Active farmer definition may hit diversification

Farmers in Wales who have diversified into holiday accommodation or recreational activities will have to prove that a third of their business income comes from farming or lose their Pillar 1 direct payment.

Under CAP reform only “active” farmers will be allowed to receive direct support. The definition of active farmers is down to interpretation within each member state and devolved region.

See also: CAP at-a-glance guide for UK regions

Announcing the Welsh government’s definition farm minister Alun Davies said that from January 2015, farmers who were unable to prove that a third of their receipts come from a farming activity would not get a direct payment.

Mr Davies said the definition was fair as it would encourage claimants to either work the land themselves or to rent the land to someone who would.

And he went further: “When entitlements are allocated Rural Payments Wales will be taking the approach that where more than one person wishes to claim on the same parcel of land the person who can prove they are undertaking the farming activity and has the land at their disposal will be granted the entitlements.”

“Put simply, how realistic is it to expect farmers to consider future diversification projects when they place the Pillar 1 payment in jeopardy.”
Karen Anthony

According to his statement, for farming activity not to be deemed insignificant, “a person would have to evidence that one third or more of their total receipts are from agricultural activities.”

But CLA Cymru said the approach would unfairly penalise farmers who had diversified.

Its policy director, Karen Anthony, said the Welsh government had adopted a “strict, unimaginative interpretation” of the European Union’s so-called negative list which precludes certain businesses from receiving the payment under the active farmer rule. As a result, the position of many existing claimants was at risk.

“Put simply, how realistic is it to expect farmers to consider future diversification projects when they place the Pillar 1 payment in jeopardy,” she said. “We have members for example who have diversified into equestrian centres or holiday complexes that could now have Pillar 1 payments stopped.

“Although there is an opportunity for readmission to the scheme, this yet again only adds to the bureaucracy that the Welsh government has said it is actively addressing.”