More CAP Detail

December 19, 2014 12:00 am

The latest (and last) CAP Update for England has been published by DEFRA.  it can be found at – https://www.gov.uk/government/publications/cap-reform-december-2014-update.  It covers a number of areas which are summarised below.

Active Farmer

This is probably the most important information in the update.  There has been a significant change in the rules.  These relate to the ‘readmission criteria’ for those entities that appear on the negative list.  Two of the categories have changed.  Claimants who are on the negative list can now still claim under the BPS as long as they have at least 36 hectares (89 acres) of eligible land.  

Another of the readmission criteria has changed, now requiring 40% of total business receipts (rather than 15% previously) to be from agriculture.  There is also more detail on the definition of real estate services (basically, as we wrote last month).  Both of these are rendered rather irrelevant by the 36 hectare exemption.  In fact, this makes the whole Active Farmer rules largely irrelevant, because most of those few affected by the rules are likely to have more than 36 hectares under their claim.  DEFRA are unlikely to mind the evisceration of Active Farmer as they never liked the rule in the first place.

In practical terms it doesn’t appear that claimants have to do anything to take advantage of the 36 Ha readmission criteria.  The RPA will simply look at their claim and see if 36 hectares are eligible.  if this threshold is reached then the claimant is in the BPS.

National Reserve

More detail is provided on the National Reserve.  Young Farmers and New Farmers will have to have a ‘certification form’ signed by an accountant or solicitor.  This form (yet to be published) will confirm that they are;

  • in control or head of the agricultural holding
  • the date they took control of the business
  • the date of their birth

Various documents will be required to be produced for the accountant or solicitor to prove this information.

Rural Development Schemes

The Update gives more detail on the Rural Development Programme for England (RDPE).  This includes the new Countryside Stewardship Scheme (CSS), but there is little more detail than we wrote about last month.  One interesting element is Facilitation Funding.  This will be available to put collaborative CSS applications together that cover at least 2,000 hectares and cover at least 4 neighbouring holdings.  Because CSS agreements will not start until 2016, some interim measures for 2015 have been announced;

  • a Water Capital Grants Scheme (like the CSF Grants Scheme) will be available in CSP target areas.  Applications will be open from 2nd March 2015 to 30th April 2015 with work having to be completed and claimed by January 2016
  • Woodland grants (both woodland creation and management) will be open from February.

 Some other elements of the RDPE are also becoming clearer.  A ‘Countryside productivity Scheme’ will open in early 2015.  This looks rather similar to the previous FFIS (Farming and Forestry Improvement Scheme).  In addition reference is made in the Update to the funding that will be available via Local Enterprise Partnerships (LEPs) under the RDPA.  Again, this is stated to be available from ‘early 2015’.

Other Issues

Some other points covered in the Update are;

  • more information on cross-border claims will be sent to claimants early in the New Year
  • further detail on how to make buffer strips distinguishable from fallow is provided

As we have now written on a number of occasions, this all helps our understanding but still does not answer all the questions.  We wrote last month on some of the ‘known unknowns’ that it was hoped that this Update would clarify.  Unfortunately some of these are still outstanding – including the treatment of grass margins, the interaction of hedges and ditches, and changes of cropping during the Crop Diversification ‘cropping period’.  Full BPS Scheme Guidance is promised in the New Year.  It is not yet clear whether this will add anything to what we know already, or if it will just be a consolidation of the Updates that have already been printed.


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