Unions unite to fight farm payments plan

Farmers in the UK and in other European Union member states received Common Agricultural Policy (CAP) subsidy payments split under different pillars to safeguard investment in rural development whilst also providing farmers with direct payments as a way of the European community directly supporting the productivity of the farming industry.

The CAP is being revised and proposals continue to be under discussion by negotiators from the European Commission, European Parliament and Agriculture Council.

One of the key proposals is to grant member states the freedom to transfer up to 15 per cent from their pillar one fund, which is used for direct payments, into pillar two which funds rural development projects. But farming unions feel reduced direct payments will have a detrimental effect on the ability of farmers to recover from bad harvests caused by bad weather and other such crises.

In a show of unity, the NFU and like-minded organisations in Germany, France, the Netherlands, Belgium, Finland and Denmark have sent a joint declaration to all negotiators from the three EU institutions urging against giving member states unilateral freedom to move money away from direct payments.

NFU President Peter Kendall was in Brussels this week to meet with advisers to Agriculture Commissioner Dacian Ciolo. Mr Kendall said: “The free transfer of money from pillar one to pillar two, which would be at the member state’s discretion, would result in grossly unfair competition between farmers across Europe.

“We could see the UK moving 15 per cent of its pillar one envelope into pillar two while at the same time other member states will be moving money in the other direction.

“To stop this we have joined this coalition to ask for any money transferred from pillar one to pillar two to be match-funded by national co-financing. Only then will governments really be forced to weigh up the value of moving money into pillar two.

“If nothing else the devastating UK winter has proved to us the importance of pillar one payments to farmers. Farmers that have seen their livestock buried alive under snow cannot afford to lose 15 per cent of their direct payments.

“Moreover, they cannot be asked to compete with produce from farmers on the continent who will have retained that money. We need the UK Government to commit to giving us a level playing field so we can compete fairly on the single market.”

Speaking at the NFU’s national conference in February, on the topic of CAP reform, Owen Paterson, the UK’s Environment Secretary, said he was determined to seek a solution that works for farmers, the payment agencies and taxpayers.

CAP policy changes will come into effect after 2014.