Update of CAP negotiations

Taken from NSA Members’ Update 28th June 2013

Political agreement was finally reached on the future CAP after The Commission, The Council, and the EU Parliament came to an agreement this Wednesday the 26th June.  The deal is yet to be formally approved by Council and EU Parliament and there are still some outstanding issues to be dealt with, in particular the moving of funds between Pillar 1 and 2, rates of member state co-financing and the question of capping large payments.
While the deal met wide criticism from many farming and environmental bodies alike there is still a huge amount of unknowns in terms of how CAP will be implemented here in the UK, and there is still much to play for. On one side there is likely to more flexibility but with the UK administration overall set on a course of less direct support and more market reliance the result is likely to be an unlevel playing field, across member states and even between the devolved UK administrations of England, Northern Ireland, Scotland, and Wales who will have greater powers in implementation.  There were some clear positives coming out of the agreement, although again it will be down to implementation as to whether these are seen in UK nations – greater incentives for young entrants, and payments more steered towards active farmers are clearly in the right direction, although the threat of maximum modulation of funds into pillar 2 when co-financing is uncertain and much of this money is lost before it gets anywhere near the farm gate is a serious Political agreement was finally reached on the future CAP after The Commission, The Council, and the EU Parliament came to an agreement this Wednesday the 26th June.  The deal is yet to be formally approved by Council and EU Parliament and there are still some outstanding issues to be dealt with, in particular the moving of funds between Pillar 1 and 2, rates of member state co-financing and the question of capping large payments.

While the deal met wide criticism from many farming and environmental bodies alike there is still a huge amount of unknowns in terms of how CAP will be implemented here in the UK, and there is still much to play for. On one side there is likely to more flexibility but with the UK administration overall set on a course of less direct support and more market reliance the result is likely to be an unlevel playing field, across member states and even between the devolved UK administrations of England, Northern Ireland, Scotland, and Wales who will have greater powers in implementation.  There were some clear positives coming out of the agreement, although again it will be down to implementation as to whether these are seen in UK nations – greater incentives for young entrants, and payments more steered towards active farmers are clearly in the right direction, although the threat of maximum modulation of funds into pillar 2 when co-financing is uncertain and much of this money is lost before it gets anywhere near the farm gate is a serious worry.