Ciolos gives UK hope over rural development money

The UK currently receives only 1.3 per cent of core EU funds available for rural development. This relatively small share is a result of the Government’s historical reluctance to draw down EU rural development money because of the requirement to match fund it from the national coffers.

New criteria to determine the allocation between member states of funds from both Pillar 1, covering direct payments, and Pillar 2, rural development schemes, are likely to be unveiled in July when Commissioner Ciolos publishes formal CAP reform proposals.

The UK Government has been pushing hard in Brussels to get its share of the rural development funding pot increased under the new system.

Speaking to the press at the end of last week’s Oxford Farming Conference, Mr Ciolos indicated the Commission was receptive to the UK’s pleas.

“It may be possible that for the UK, the second pillar will be reinforced,” he said.

He was responding to comments by Defra Secretary Caroline Spelman reiterating  highlighting her desire for CAP reform to be based around transferring funds from Pillar 1 to Pillar 2 to bolster rrural development schemes. This contrasts with Mr Ciolos’ plans to maintain a strong but ‘greener’ Pillar 1.

Tom Hind, the NFU’s head of economics and international affairs, said he hoped the Commissioner’s comments signalled a ‘fairer’ deal for UK farmers when it comes to rural development.

An improved new rural development settlement for the UK would potentially reduce the need for national UK modulation to make up the shortfall to fund rural development schemes, Mr Hind said. Farmers in England, in particular, are currently being hit by high national modulation rates as Defra redirects funds from Single Payments to help finance schemes like Environmental Stewardship.

A Defra spokesperson said: “We would welcome a greater emphasis on the effectiveness of providing public goods and the important role agri-environment schemes have to play.”

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