Consider crop implications now for new CAP?regime
The final details on CAP reform are yet to be ironed out but farmers should consider the implications now as the new regime is nearer than you think, writes Sarah Reece, associate of Berrys, Shrewsbury.
Although the new basic payment regime won't come in until 2015, the cropping decisions taken in the next few months will set the scene for the 2015 claim year.
The current round of CAP reform has introduced several new elements including "greening" and this will be compulsory for all basic payment claimants.
The greening payment will be 30 per cent of the Pillar 1 direct payments and can only be claimed in full if three greening measures are met: Permanent Grassland; Crop Diversification and Ecological Focus Area.
Hence decisions on the farm rotation taken now are important as seed ordered in spring 2014 will be the crop that appears on the 2015 claim form. So farmers will need to think ahead to ensure they can meet the requirements of greening.
Permanent grassland is defined as land that has been five or more years out of arable rotation and this area must not fall by more than five per cent of the 2012 reference area. Permanent grassland includes grassland that has been reseeded again to grass.
Both Crop Diversification and EFA are focused on "arable land".
Crop Diversification is not required on areas 10 ha (24.71 acres) or less of arable land. Arable land 10 ha (24.71 ac) up to 30 ha (74.13 ac) must include at least two different crops and arable land above 30 ha (74.13 ac) must have at least three crops. The main crop must be no more than 75 per cent of the area.
Winter and spring varieties appear to count as different crops.
We are still awaiting the definition of "arable land" but having attended a number of Central Association of Agricultural Valuers briefings on the subject we think it will include temporary grass, although this isn't clear.
The crop diversification greening measure could present a problem for dairy farmers growing just grass and maize.
A lot of the grass will be temporary leys and may be classified as arable, so these farmers may need to grow a third crop in addition to the grass and maize in order to meet the three-crop rule. Arable farmers who block crop will also have to rethink cropping plans.
There are a couple of crop diversification exemptions:
1. If your arable area is less than 30 ha (74.13 ac) but more than 75 per cent of your eligible agricultural land is permanent grass.
2. If you have more than 50 per cent of arable land that wasn't on your claim form the year before.