‘Unrealistic’ for CAP to escape cuts
Farmers should brace themselves for cuts to the CAP budget, industry leaders have warned.
The caution came as EU member states faced calls for cuts of at least €6.8bn to the European Commission’s agricultural spending plan for 2014-20.
Cyprus, which holds the European presidency, suggested the reduction as part of a proposed €50bn in cuts across all headings of the EU’s next Multi-annual Financial Framework (MFF).
Some countries want the budget cuts to go further, with Sweden among member states targeting the CAP for bigger reductions.
But other countries, including France, say agriculture already faces major spending cuts.
Cyprus is proposing a 2% cut to in direct payments and market management under Pillar 1 and a 1.2% cut in rural development spending under Pillar 2.
The suggestion comes ahead of a summit on 22-23 November during which EU leaders will try to hammer out a budget deal.
NFU director of policy Martin Haworth said: “It would be unrealistic for us to expect the CAP to be exempt from the austerity measures that are being applied throughout the European Union.
“But whatever the size of the budget, we do expect our government to treat English and Welsh farmers equitably and to ensure that they can compete on a level playing field with the rest of Europe.
Mr Haworth said the NFU had “no opposition” to moving more of the CAP budget towards rural development at a European level.
But it was deeply concerned that the UK government wanted the power to move up to 20% of the money at national level.
“Removing up to 20% of English farmers’ direct payments, when we know that other member states are looking for ways to bolster their farmers’ direct payments through ‘reverse transfers’, would hit our farmers far harder than the proposed EU budget cut.”
Farm leaders reject plan to cut CAP