Farmers infuriated about DEFRA modulation plan
Farmers are infuriated and at a loss to understand the government’s drive to modulate English single farm payments at the maximum rate of 15%, according to the NFU.
The union pointed out that DEFRA secretary Owen Paterson had pledged to review proposals to transfer the maximum 15% from direct support (Pillar 1) to rural development schemes (Pillar 2). Mr Paterson said he would only go ahead with the 15% rate if it could be demonstrated it would deliver “worthwhile and valuable outcomes”, the NFU said.
But NFU officials believe DEFRA ministers have already recommended to Cabinet colleagues that a 15% modulation rate is applied to farm payments from 2014. That wipes out any opportunity for a proper assessment based on what rate is needed and the level of demand for future schemes.
This recommendation is so the government’s decision can be communicated to the EU Commission by the end of December. It has been made despite the government having the flexibility to opt for a lower rate now and review it upwards in 2017 if it is needed.
NFU president Peter Kendall said: “The NFU has used the government’s own figures contained in the recent consultation to build the case for retaining the rate at 9%. At the same time DEFRA has totally failed to set out its vision for making effective use of rural development money in the future.
“There has been no attempt to explain to farmers how increasing the transfer rate beyond 9% will deliver “worthwhile and valuable outcomes” for their businesses. Farmers remain at a complete loss to understand what the government intends to use this money for or how it can be used effectively for the benefit of their businesses.”
Mr Kendall added that farmers understood the need for environmental protection and management.
“Much of the good work undertaken by farmers through their Entry Level Scheme (ELS) agreements will form the basis for the new environmental conditions for so-called greening.
“We know the government is designing the replacement to the ELS along the lines of a more targeted and competitive scheme that aspires to have halve the area of land in England currently in a scheme supported in the future,” Mr Kendall said.
He added that the threat of reductions in farmers’ payments that were disproportionate to those of their immediate competitors was making them angry and frustrated with government.
The Scottish government recently announced it intends to modulate at 9.5%, while the German government had gone for 4.5% – well below the maximum of 15% DEFRA appears wedded to, Mr Kendall said.
“It is profoundly disappointing and infuriating that this government appears committed to increasing the modulation rate with no idea of how the money will be spent.
“Ministers have totally failed to deliver on their pledge to farmers that such a decision would deliver worthwhile and valuable outcomes. Instead they are operating on a wing and a prayer, seemingly determined to plough ahead. It disregards the opportunity for reviewing the rate upwards in the future once we know how much of the ELS is to be retained by greening and how much demand there will be for the new competitive agri-environment scheme,” Mr Kendall said.
“I urge MPs and ministers to work with us to find a solution to this deeply frustrating and disappointing situation.”
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