1383: Does the new “CAP” fit?

This paper is summarised from a briefing by Carl Atkin of KinnAgri Ltd, Does the new “CAP” fit?

Year of Publication2011

The EC proposals for the CAP introduce a new Basic Payment Scheme based on up to 70% of the current Pillar 1 payments. There would be a new ‘Greening Payment” based on the other 30% for farmers who follow enhanced cross compliance for climate and the environment which could include permanent pasture, growing at least 3 arable crops and keeping an ecological focus area of at least 7% of the farmland. There would be additional payments for disadvantaged areas and new entrants. Cross Compliance rules will be simplified. Farms receiving more than £300,000 a year in BPS payments would have their payments capped. There is allowance for capping to be reduced by taking into account costs of salaries paid but this may not include joint venture or contract farming. There are proposals to exclude payments for those with no real agricultural activity

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