New scheme's greening rules set to cause a few headaches
The support scheme for farmers changes on January 1 and what was the Single Farm Payment Scheme becomes the Basic Payment Scheme, writes Mike Taylor.
At first glance the two look very similar with similar sounding rules and requirements. However, looks can be deceiving.
The biggest headache is that farmers are having to make cropping decisions now for a scheme which has had only the vaguest of rules published to date. We have been promised more detail this month, but nothing more has been released at the time of writing.
The new scheme comes with a new computerised system that promises to link all government departments in a systematic approach. It will require all farmers to re-register and the whole thing will be digital by default.
The consequence of the new scheme will be the requirement for "greening" which comes in two forms.
First is crop diversification, which is the requirement for farmers to grow at least three different crops if they farm above a minimum area. This is presumably to discourage mono-cropping and encourage bio-diversity.
The second part is the "ecological focus area" or "EFA". This requires all but the smallest arable farmers to provide environmental benefits in the form of five per cent fallow or an equivalent. It is this part that has had many farmers in a spin as they get to grips with the various "equivalents".
This includes growing green cover crops that have to be ploughed in as a green mulch and the growing of nitrogen fixing crops such as peas and beans. However, different options carry varying weight and there is complexity over interaction with other agri-environmental schemes. The greening part is a fudge, typical of compromise negotiations at EU commissioner level. Parts of Europe wanted a lot more stringent bio-diversity measures. The UK Government wanted a fair deal for farmers and value for money.
There are also some quite quirky qualification requirements. You cannot apply if you are an airport, water company or sports ground but it is OK if you are an energy company claiming on land under your wind turbines. Some genuine farmers will come into difficulty just because they happen to have a cricket pitch or football pitch on their farm or because they supply water from a borehole to a number of adjoining properties.
Unfortunately all of this leads to uncertainty at a time of falling farm incomes. The only advice I can give to farmers and landowners is to seek specialist advice in good time to make sure you have considered all aspects of the new scheme.
Mike Taylor is senior partner of Barbers Rural in Market Drayton and specialises in independent expert valuations of farms and other rural property for dispute resolution.
