We are urgently developing research requirements with other European laboratories to make sure we understand and the disease (Schmallenberg) better.Exchange rate key to farm profits
THE exchange rate could be key to farming profitability in the years ahead, said Francis Mordaunt, of Andersons, speaking at the East Midlands Farm Management Association (EMFMA) conference.
But he expected the next two years to be better than 2009.
Mr Mordaunt said future support of the CAP would be determined by the next EU budget period, 2014-20.
EU farm ministers and, for the first time, the EU Parliament would have to agree to the farm support reforms to determine how much money there would be for the CAP, which could lead to difficult negotiations.
However, Mr Mordaunt anticipated the current Single Payment Scheme (SPS) would continue in a recognisable form beyond 2013, but with a similar or lower budget from 2014-2020. This could involve a shift from Pillar 1 (SPS) to Pillar 2 (rural development) and a change in the allocation of Pillar 2.
He said modulation could disappear and there may be more capping of larger businesses.
A rebalancing of the three English regional rates could lead to more money directed a hill farmers and there may be more use made of the national envelopes (top slicing 10 per cent of SPS).
Mr Mordaunt said he expected SPS payments similar to last year’s, £225/hectare (£90/acre), until 2012, but by 2013 he assumed there would be a reduction in UK funds to about £200/ha (£80/acre).
By 2020 larger cuts would be phased in going down to £110/ha (£45/acre) but if the pound fell, payments would be much less.