Horse paddocks get SFP

In the long run it is going to be difficult to justify a Single Farm Payment (SFP) model that is based on historical receipts. This model originated in the generous compensation given to cereal farmers for cuts in intervention payments in the 1992 MacSharry reforms. There will be a shift to a regional model with a flat rate payment per hectare in each region. This is already under way in England, Finland and Germany and all the new member states have a flat rate payment system.… Read the rest

UK data on distribution of farm payments

The UK Department for Environment, Food and Rural Affairs (DEFRA) Agricultural Change and Environment Observatory recently published a statistical analysis of the breakdown of the Single Farm Payment (SFP) in England, one of the four regions for the purposes of administering the SFP scheme in the UK. The report analyses 2005 payments, with some historical comparison with the distibution of payments in previous years. One of the findings is that average payment rates per hectare are related more to farm type than to farm size. Apart from the very smallest farm size group (holdings with between 0 and 0.5 Standard Labour Requirements), the average payment per hectare for all remaining farm sizes varies minimally between £187 and £197/hectare.… Read the rest

Why farm subsidies are bad for young farmers

Today, in Brussels, the Commission is hosting a special day for European young farmers. The day is being billed as part of the consultation in the run-up to the CAP health check, after which this blog is named. What is unlikely to be discussed at the meeting are the very real reasons why the current system of farm subsidies are overwhelmingly bad for young farmers and new farmers seeking to make a start in agriculture in the European Union.… Read the rest

69 Ways to Reform the CAP

Analyses of the contents of the Commission’s Health Check Communication have heightened in recent days with the content of the leaked draft document reported in the agriculture press. Of particular interest from an environmental perspective, is the resurgence of the little applied Article 69. This article is housed within the current CAP legislation, Regulation 1782/2003, and allows a Member State to skim off up to ten per cent of the monies to be directed at one sector and provide an additional payment that is targeted at the ‘protection or enhancement of the environment’, or for ‘improving the quality and marketing of agricultural products’.… Read the rest

New market develops in farm subsidies

Given that milk quota has been actively traded in the UK, producing so-called ‘sofa milkers’, it should come as no surprise that Single Farm Payments are now being bought and sold. Agricultural brokers WebbPaton did fifteen deals in one day recently. The market has been described as ‘ferocious’ with rights to subsidies ‘flying off the shelf’. There’s an element of risk, but an investor could receive one-third of the original investment back each year.… Read the rest