Common Agricultural Policy reform

By Dawn Chapman

The new Common Agricultural Policy (CAP) will come into force in 2015. The EU agreed the regulations for the new CAP reform in December 2013. Between then and 2015, the EU has agreed a transitional regulation that will continue the existing CAP, until the new CAP comes into force. The regulations have no real surprises in them, with the main reforms still being: the move to the basic payment system including the greening requirements; the active farmer test; the payment for young farmers; the change to the minimum claim size; the reductions for entitlements over €150,000 (£120,000); and modulation between pillars.

Two days after the EU agreed the CAP regulations, DEFRA delivered its response to the ‘CAP Reform: Implementation in England’ consultation, which was launched on 31 October 2013. This document clears up several of the outstanding points from DEFRA’s August 2013 publications on direct payments and rural development, and provides us with some firm decisions on how the new CAP will be implemented. 

The most surprising change came from the announcement in the consultation response that modulation between pillars is set at 12 per cent, not the 15 per cent that was expected. A review of this rate is due to be held in 2016, with DEFRA intending to move to the maximum permitted 15 per cent transfer rate for the final two years of the new CAP period…

Click on the link below to read the rest of the Mills & Reeve briefing.