Welsh angered by 15% CAP payment switch
The Welsh government’s decision to cut single farm payments by the maximum permitted modulation rate of 15% has angered the farming industry in Wales.
Brussels allows governments to switch up to 15% of CAP money from farmers’ direct support payments (Pillar 1) to fund rural development measures (Pillar 2).
Before the decision both the NFU Cymru and the Farmers’ Union of Wales (FUW) had urged the farming minister to opt for a lower rate or at least phase the introduction of the cut, with a gradual, annual rise to the maximum modulation percentage.
The unions warned farm minister Alun Davies that his decision to go for the full 15% from the outset would put Welsh farmers at a significant competitive disadvantage compared to farmers in the rest of Europe.
NFU Cymru president Ed Bailey said farmers would be “deeply disappointed and angered”.
“By comparison France will see just 3% of funds moved into Pillar 2, Germany 4.5% and Scotland proposes to move 9.5%. With the Welsh government deciding to move the 15% maximum amount of resource allowed by EU rules at the earliest opportunity it will make it far tougher for Welsh farmers to compete in the marketplace against food producers from these countries,” he said.
“While the minister has said that the announcement he has made will result in an extra £286m to support rural activity in Wales, what he fails to mention is that this money is not new money, it is a redeployment of existing resource that has effectively been taken directly off the bottom line of Welsh agriculture.”
Ed Bailey, NFU Cymru president
“While the minister has said that the announcement he has made will result in an extra £286m to support rural activity in Wales, what he fails to mention is that this money is not new money, it is a redeployment of existing resource that has effectively been taken directly off the bottom line of Welsh agriculture.”
The cut in the CAP budget was already expected to have a major impact on direct support to Welsh farmers but the FUW president said maximum modulation would now make things worse.
“The minister had previously indicated that he didn’t want to unduly disrupt the industry in converting from a historic to a flat rate payment system, but we are concerned that today’s announcement could potentially create far more disruption than any payment rate decision,” said Mr Jones.
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