NFU – CAP ‘greening’ will impose 7% set aside

Plans to force farmers to set aside land in order to receive their full single farm payment could lead to higher food prices and possible shortages, the NFU has said.

Leaked copies of the European Commission’s final proposals for reform of the Common Agricultural Policy reveal plans for a compulsory  7% of farmland to be placed into environmental measures as part of the so-called ‘greening’ of Pillar 1 (direct support).

Previously leaked proposals had set that figure at just 5%.

Under the greening plans, farmers who do not comply would only be eligible for 70% of the direct support element of the single payment.

The reform document, which is due to be formally published by European farm minister Dacian Ciolos on 12 October ahead of coming into force in 2014, also confirms plans to cap payments for farmers and landowners who claim more than €150,000.

Under the reform, farmers who claim between €150,000 and €200,000 will see a 20% reduction in their payments, while the figure moves to 40% for amounts from €200,000-250,000.

Those claiming €250,000-300,000 will see a 70% reduction, while a 100% limit will be placed on payments of more than €300,000.

The cuts will not apply to the so-called “greening” element of Pillar 1 payments so that farmers are not put off from taking environmental steps on their land.

They proposals are currently being circulated around European Commission departments who have until 12 September to offer their opinions before they are published next month.

But in a damning critique of the 65-page document, the NFU said the plans were a step backwards and could lead to supply issues and rising food costs.

“We had hoped the Commission would give us a clear indication of how farming should look in the future but these proposals seem confused and complicated with no clear direction,” an NFU Brussels spokesman said.   

“We are struggling to see how they will help farmers face up to the big challenges of today let alone feeding a growing population sustainably in the future.”

The NFU said the CAP should be about helping farmers become more competitive and market orientated, but those objectives would not be achieved by the proposals.

“For example if farmers are forced to set-aside at least 7% of productive land and devote another 5% of their arable land to growing a third crop, as proposed, then we fear Europe will run into supply issues very quickly,” the spokesman added.

“Consumer prices will also rise and our farmers will be less competitive on a global market.

“We have argued from the outset that we want a policy that is simple and market focused but we now have something that looks fiendishly complicated.

“There is potential for the policy to be applied very differently in different countries and regions to leave a situation where the support system, rather than the market, would dictate farmers’ decisions.”

The budget:
The total budget for 2014-20 will be €435.6bn (£382.9bn), which will be split into:

• €317.2bn Pillar 1
• €101.2bn Pillar 2
• €5.1bn research and innovation
• €2.5bn food safety
• €2.8bn food for deprived persons
• €3.9bn crisis fund
• €2.8bn globalisation fund (compensation for effects of trade liberalisation)

Greening:
To be eligible for a green payment, farmers will have to adopt:

• Crop diversification
• Permanent grass
• Ecological focus areas – minimum of 7% (fallow, terraces, landscape features, buffer strips, afforested areas)
• Greening does not apply to organic farmers given ‘the recognised environmental benefit’ delivered

• What do you think about these measures? Have your say in our forum on this topic.

CAP special