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Subsidies threat for thousands of small farmers
EXCLUSIVE: Thousands of the county's most vulnerable farmers are expected to lose out on crucial funding owing to Government cost-cutting measures.
The Department for Environment, Food and Rural Affairs (Defra) is considering cutting off the cash to thousands of small-scale farmers by introducing a new minimum size requirement for farms that can qualify for subsidies worth hundreds of pounds a year to farmers' incomes.
The Government admits that up to 17,000 farmers could lose out on these subsidies, provoking grave concerns from farming leaders.
Currently farmers owning a holding of one hectare or more qualify for the Single Farm Payment (SFP), a European Union subsidy paid to all farmers.
However, Defra is considering raising this to five hectares, and has provoked anger after suggesting that any farmers not wishing to lose out on the money should buy or lease extra land.
Last night, the Countryside Alliance accused the Government of asking the country's most vulnerable farmers to foot the bill for the failures of the controversial body which administers the funding, the Rural Payment Agency (RPA), which was heavily criticised for a series of high-profile blunders over payments to farmers.
The alliance's chief executive, Simon Hart, said: "Even by Defra's standards this suggestion is astonishing.
"It is not rocket science that by making the criteria harder fewer people will qualify and therefore fewer payments will have to be made, but if this suggestion is implemented it will deal a body blow to small farmers.
"I am also concerned that any savings made would not be invested in farming but would be used to pay off the RPA's administration debts. Smallholders shouldn't foot the bill for repaying the RPA's blunders by being excluded from SFP payments.
"The farming community has been paying the price for the RPA's mismanagement for too long, but now to simply cut out the most vulnerable group of claimants shows a contempt for farming that we hoped we would never see."
The consultation document published by Defra states that "a higher minimum area would lead to greater annual administrative savings for the Rural Payments Agency as they would have fewer claims to fully process and inspect".
Tom Hind, head of economics at the National Farmers' Union, said the one hectare limit prevented non-farmers claiming subsidies that they were not entitled to, but said five hectares was too much.
"It almost suggests smaller farms are less valuable," he said.
Dorothy Fairburn, the Yorkshire director of the Country Land and Business Association, said: "It could mean a great number of payment claimants losing out and in any event we will be pressing for the minimum claim size being one hectare."
A Defra spokeswoman said: "The current consultation is seeking views on what the most suitable size limit should be, with a number of options being discussed including one hectare and five hectares."
Main points
n Up to 17,000 farmers could lose out on funding as part of cost-cutting shake-up
n Smaller farmers could be denied subsidies
n Farming leaders say smaller farmers being penalised for Government failures
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Saturday 26 May 2012
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