The purpose of this briefing is to give a single party magdeburg 2014 brief summary of the decisions that Welsh Government (WG) made on the 14th January 2014 with regards to the implementation of direct payments in Wales.
Most decisions will come into force from January 2015. From 2015 a five year transition will begin, introducing a new Basic Payment Scheme (BPS) in place of SPS with an additional payment for ‘greening’.
Payments will only be meine stadt siegen partnersuche ab 50 made to people who are ‘active farmers’. The Welsh Government’s decisions on exactly who is eligible to claim payments will be confirmed later in 2014.
Minimum Claim Size
The Welsh Government will be applying a 5 ha minimum claim limit.
Historical entitlements will be extinguished on 31 December 2014. In 2015 new entitlements will be allocated, one entitlement being awarded for each hectare of land. In order to be eligible for this first allocation of new entitlements a person must have received a SPS payment in 2013 or instead be able to provide evidence, such as receipts or accounts, to prove that they were farming in 2013.
A National Reserve will be established from 2015 as a source of entitlements for persons in particular circumstances. New entrants to farming and young farmers will have priority. The Welsh Government will decide in 2014 the details of eligibility criteria for applications.
Basic Payment Scheme (BPS)
A three land area based model will be used in Wales: Moorland; SDA; DA and lowland combined. Moorland will be restricted to areas at 400 single party bad reichenhall metres or higher within the body of land mapped as having Moorland vegetation in 1992.
The Welsh Government will not know exactly until 2015 how many new entitlements are issued. As a result is not possible for them to make an exact decision on payment rates right now. Instead WG have set nominal payment rate values for the three land regions as indicators of the likely payment rates. Payments will be weighted in the ratio of 1:10:12 between Moorland: SDA; DA/lowland. This ratio might mean single pertama hijau daun payment rates by 2019 in the region of:
Moorland around €20 a hectare;
SDA around €200 a hectare;
DA and Lowland (combined) around €240 a hectare
Transition to area based payments
There will be a 5 year transition period with claimants moving over to a wholly area based system in 2019 in 5 equal steps.
There is an EU mandatory capping level for all BPS claims over €150,000 of 5%. WG has decided to introduce a progressive single frauen brandenburg havel level of additional capping in Wales between €150,000 and €300,000. There will be a 100% cap for payments over €300,000.The Welsh Government will not be deducting the cost of wage related costs prior to calculating the deduction. Funds recovered from capping will be redeployed to the Wales RDP budget.
30% of Pillar 1 payments will be payable for ‘greening’. Wales will be implementing the EC’s default greening proposals based on maintaining permanent grassland, crop diversification and ecological focus areas. Land farmed in accordance with the EC Regulation on Organic Farming is deemed to be automatically green. Further decisions will be made in Spring 2014 on the details of how greening will operate.
The maximum of 15% will be transferred from Pillar 1 to Pillar 2. Pillar transfer will take effect for the 2014 single farm payment scheme.
Small Farmer Scheme
There will be no Small Farmer Scheme in Wales.
Young Farmers Scheme
Up to 2% of the national ceiling will be used to provide young farmers (under 40 years of age) with a top-up on their basic single frauen brandenburg havel payment for up to five years. Further details about eligibility criteria will be published in spring 2014.
Areas of Natural Constraint (ANC)
Wales will not be operating a Pillar 1 ANC scheme.
There will be no coupled support scheme in Wales.
Rural Payments Wales will be contacting farmers in July 2014 with land regions based on current land declarations, any inquiries or subsequent appeals against the classification of land as Moorland will begin at that time. These regions will be applied to the new payment rates for the May 2015 application period.
Wales Rural Development Plan
WG will launch a consultation on the Wales RDP in February.
The full detail on the decisions made by WG can be found on the Welsh Government CAP Reform Webpages.
Last edited: 16:01 on January 15, 2014
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This article needs to be updated. Please update this article to reflect recent events or newly available information. (March 2015)
On 26 June 2003, EU farm ministers adopted a fundamental reform of the (CAP) and introduced a new Single Payment Scheme (or Single Farm Payment, SPS) for direct subsidy payments to landowners.
The system of subsidy applies throughout the according to rules agreed between the member states. However, exact details of implementation and grants vary from country to country within the outline rules. Transitional rules also apply for new member states which joined the EU in 2004 and more recently. States have a choice of whether to introduce the new scheme at once, or to phase it in over a period from 2005–2013. The UK Government decided to be one of the first countries in Europe to introduce the Single Payment Scheme and decided to start to phase it in from 2005. Introduction in the UK was strategically coordinated via, with devolved responsibility to England, Wales, Scotland and Northern Ireland to independently implement the scheme.
