Increased EU Coupled Support

The big idea in the Fischler Reforms that brought in the Single Payment in 2005 was the conceptof ‘decoupling’.  This meant support was no longer linked to agricultural production but was simply based on the area farmed.  It was designed to make EU farm policy more compatible with world trade commitments, and also allow farmers’ production decisions to be based on market influences. 

Under the latest round of CAP reform, however, the process of decoupling has taken a step back.  Across the EU coupled support has increased from €2.7bn in 2014 to a budgeted €4.8bn in 2015.  It now accounts for 11.6% of direct payment funds (up from 6.7% in 2014).  A draft European budget shows €1,447m in direct coupled support; the vast majority of this (€884m) is for suckler cow premiums.

Overall just nine Member States, including the UK have chosen to use less than the standard 8% of the National Ceiling for coupled payments.  Only Scotland has chosen to take up any coupling of the UK administrations – for beef and upland sheep.  Eleven Member States have chosen 13% with nine also using some or all of the additional 2% available for protein crops.  The Belgian region of Wallonia is using a massive 21% of its BPS funds for coupled support (again, mostly for suckler beef).  Germany is the only MS not to provide any coupled support in 2015.