Scotland Proposes 9.5% Modulation

The Scottish Government is proposing to levy 9.5% modulation on direct payments from 2014.  This plan is contained in a ‘mini-consultation’ published on the 5^th December.  The administration has calculated that this level of transfer from Pillar 1 (SPS/BPS) to Pillar 2 (Rural Development) will strike a balance between reducing payments to farmers and generating enough funds for a worthwhile Rural Development programme.  The consultation is asking for industry views on this one question – there is some urgency as the rate has to be notified to the EU Commission by the end of this year.  Reading between the lines, this would suggest that the main consultation on CAP reform implementation is going to be delayed – hence the need to consult now on this point.  The document can be found at – http://www.scotland.gov.uk/Resource/0043/00439642.pdf