DEFRA Listens To Industry On Minimum SPS Payments

The NFU has commended Defras announcement that it will set a minimum claim threshold for the Single Payment Scheme at one hectare.

At the same time Defra has also announced that:

• It will not seek to introduce an objective farmer test
• And that it will integrate previously coupled protein crop and nut payments into the SPS from 2012, the latest possible date

Commenting on todays announcement NFU President Peter Kendall said: This is a pragmatic, common-sense decision in which Defra has clearly listened to the views of stakeholders. We are particularly pleased that Defra has resisted the temptation to set a higher minimum claim size. We could see no advantages in this; to have gone for a higher threshold would have comprised a minority of smaller claimants for no gain to the rest.

Speaking on the decision to delay integration of protein crop payments to 2012, the NFU said that this was a sensible approach from an administrative perspective. However, it sounded a note of caution about proposals in France to introduce a new aid payment for protein crops from next year.

Mr Kendall said: The proposals that have emerged in France to supplement existing protein crop payments by up to an additional 100/ha are worrying and the NFU will be seeking to ensure that the proposals meet the tests laid out under Article 68 of the CAP Health Check regulation.

As things stand these proposals seem to amount to a serious competitive distortion for UK pea and bean growers and we urge both Defra and the European Commission to monitor developments closely.