DEFRA urged to rethink CAP modulation stance
Farming leaders in England have pressed the government to rethink its proposed move to introduce a 15% modulation rate on CAP payments.
DEFRA said there was a strong case to modulate 15% of funds from direct payments (Pillar 1 of the CAP) to rural development schemes (Pillar 2 of the CAP) when it launched a consultation on the issue at the start of November.
But the NFU, Country Land and Business Association and Tenant Farmers Association have united to call for that rate to be no more than 9%.
In a joint-letter to DEFRA secretary Owen Paterson, the organisations said that the 9% modulation figure would be enough to cover all existing environmental commitments as well as leaving a surplus of over ÂŁ1billion to fund new activity. That meant plans to modulate at 15% of pillar 1 funding would not be necessary.
But the letter added that if DEFRA was determined to push through the modulation rate of 15% it should be phased in and reviewed. This, the letter argued, would make the cuts to direct support easier for farm businesses to absorb than a straight removal of 15%.
The letter states:
“A phased approach is a better principle of budgetary management to establish the demand for Rural Development measures before setting a budget, rather than setting a budget and then devising ways of spending it.
And it argues that modulation remained extremely unpopular with the majority of farmers. Anything lower than the maximum would attract less resistance.
The organisations also criticised the Leader project. The project is funded by the Rural Development Programme for England which in turn is financed by money modulated from farm businesses.
“It has generated projects that fall short of the spirit of the objectives of the programme, and we believe that DEFRA should not exceed its legal responsibility of a minimum 5% of the RDPE budget.” it added.
The consultation on CAP implementation ends on 28 November.
