Doubt cast on prompt direct payments to farmers

Defra secretary Liz Truss has warned that Brussels must relax rules on farm checks if more farmers are to receive their direct payments in early December.

Ms Truss was speaking after a support package to help farmers struggling with low prices was unveiled by the European Commission on Monday (7 September).

See also: Relax subsidy checks to speed up payments, says Truss

The package includes proposals for member states to pay up to 70% of direct payments to farmers from 16 October – provided that the necessary controls have been carried out.

This is six weeks before the usual opening payment date of 1 December – but legislation for the early payment proposal to become reality is still being drafted.

Ms Truss said: “We now need more detail on how these measures will help our farmers in the UK and provide the short-term relief needed.”

She added: “We need a specific commitment from the Commission that Basic Payment Scheme checks can be relaxed so that more farmers can be promptly paid.”

The government is keen to avoid a repeat of the situation which occurred under the last round of the CAP, which saw Brussels impose hefty fines on the UK.

Defra has incurred £642m in financial penalties relating to CAP payments since 2005 – equivalent to £2.70 for every £100 in CAP funds paid out by the UK.

“Disallowance penalties” are imposed by Brussels when it believes member states have failed to comply with requirements to control and administer CAP payments properly.

Poor mapping to verify applications, shortcomings in cross-compliance controls and late payments were the main causes of these penalties under the last CAP (2005-2014) in the UK.

Speaking earlier, Ms Truss said she recognised that farmers across a number of sectors needed help with cashflow problems – as well as with problems paying bills.

“I want to make sure we are able to pay direct payments as promptly as possible,” she told journalists in Brussels after meeting UK farm union leaders.

But Defra would only be able to make prompt payments soon after the payment window opened this winter if Brussels relaxed farm inspection requirements, Ms Truss suggested.

The system of checks needed changing, she said. “At the moment we have to inspect every farmer before we make a single payment,” said Ms Truss.

If this process was relaxed, payments could be made soon after the window opened on 1 December – without Defra facing the prospect of hefty fines if mistakes were made.

NFU president Meurig Raymond said it was unclear from the commission’s announcement how flexible Brussels would allow checks and inspections to be.

This was one of the main barriers to issuing early payments, he said.

Mr Raymond said: “Clearly the main stumbling block is around the flexibility required for checks and inspections so that member states do not run the risk of a disallowance fine.”