‘Groundswell of farmers oppose 15% CAP modulation’

Farming unions are calling on farmers to lobby their MPs in a final push to persuade the government to rethink its CAP budget decision.
The union says there is a “groundswell of opinion” among farmers in England that cutting farm subsidies by 15% to transfer the money into green schemes would severely disadvantage English farmers.
DEFRA says it is “minded” to transfer the maximum allowable rate of 15% from direct payments (Pillar 1) into rural development schemes (Pillar 2).
But elsewhere in Europe, most countries have announced plans for a much lower inter-pillar transfer rate.
For example, France confirmed on Tuesday (17 December) it will transfer just 3% of its direct payments from Pillar 1 to Pillar 2 from 2014 to mainly finance modernisation of farms.
Despite transferring such a small amount of money, its agricultural department said it was satisfied that its farmers would be able to meet their green credentials. Meanwhile, Italy has said it will modulate “zero” funds into Pillar 2.
Scotland is proposing to modulate at 9.5%, but no announcement has been made in Wales. Meanwhile Northern Ireland has said it will transfer only a “small” amount of funds into the green schemes pot.
The NFU has called on the government to adopt a staged approach to modulation, starting at 9%.
NFU deputy president Meurig Raymond said: “It is still important that farmers who can argue strongly against a 15% modulation rate should contact their MPs or MPs’ offices to apply pressure.
“Scotland has come in at 9.5%, Germany 4.5% and France 3%. Anything above 9% would be hugely anti-competitive for our farmers.”
Wildlife groups have been lobbying the government to transfer the maximum allowable rate of 15%. They say more taxpayers’ money should be spent on green schemes to reverse losses in farmland birds.
The RSPB took out a full-page ad in The Times over the weekend, including an image of farmland birds and a warning that “some cuts never heal”.
But Mr Raymond said it was a “myth” that the arguments the NFU was putting forward to maintain the current modulation rate of 9% meant it was “anti-environment”.
“We believe at 9% there will be enough money to carry out all the demands on environmental delivery until 2017,” he added.
“The government should start off at a lower level and then review it after the schemes are introduced.
“Why take the money from the farming community and have no idea about how the money will be spent and at the same time put our farmers at a huge disadvantage.”
In the wake of the horsemeat scandal, Mr Raymond said the British public wants to see more British food produced. He added: “We don’t want our farmers to be hampered on investment.”
CLA president Henry Robinson said: “The government should maintain the current 9% modulation rate from the support pillar to the environmental and rural development pillar of CAP and should only change to 15% in 2017 if it can show that additional funds are needed and these would provide clear benefits.”
DEFRA could announce its final decision as early as Thursday (19 December), but it could delay its announcement until the end of December.
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