COMMON An Introduction AGRICULTURAL to the Farming POLICY Advice Service (CAP) UPDATE Name Name - Date year (click your master to change) OLIVER LEE FARMING ADVICE SERVICE
SECTOR PERFORMANCE Farm Business Income, England 2007/08 to 2012/13 120,000 2012/13 Diversif 100,000 Agri-Env SPS 80,000 60,000 Click to edit Master title style Agriculture 2007/08-2010/11 140,750 40,000 20,000 0 Cereals General Cropping Dairy Grazing Livestock (Lowland) Source: DEFRA / Andersons Grazing Livestock (LFA) Specialist Pigs Specialist Poultry
ORIGINAL CAP PROPOSALS New Basic Payment Scheme (BPS) to start 1 st Jan 2014, New entitlements based on land occupied only for those that claimed SPS in 2011 Click Historic to basis edit (Wales Master & title Scot) style to go over 5 years EU-wide Greening measures - crop rotation; retention of permanent pasture; ecological focus areas Tops-ups Young Farmers, Small Farmers, Areas with Natural Constraints, Coupled payments Capping BPS above 150,000; nothing beyond 300,000 Active farmer test for non-farming businesses
THE EU BUDGET CAP reform taking place in shadow of EU Budget setting Multi-Annual Financial Framework (MFF) for 2014-20 9% cut in overall CAP budget. Equal in Pillar 1 and 2 Click Share to for edit UK not Master yet clear title style 2007-2013 2014-2020 Commission 2014-2020 Agreed bn 0 200 400 600 800 1000 Source: EU Institutions / Andersons Pillar1 (SPS) Pillar 2 (Rural Dev.)* Cohesion All Other Outside MFF * includes fisheries
PROCESS AND TIMINGS EU Commission Conciliation Click to edit Master title style Proposals European Parliament Council of Ministers Position EU Comms n Agreement Implementing Regs. Approval Member States Consultation Farming Industry Computer systems, forms, guidance books Oct 2011 Mar 2013? June 2013? Autumn 2013 Winter 2013/14 Summer 2014 Start date for new Basic Payment Scheme 1 st Jan 2015 (90%)
PILLAR 1 OUTCOMES 100% Some sort of Greening Weakening of original Greening proposals Entitlement roll-over for England no Golden Ticket Click Equivalence to edit Master allowed: title style ELS to satisfy Greening No Greening only loses 30% of BPS 50% Amendments to three current English regions Proposed Active Farmer test 0% Capping of BPS to be introduced in England Use of Top-Up schemes in England
RURAL DEVELOPMENT Squeeze on funding - lower amount in EU budget and UK share not improved - modulation possible but lower (15% v 19%) and no matchfunding to edit requirement Master title style Click New Rural Development Plans needed post-2013 Likely to be a gap in provision through 2014 problems for those with classic schemes or ELS expiring More focus on competitiveness and efficiency (less on environment?) ELS elements to greening end of broad & shallow? Intermediate Level Stewardship? Value for money will be driving principle
300 250 200 BUDGETING SPS (BPS) Estimated English Rates 2011 to 2016 210* 110 + 65 = 175* -17% Click to edit Master title style Alternative per Ha Net 150 100 Lowland England SDA Areas Moorland Lowland England SDA Areas Moorland 50 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Source: Andersons * At 1 = 80p
PRACTICAL POINTS Business restructuring can go ahead (and should ) particularly in light of reduced budget Monitor entitlement outcome and values Click ELS to to be edit closed Master from title 2014 style renew agreements Tenancies (+ Contract Farming Agreements) - agreements need suitable entitlement clauses - flexibility on rents post-2014 if payments fall - Effects on surpluses from contract farming agreement Be ready to react when final agreement becomes clear Not a radical reform tinkering with present system Structural change will be driven by the amount of money
COMMON An Introduction AGRICULTURAL to the Farming POLICY Advice Service (CAP) UPDATE Name Name - Date year (click your master to change) OLIVER LEE FARMING ADVICE SERVICE