The new scheme was intended to change the way the EU supported its farm sector by removing the link between subsidies and production of specific crops. This reform focused on consumers and taxpayers, while giving farmers the freedom to produce what the market wanted. Member States have the choice to maintain a limited link between subsidy and production to avoid abandonment of particular production. Current payments to farmers continue to reflect historic patterns of production for different crops in countries where the scheme has yet to be introduced, or as a proportion of the total payment where the scheme is being introduced over a period of years.
The Single Farm Payment is linked to meeting environmental, public, animal and plant health and animal welfare standards and the need to keep land in good agricultural single frauen brandenburg havel and environmental condition.
It was an intention of the scheme to 'decouple' payments from production. This was in response to criticism from other (WTO) countries (mainly the US), that the EU was unfairly subsidising farmers and providing an unfair competitive advantage. Under the SPS the farmer is no longer paid different amounts according to the crop he produces, but a set amount per hectare of agricultural land maintained in cultivatable condition. The intention is that choice of crop is based purely on market driven forces and not on production based grants. Decoupling of payments has allowed them to be categorised under the so-called for the purpose of WTO negotiations, ensuring the legality and compliance of international obligations.
To gain funds from the SPS the Farmer has to – that is, to farm in an way, with careful use of and fertilisers. The farmer also had to set aside (not farm) 8% of their productive land annually, in addition two metres on the perimeter of each field must be left uncropped to become overgrown. However, the requirement for set aside was suspended for one year in Autumn 2007 following sharp increases in prices for certain crops, and in consideration of the aim to grow more crops for biofuel production.
Another stated goal at the outset was to simplify the existing process including applications. Eleven existing schemes were replaced by the SPS.
Implementation of the payments in England has been impaired by problems at the. Payments under the scheme were intended to be made by around January 2006, but by December 2006 some 2% of claims still remained unsettled. Payments amounted to £1.5 billion distributed amongst 115,000 claimants, though most of the money went to relatively few of the claimants (according to the size of their holdings). Difficulties in implementation included double the number of expected claimants, as rules of the new scheme allowed many more people with relatively small areas of land to claim.
Applications are made annually by completion of the SP5 form, which requires claimants to declare all the land under their control, the land they wish to claim payment on and whether they are subject to Statutory Management Requirements (SMR) or Good Agricultural and Environmental Conditions (GAEC). In February 2008 RPA began accepting electronic applications via third party software. The first application was submitted 27 February 2008 through Single Payment Supervisor by Paul Holliday Software. Following the success of the project to accept electronic applications via third party software RPA took the next logical step and in March 2010 began allowing submissions directly through their own Whole Farm Approach website. There is speculation within the agricultural industry that paper forms will be withdrawn in an attempt to reduce costs.
The scheme replaced eleven previous subsidy schemes which were based on the production of crops and/or livestock e.g. dairy premium and arable area payments scheme. Initially the payments had a bias towards paying producers who historically received the highest subsidies. The payment bias works on a sliding scale with a move away from historic payments towards land based payments with payments in 2012 having no historic element.
Implementation of the Single Payment Scheme in Wales was the responsibility of the Welsh Assembly Government. Payments totaling £250m were paid to more than 98% of eligible farmers between 1 December 2005 and 30 June 2006, including £110m to about 75% of Welsh farmers on the first possible day, which made them amongst the first in Europe to receive the new payment.
The Single Payment Scheme (SPS) rewards farmers for managing their land to minimum ("Cross Compliance") standards for crop production, animal welfare and the environment. Farmers can submit a claim annually by declaring (1) all of the agricultural parcels (fields) on their farm and (2) their payment entitlements for activation. The farmer's declaration of his payment entitlements for activation is the farmer's request for a 'Single Payment'.
The farmer is paid against his declared payment entitlements that are each matched against an eligible hectare of declared land ('activated for payment'). The 'Area Declared' for Single Payment is respective; meaning that it relates to the two factors of (1) declared agricultural parcels and (2) payment entitlements declared for activation.
By way of example:
A farmer holds 102.00 payment entitlements.
The farmer declares all of his agricultural parcels that total exactly 100.00 eligible hectares.
If the farmer declares 102.00 of his payment entitlements for activation, the 'Area Declared' for Single Payment would be 100.00 hectares (the lower of the eligible hectares declared and the payment entitlements declared for activation).
If the farmer declares 98.00 of his payment entitlements for activation, the 'Area Declared' for Single Payment would be 98.00 hectares (the lower of the eligible hectares declared and the payment entitlements declared for activation).
Basic Payment Scheme
Political agreement on CAP reform was reached in 2013. In January 2015, the Single Payment Scheme was replaced by the Basic Payment Scheme (BPS).