CAP Reform - November 2003

It has now been agreed that Britain at least will enter the Single Farm Payment (SFP) Scheme at the earliest permitted date of 1st January 2005. This will include an almost total decoupling of direct farm payments. It is still to be decided whether or not Britain will adopt the flat rate area payment basis (supported by the CLA) or the historical payments basis (supported by the NFU) for the new decoupled payment. Either basis is bound to have various implications and cause concerns which we will be happy to help you through. Both the CLA & NFU have issued consultations to DEFRA and a final decision will be made by the end of November but this may be set back if it is agreed that further consideration is required. There will be no reduction in the extent of decoupling in England in the arable and livestock sectors.

The new dairy premium is unlikely to start in 2004 but it will be based on quota held on 31st March for that year but it is not yet known when it might become decoupled and form part of the new single farm payment but the earliest it could happen would be 2005.

The rules and regulations surrounding the reforms are still to be finalised and there will be a lot to consider in the coming months. It will be virtually impossible to take into account every possible circumstance when writing these rules. If you are unsure how you will be affected then please feel welcome to contact Steven Brown at our Penrith office so that your situation can be considered in good time.

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