CAP Reform Bridging the Gap between the Old and the New Scheme

The European Commission have recently published the details of how the transition from the old scheme in 2013 to the new scheme in 2015 will be dealt with.

The majority of the rules for Single Payment as we know it are likely to continue in the 2014 claim year and the new elements of the scheme will not take effect until 2015.

An option however for 2014 is that member states can transfer, via modulation up to 15% of the funds which pay direct payments (Pillar 1) to fund Rural Development (Pillar 2). There is talk that DEFRA Secretary Owen Paterson is committed to transferring 15% to Pillar 2 in an attempt to rejuvenate the declining Rural Development Funds in the UK. This potentially could mean the UK experience the biggest loss of direct payments (Pillar 1) compared to other member states in 2014.

Simply, this means that there is a possibility direct payments for the 2014 scheme year will be lower, due to the reduction in fund to pay the Single Payment claimants. Decisions are pending as to how much the UK will transfer and confirmation will be made later this year. As soon as more news is announced, the Rostons entitlement trading team will be issuing updates.

Additionally, a review has been requested by the National Farmers’ Union (NFU) to concentrate on how Rural Development will be implemented in light of the funding issues, of which we will again update you of the progress as it occurs.