Policy paper

2010 to 2015 government policy: Common Agricultural Policy reform

Updated 8 May 2015

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This is a copy of a document that stated a policy of the 2010 to 2015 Conservative and Liberal Democrat coalition government. The previous URL of this page was https://www.gov.uk/government/policies/reforming-the-common-agricultural-policy-to-ensure-a-fair-deal-for-farmers-consumers-and-taxpayers. Current policies can be found at the GOV.UK policies list.

Issue

The EU’s Common Agricultural Policy (CAP) is the system of agricultural subsidies and programmes. It covers farming, environmental measures and rural development, and controls EU agricultural markets. It is the EU’s single largest common policy and accounts for over 40% of the entire EU budget.

Each part of the UK has different arrangements. For information about Scotland, Wales and Northern Ireland, you should contact the relevant agricultural department.

Find out how we are implementing new CAP regulations in England - our guidance and documents collected in one place.

Actions

We will change how we spend CAP funding. Some arrangements will remain the same. We are developing the arrangements for how we will implement the new CAP regulations from 2015.

There will still be 2 ‘pillars’. Pillar 1 for direct payments to farmers and market control measures. Pillar 2 to promote rural development.

We’re improving the way customers (mostly farmers and landowners) can communicate with us and how they’re paid. From July 2014, customers can manage their CAP schemes and report changes online. It will make the process quicker and easier for customers and government.

Background

The EC published its CAP regulatory proposals on 12 October 2011. This was the first CAP reform agreed using the ordinary legislative procedure.

The Commission’s legislative proposals covered the main areas of CAP:

• direct payments
• single Common Market Organisation (sCMO)
• rural development
• financing, management and monitoring

The new European CAP regulations were approved by EU agriculture ministers at the Agriculture and Fisheries Council in December 2013. This includes a CAP transitional regulation.

Once finalised, most of the new CAP regulations will come into force in 2015. This includes direct payments. Transitional arrangements will be put in place, if necessary, for 2014. The new single Common Market Organisation arrangements came into force in January 2014.

The amount of money available under CAP in England is £15 billion over the next 7 years. Of this some £3.5 billion will be invested in schemes to grow the rural economy and improve the environment.

Who we’ve consulted

Over the past 2 years we have been discussing the proposals with English farmers, environmental groups, rural communities, non-governmental organisations and other interested parties.

We have been asking their views on how the proposed reforms might impact people who are affected by the CAP. We have also been seeking their ideas for how we can implement the new CAP regulations in England in ways that are as simple, affordable and effective as possible.

We ran a comprehensive formal public consultation on CAP implementation in England in the autumn of 2013. You can find out more in the summary of the responses to the consultation and government response - originally published in December 2013 and updated with government responses on remaining issues in February (new environmental land management scheme), April (moorland) and June 2014 (greening).

Legislation

The three Statutory Instruments that support the implementation of the new Common Agricultural Policy (CAP) schemes came into force on 1 January 2015.

• Common Agricultural Policy (Competent Authority and Coordinating Body) Regulations 2014 sets out who is responsible within the UK for ensuring the administration of the CAP meets EU regulatory requirements.
• Common Agricultural Policy Basic Payment and Support Schemes (England) Regulations 2014 sets out how certain options for direct payments to farmers will be applied in England.
• Common Agricultural Policy (Control and Enforcement, Cross- Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 sets out how we will administer and enforce the CAP.

There are 4 basic European regulations covering CAP reform.

Progress

We are developing the arrangements for how we will implement the new CAP regulations from 2015.

We have collected our guidance and documents on how we are implementing new CAP regulations in England in one place.

We published some information on the new Rural Development Programme for England in June 2014.

Appendix 1: implementation of the new Common Agricultural Policy (CAP) regulations in England

This was a supporting detail page of the main policy document.

We are developing the arrangements to implement the new Common Agricultural Policy (CAP) regulations. The new schemes will start in 2015.

There will be changes to the schemes under which CAP money is paid, but many things will stay the same. There will still be 2 ‘pillars’. Pillar 1 provides direct payments to farmers. Pillar 2 promotes rural development.

Find out how we are implementing new CAP regulations in England - our guidance and documents collected in one place.

Direct payments

The single farm payment will be replaced by a new direct payment made up of a basic payment, a payment for greening and a further payment for young farmers.

Basic Payment Scheme

We will replace the current Single Payment Scheme (SPS) (the main system through which we pay farmers under CAP) with the Basic Payment Scheme.

We will develop the details of the new scheme throughout 2014 and we will publish information to help claimants make decisions and get ready for the 2015 start dates. We will publish final guidance for customers in early 2015. Applications under the Basic Payment Scheme can be made from early 2015.

Young farmers

From 2015 if you are eligible to be part of the ‘young farmers scheme’, you will receive an additional payment. The payment will be approximately 25% of your payment under the Basic Payments Scheme for each of the first 5 years.

Greening

Greening is the requirement to follow specific environmental farming practices. 30% of the direct payments to farmers will be linked to a new set of 3 greening requirements:

• crop diversification
• maintenance of permanent grassland
• the need to establish Ecological Focus Areas on 5% of arable land

Our latest information on the greening rules was published in our leaflet CAP Reform: August 2014 update (including ‘greening: how it works’).

Rural Development Programme

The new Rural Development Programme will begin on 1 January 2015 and it will support a range of schemes. Over the next 7 years we will invest over £3.5 billion to grow the rural economy and improve the environment under this programme.

We will develop the details of the new schemes throughout 2014 and we will publish guidance by the end of 2014. You can apply for funding under the new schemes in early 2015. In June 2014 we published an outline of the new Rural Development Programme for England.

Environment

The aim of this scheme will be to support measures to restore, preserve and enhance our natural environment.

We will replace the existing Environmental Stewardship and English Woodland Grant schemes with a single new scheme. You will be able to apply if you are a farmer, forester or other land manager (conventional or organic). Information on the new environmental land management scheme (NELMS) is available on the Natural England website.

Productivity

The aim of this scheme will be to support measures to make farming, forestry and land-based businesses more competitive and efficient. See the RDPE network for more information.

We will spend around £140m on:

• supporting innovation to help translate research into practice
• skills and training
• greater co-operation and collaboration between farmers and others in land-based sectors (including agri-food)
• projects which deliver multiple benefits (such as tackling environmental problems alongside improving agricultural output)

Growth

The aim of this scheme will be to support rural economic growth. See the RDPE network for more information.

We will allocate £177 million (5%) to the local enterprise partnerships through this scheme. We will also allocate £140 million (4%) of the funding to LEADER Local Action Groups. These groups aim to improve the quality of life and prosperity of rural communities through locally driven initiatives.

Online services

We’re developing our online services to improve the way customers (mostly farmers) can communicate with us and how they’re paid.

Since July 2014, some existing customers have been able to check and update their registration details online. The new system will continue to be rolled out and developed throughout the year.

Customers will be able to manage their CAP scheme and report changes on one online system. It will make the process quicker and easier both for customers and for government.

Guidance and timetable

You can find out guidance, timetable and other documents in one place about how we are implementing new CAP regulations in England.