SFP highs and lows predicted

DEFRA HAS identified which parts of the country will be the winners and which the losers as a result of England‘s single farm payment system.

Analysis using Farm Business Survey data suggests that by 2012 farms in the East Midlands, north east, south west, West Midlands, Yorks and Humber will have a net position worse than with their historic payments.

But farms in the east, north west and south east will be in a better position.

The general rule is that areas with dairy, mixed and cereal farms will receive less money than with historic payments. Regions with general cropping, horticulture, cattle and sheep farms will gain.

It is thought that by 2012 a quarter of farms could lose more than 20% of their net farm income and 4% lose 100% or more. But another 10% will gain more than 100%.

The analysis, published on Fri (Jun 25), suggests that the average value of land in England is unlikely to be affected by the introduction of the single farm payment.

It also predicts that the SFP is not likely to have a large effect on the general rural economy – although it adds that this is difficult to predict as farmers will be free to spend the SFP as they wish.