Welsh Announce BPS Plan

Deputy Food and Farming Minister, Rebecca Evans, has announced the Welsh Government’s BPS plans.  A flat rate system will be introduced by 2019, in five equalsteps.  A Redistributive Payment will apply to the first 54 hectares (133 acres) of any claim.  Indicative payments can be found in Annex B of the original consultation document http://gov.wales/docs/drah/consultation/150331-basic-payment-scheme-proposals-en.pdf.  This estimates a flat rate of €124 per hectare on all land with the first 54 hectares receiving an additional €119 per hectare. 

The effect of the Redistributive Payment will means that those with claims under 125 Ha (309 acres) will gain, and those above this threshold will lose out.  The Welsh Government states that around 67% of farms will gain under this system compared to a flat rate.  Due to the move to a single regional rate the biggest winners overall will be large hill farmers.  Those that are set to lose out are large lowland producers with high historic payments (such as beef and dairy farmers).  The result of the consultation was fairly predictable given the way it was written.  We are somewhat surprised that there was not a bigger outcry from commercial lowland farmerswhen the consultation was launched, and also now that a decision has been made.  Perhaps the full implication of the proposals was slow to hit home.  However, it seems that there may be (another) Judicial Review launched into the proposed system.

Concerns also arise over the implementation.  The decision now requires EU approval (assuming the plans are ruled legal) and part payments remain on the agenda.  It could be the latter part of the payment window  or even after, before full payments are made. If full payments are not made until after the payment window Wales will face EU disallowance fines.