Brussels’ plans to slash CAP budget revealed

Farmers face big cuts in Single Payments as this reduced farm budget will be increasingly allocated towards the environment and tackling climate change. Brussels officials are also planning to hand more control of Common Agricultural Policy (CAP) spending to member states, a move industry figures fear could ‘seriously disadvantage’ UK farmers.

The draft document outlines the need for ‘root and branch reform’ of the EU budget, ahead of a formal report later this year.

Agriculture currently accounts for more than 40 per cent of the €129 billion (£115bn) budget and the document notes the share of direct agricultural payments falling.

But it says there must be a ‘further significant reduction’ in agriculture’s share in order to ‘free up spending for new EU priorities’.

The document suggests the ‘main elements of the Single Payment Scheme should be maintained’. It says, however, payments should no longer be based on historic production levels, as they are currently in Scotland and Wales.

It adds support should increasingly focus on ‘environmental services, sustainable farming practices or improving the countryside’, which would involve reducing direct payments and further enhancing ‘pillar two’ of the CAP, rural development funding, via increased compulsory modulation.

There is also a radical suggestion to introduce a ‘third pillar’ of the CAP devoted to tackling climate change.

But arguably the most controversial element of the document is the suggestion that ‘larger responsibility’ for CAP spending could be ‘assigned to member states, with direct aids ‘co-financed by national contributions’.

The document sparked concern among UK farming unions. Farmers Union of Wales president Gareth Vaughan said it was ‘ludicrous’ to talk about cutting the CAP budget while simultaneously seeking to address issues such as energy and climate change and prosperity.

“The risks we now face in terms of food security and climate change, coupled with the challenges of reducing greenhouse gas emissions, means any threat to the CAP budget represents a threat to every EU citizen,” he said.

NFU head of economics and international affairs Tom Hind welcomed the recognition of the need to continue the SPS, but said the suggestion the CAP should be partially nationalised ‘fills us with dread’.

He said it would make it a lottery as to how much each member state contributes, with UK farmers likely to be disadvantaged. “We are absolutely clear on the need to defend the common policy,” he said.

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