CAP reform sparks cropping concerns
The final details on CAP reform are yet to be ironed out but farmers are being urged to consider the implications now as the new regime is nearer than they think.
The warning comes from Sarah Reece at Berrys who says although the new basic payment regime won’t come in until 2015, the cropping decisions taken in the next few months will set the scene for the 2015 claim year.
“The current round of CAP reform has introduced several new elements including ‘greening ‘ and this will be compulsory for all basic payment claimants,” she explained.
“The greening payment will be 30 per cent of the Pillar 1 direct payments and can only be claimed in full if three ‘greening’ measures are met – Permanent Grassland, Crop Diversification and Ecological Focus Area.
“The point is that decisions on the farm rotation taken now are important as seed ordered in Spring 2014 will be the crop that appears on the 2015 claim form so farmers will need to think ahead to ensure they can meet the requirements of greening,” she said.
The three default greening requirements:
Permanent grassland
- is defined as land that has been five or more years out of arable rotation and this area must not fall by more than five per cent of the 2012 reference area.
- Permanent grassland includes grassland that has been reseeded again to grass.
Both Crop Diversification and EFA are focused on “arable land”
Crop diversification
- Crop Diversification is not required on areas 10 ha (24.71 acres) or less of arable land.
- Arable land 10 ha (24.71 ac) up to 30 ha (74.13 ac) must include at least two different crops and arable land above 30 ha (74.13 ac) must have at least three crops. The main crop must be no more than 75 per cent of the area.
- Winter and spring varieties appear to count as different crops.
“We are still awaiting the definition of ‘arable land’ and we think it will include temporary grass although this isn’t clear,” Sarah Reece said.
“We have a political deal but we don’t have the legislation and the detail and it’s likely to be spring 2014 before we have this detail.”
Sarah worries that the crop diversification greening measure could present a problem for dairy farmers with just grass and maize.
“A lot of the grass will be temporary leys and may be classified as arable so these farmers may need to grow a third crop in addition to the grass and maize in order to meet the three-crop rule,” she said.
“Arable farmers who block crop will also have to re-think cropping plans,” she said.
There are a couple of crop diversification exemptions:
1 If your arable area is less than 30 ha (74.13 ac) but more than 75 per cent of your eligible agricultural land is permanent grass
2 If you have more than 50 per cent of arable land that wasn’t on your claim form the year before.
Ecological Focus Area (EFA)
- EFA is not required on arable land under 15 ha (37.06 acres)
- Arable land 15 ha (37.06 acres) and above must include five per cent of the arable area managed as an EFA. This could rise to 7 per cent in 2017
- The EFA must be located on the arable area or adjacent to it
- An EFA can be fallow land, landscape features, buffer strips, agro forestry, afforested lands, strips of eligible hectares along forest edges, catch crops, nitrogen-fixing crops etc
- A weighting matrix is proposed with hedges a higher value than, say, fallow land
EFA Exemptions:
1 If 75 per cent of eligible agricultural area is permanent grassland
2 If more than 75 per cent of arable area is used for production of grasses, leguminous crops or is fallow
“What you drill next autumn will be critical if you want to claim all your direct payment,” Sarah said.
“The penalties for not meeting greening are severe. If you don’t meet greening in 2015/216 you will lose 100 per cent of the greening payment, ie, 30 per cent of the direct payment.
“In 2017 the maximum penalty will be 120 per cent of greening rising to 125 per cent in 2018.
“It seems that with these penalties under the revised CAP not going green is not an option,” she said.
Defra is looking at alternatives to these greening requirements to measure steps some farmers are already taking to protect the environment. Organic farming is already exempt from greening and there could be a national certification greening equivalency .
Dual funding is not allowed so it seems farmers won’t be able to claim payment under ELS if they are using the same environmental benefits to claim greening payments.
“We are still waiting the full details and legislation for the new scheme and the details may change but farmers need to be mindful of the political deal as the implementation of this is fast approaching.
“One of the plus points is that UK direct payment money looks almost level in cash terms and UK Rural Development Programme (Pillar 2) money seems cut by 5.5 per cent which is less than some expected and one of the better deals in the EU,” she added.
For further advice contact Sarah Reece at Berrys on 01743 267068 email sarah.reece@berrybros.com
