ingamells.
“On one point we are fairly certain – reform will not begin on 1 January 2014 as originally proposed, but January 2015 instead.”
Key points
Final CAP negotiations to start in 2013 once EU budget is agreed
Reforms unlikely to take effect until 2015
Continued SPS will cover the gap for direct payments, but rural development funding could suffer in run-up to new scheme
At that point the new Basic Payment Scheme will start and new greening requirements and cross-compliance rules will apply.
“The Single Payment Scheme will cover the gap, at lower funding levels. Any delay is likely to cause more of a problem to rural development schemes – there may be a period where new funding is not available.”
Some proposals are likely to change substantially, including the granting of entitlements, she adds.
“It could be that only those countries with historic systems, such as Scotland and Wales, would have to grant new entitlements. If so, English farmers would be able to roll over existing entitlements, negating the need for a 2011 ‘golden ticket’.”
Commentary based on Andersons’ Outlook 2013
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