Concerns that divergence between agricultural policies and funding in the UK and EU will give EU farmers a competitive advantage have been consistently highlighted by the FUW for the past five years - and in light of the latest EU CAP reforms, other commentators are now echoing these concerns according to the Farmers Weekly.
As part of a framework that was agreed by policy makers in Brussels on 25th June, EU member states will be given greater flexibility when it comes to supporting farmers under the Common Agricultural Policy (CAP), once it has been enshrined into law.
While the new five-year CAP period commences on 1st January 2023, European Governments will have to submit their own national strategic plans for meeting new CAP objectives by the end of 2021.
As part of this CAP reform, Member states will still be able to pay active farmers with direct payments using £163 billion (around 70%) of the total CAP budget.
However, at least 25% of the direct payments budget - around £41 billion - will be set aside for voluntary ‘eco schemes’, including organic farming, agroecology and pest management.
The remaining 30% of the CAP budget will be for rural development, 35% of which will be set aside for agri-environment schemes.
Other reforms include a 10% redistribution of income support to help smaller producers, 3% of the CAP budget for young farmers through direct support, investment and start-up aid and the option for Member States to introduce a £85,000 cap on direct payments and/or a 15% reduction for payments over £51,000, policies which the FUW has been calling for to be included in the future agricultural scheme in Wales since 2018.
While the CAP budget is beginning to focus on more environmental based payments and rural development, the EU is allowing that transition to happen at a much slower rate while also underpinning food production, smaller farms and young farmers by maintaining a large element of direct payments (70% of the budget) compared with the proposed complete removal of direct payments in England and Wales - hence the concerns over competitive advantages.
The FUW has repeatedly emphasised the importance of maintaining a baseline payment as part of any future Sustainable Farming Scheme in Wales in order to maintain food production levels and protect family farms from unfair competition.