CAP Modulation welcomed in England but anger in Wales
The government's decision to modulate the Common Agricultural Policy (CAP) at 12 per cent for the next four years has been welcomed in by farmers in England but in Wales the situation is not so cheery.
The move will help England's farmers and growers to remain competitive, produce more food and maintain the environment.
NFU Deputy President Meurig Raymond said: "I am delighted that Owen Paterson has decided to keep the rate of modulation below the maximum for the next four years along with a Government review to be launched in 2016 to consider the transfer rate from payments in 2018.
"The reduced rate of transfer to the Rural Development budget will mean that £224 million will be retained in the farming sector over the next four years.
"This issue has falsely been presented as a fight between farming and the environment. It is not.
"Even at nine per cent transfer the NFU has demonstrated that we could continue to meet all our on-going commitments to agri-environment programmes and have a surplus to spend on other measures.
"At 12 per cent there will be additional funds available and we will play our full part in determining how these might best be spent."
But there is disappointment and anger in Wales over the Welsh Assembly's decision to introduce a 15 per cent rate.
NFU Cymru President, Ed Bailey said: "This support intended to help farmers cope with the volatility of the marketplace, to deliver food security and to ensure the highest production standards will be slashed in Wales by more than many of our major competitors on UK and EU food markets.
"France will see three per cent of funds moved into Pillar 2, Germany 4.5 per cent and Scotland proposes to move 9.5 per cent. With Welsh Government deciding to move the 15 per cent maximum amount of resource allowed by EU rules at the earliest opportunity it will make it far tougher for Welsh farmers to compete in the marketplace against food producers from these countries.
"Whilst the Minister has said that the announcement he has made today will result in an extra £286 million to support rural activity in Wales what he fails to mention is that this money is not new money, it is a redeployment of existing resource that has effectively been taken directly off the bottom line of Welsh agriculture."
Meanwhile, environmentalists have criticised the 12 per cent modulation in England. The Campaign to Protect Rural England (CPRE) fears this could result in less maintenance and enhancement of landscape features, such as hedgerows and dry stone walls.
The RSPB said the government had backed down following last-minute pressure from the NFU.
The Wildlife Trusts described the announcement as a missed opportunity to boost investment in wildlife-friendly and progressive farming.
The new system favours large-scale farms but will greatly impact Shropshire's small farms with hill farms being hit hardest. The State of Nature report in May 2013 revealed that 60 per cent of the species studied have declined over recent decades. Iconic upland wildlife species of the Shropshire Hills such as Curlew and Lapwing are examples of disappearing wildlife.
Jan McKelvey, Conservation Manager at Shropshire Wildlife Trust said: "We are deeply disappointed that David Cameron chose not to fund wildlife enhancement schemes to the maximum amount. In Shropshire this will mean less money to farmers who genuinely want to help bring wildlife back from the brink, be it skylarks, wildflower meadows or common but declining species such as thrushes and brown hares."