Subsidy ruling could benefit farmers

19 October 2000



Subsidy ruling could benefit farmers

By FWi staff

THOUSANDS of producers could benefit from a landmark ruling which says subsidies were wrongly withheld from a farmer who grew grass on set-aside land.

The European Court has ruled that John Cooke of Staffordshire is eligible for set-aside payments for land on which he had planted temporary grass in 1996.

The case was brought by the National Farmers Union after Mr Cooke had unsuccessfully tried to claim subsidies on the land the following year.

Ministry of Agriculture officials had refused to pay Mr Cooke the subsidy, arguing that he had not sown and harvested a recognised arable crop.

But the NFU successfully argued that the grass, intended to be cut and then used for silage, must be regarded as having been cultivated with a view to harvest.

Mr Cooke, who lost 28,000 in payments, could now get compensation. Legal experts at the NFU believe that the ruling could also benefit many other farmers.

Richard Vidal, head of the NFU legal department, described the ruling as a breakthrough, saying other producers had also been excluded from payments.

“The law states quite clearly that there is no provision requiring set-aside land to be planted with specific crops,” he said.

“Mr Cooke and others should now gain well-deserved compensation. The fact that they were initially denied this income has placed a huge pressure on their businesses.”

The court also criticised MAFF for continually imposing penalties despite a European Commission view disagreeing with MAFFs interpretation of the rules.

Mr Vidal said that any producers who believe that they could benefit from the ruling should contact their regional MAFF office as soon as possible.

Producers need to take prompt judicial review action to challenge any final decision by MAFF if they believe their case has not been treated equitably.

Farmers who subsequently require legal advice should contact the NFU Services Call Centre (0870 845 8458).