News article: Health Check of CAP Reforms

On 20th November 2008, the EU Ministers agreed the Health Check of the 2005 CAP Reforms, which introduced the Single Payment Scheme replacing the old livestock and arable production related subsidies.

Amongst the items are:

• With effect from 1st January 2009, the National Reserve entitlements will be converted into Normal Entitlements
• In 2010 the entitlement usage rules will change from once in three years to once in two years
• Changes in the rules affecting non-agricultural use of SPS land will take effect in 2010
• There may be changes in the minimum claim size rules in 2010
• The EU compulsory modulation will be increased to 10% by 2012, the UK may gain as it is already implementing higher modulation rates using national discretions
• Before 2012 there may be new GAEC requirements for buffer strips alongside watercourses
• Changes to the coefficient affecting where the milk fat content exceeds the reference levels. In the UK this may result in a milk quota increase (by about 1%)

Two announcements affecting Environmental Stewardship schemes:

• DEFRA have announced a review of payment rates to come into effect in 2010. This will coincide with the first renewals of existing ELS
• Natural England announced a change in the approach and balance to HLS by encouraging land owners and farmers to coordinate conservation work over larger areas