Plan to increase moorland payments 82% under fire
Government plans to increase the payment rate for moorland in England by more than 80% as part of CAP reform need more thought, according to the NFU.
The union has released a 47-page response to DEFRA’s consultation document on the implementation of CAP reform which closed on Thursday (28 November).
The government has proposed that Severely Disadvantaged Area (SDA) rates are raised to the same level as the lowland rate – and the same cash increase applied to moorland payments.
This would mean payments are about €236/ha (£210/ha) for lowland and SDA farmers and €62/ha(£53/ha) for moorland producers.
The current moorland payment is about €34/ha (£29/ha).
In its response, the NFU says it is not opposed to moving money “up the hill” but it does feel an 82.53% uplift in moorland payments would be “disproportionately large”.
“There is support across the organisation for the proposition it would be fair to align the payment rates in lowland and Severely Disadvantaged Areas non moorland categories,” it says.
“However, there is widespread concern that the 82.35% increase to the SDA moorland category… does not appear proportionate without further analysis and evidence of need.”
The document urges the government not to rush into any hasty decisions about the redistribution of direct payments until it has carried out further research on both the impact of the new greening rules and increased modulation rates on different farm types. It also wants to see more details of how future agri-environment schemes will be targeted.
The NFU says if a substantial increase in moorland rates is to be contemplated, it would only be acceptable to the union if a robust agricultural activity test was applied. “The NFU is not convinced this will be achievable; if that is the case there is a severe risk that much of the extra money would leak outside the farming sector.”
It concludes: “Until the impact of all decisions pertaining to the other factors of CAP implementation is clearly understood and the evidence base indicates that there is a need for action, DEFRA should not take an early decision on this matter.”
The consultation response also spells out in detail the NFU’s objections to transferring 15% of Pillar 1 funds (direct payments) to Pillar 2 of the CAP (rural development).
The union has been arguing for several weeks that a 9% transfer rate would be more appropriate.
It points out that while every farmers would “pay in” through modulation, many would not be able to join the agri-environment scheme that will replace ELS and HLS because it will be much more targeted.
On the issue of greening measures, the NFU says that it thinks DEFRA has underestimated the impact that the three crop rule will have on farmers.
This echoes warnings made by the Country Land and Business Association on this issue.
“The NFU has received conservable representations and correspondence from farmers that will be adversely affected by the crop diversification rules.“It will increase costs, reduce efficiency and increase traffic on rural roads.”