BPS Update

DEFRA intends to send out its next CAP information leaflet towards the end of October, but in the meantime a few pieces of information have been released which will be of interest to readers.

Dual Use

DEFRA has confirmed dual use will be able to continue once again for 2015 for all existing EnvironmentalStewardship agreements.  The Department has also indicated that those currently in a dual use situation should be allowed to continue until the existing Environmental Stewardship scheme comes to an end. 

To re cap, dual use is where two claimants use the same piece of land to receive support under two separate CAP schemes.  The most common situation is where a Landlord has an Environmental Stewardship Agreement and the Tenant claims for the Single Payment/Basic Payment on the same piece of land.  Looking forward, it had been thought that reform of CAP would be used to bring this arrangement to an end.  However, DEFRA has stated that existing ES agreement holders will be able to continue with the practice, and also that it is ‘minded’ to allow dual use to continue under the new environmental scheme agreements (NELMS).  Further analysis is required before a decision can be confirmed though.  DEFRA recognises that these sorts of situations are quite commonplace in England and that any change would cause a heavy administrative burden on the industry.  It has fought hard with EU auditors to allow the continuation of dual use; the Welsh Assembly does not allow it.  DEFRA has said any decision has to weigh up the risks of receiving a fine from the Commission against the environmental benefits that are being delivered.  DEFRA hopes to have a decision shortly.

Small Claimants

The minimum claim size under the Basic Payment Scheme has risen to 5 hectares in England. Those that have less than 5 hectares of land and/or have less than 5 entitlements will not be able to make a valid claim in 2015.  In addition they will lose their entitlements if they are not triggered in May 2015.  RPA has recently written to about 17,500 claimants who it thinks have less than 5 hectares of eligible land and/or less than 5 entitlements explaining the situation.  This will be based on records they currently hold; land details may have changed since then.  In addition this includes cross border farms where there are less than five hectares in England.  Although the situation regarding cross border farms has not yet been confirmed, it is expected to be based on the whole holding so some of these may have more than 5 Hectares.  Entitlement traders have been expecting a surge in small numbers of entitlements to sell due to the increase in the minimum claim size, but as yet this has not materialised.  Perhaps receiving these letters may start this process.

CAP Information Service (CAP IS)

Further to our article earlier in the month on the new CAP IS, we can now report that the RPA has announced a package of measures to help those who are in need to get online to claim for the new Basic Payment Scheme (BPS) in 2015.  There will not be a paper claim form next year, those applying for the BPS will have to use the CAP IS online service.  RPA has written to 13,000 customers this week who it has identified as those most in need of help.  These people will have always submitted a paper claim, do not use agents and have no ‘digital footprint’ with the RPA i.e have never e-mailed the RPA, or there is no history of unfinished online applications.  The aim of the letters is to find out what stops them from getting online.  This could be their inability to access the internet or technical know-how.  Then the RPA wants to find out what help may be required in the future.   A further 12,000 customers will be contacted in due course, this second group has been identified as having some electronic history with RPA i.e have made contact by e-mail, started an online application, but have never submitted their claim online.

Those who respond to their letter will receive a phone call from RPA who will talk to them about their options.  These could range from enlisting a family member, friend or business colleague, to paying for an agent to help.  The RPA agent should also be able to signpost customers to other sources of help including charities or IT training in the local area.  Above all it is hoped that the process will identify those most in need of extra help.  These people will be offered face-to-face sessions with an RPA representative at their Local Support Centre.  Currently these centres are being trialled at Exeter, Penrith and Carlisle with the aim to roll them out across England in early 2015.

Those claimants that in the past have made their Single Payment Scheme claims via third party software, the main two being Farmplan and Paul Holliday, will not be able to do so in 2015.  Unfortunately it has not been possible to integrate the packages into the new system, meaning for 2015, at least, all claims will have to made via the new CAP IS system.  In addition it is not possible to use the system off-line due to it being based around interactive maps.  DEFRA/RPA are looking into this for future years.  This is very disappointing, no doubt one of the reasons identified by the those who have not submitted an application online will be because of no or very slow broadband facilities.  It had been hoped that agents  would be able to go on farm and complete BPS details off-line for customers where the connection may be slow or unavailable and then link up to the internet back at the office to complete.

Future Updates

The next CAP Leaflet (the third) is due to be released towards the end of October.  It is expected to contain the more detailed management rules for Greening and also clarification surrounding the use of hedgerows for Ecological Focus Areas (EFAs) i.e where you do not own both sides of the hedge, or where one side is adjacent to permanent pasture.  The leaflet is also expected to contain further guidance on National Reserve applications, the Young Farmers Scheme and on the rules for Common Land.  Other areas still requiring clarification include:

• Active Farmer Test – as DEFRA has confirmed that there is no land ‘naturally kept’ in England the only test left is the mandatory negative list .  It is hoped further clarification on how DEFRA is interpreting this is released soon.
• Cross Border Claims – we do know for Greening purposes all land is counted as one holding when calculating Crop Diversification (CD) and EFAs.  Likewise, they are classed as one holding for siting CD and EFAs i.e. if three crops are required on a holding which crosses the border between England and Wales, one crop can be in Wales and the others can all be England.  But further guidance on other issues for those with cross border farms will be sent to claimants in November.