Simon Haley

Here are further details on some of the changes to be brought about by the introduction of the Basic Payment Scheme (BPS). These are shown in the points below. Obviously this is just a flavour and highlight of the BPS, and is certainly not a full overview of the whole scheme.
 

• Firstly, the following link provides a handy timeline of the implementation of the CAP Reform in England throughout 2014-15. More information here

• Entitlements: on 31st December 2014 any SPS entitlements held will automatically transfer to become BPS entitlements on 1st January 2015. However, if a claimant is holding excess entitlements in 2015 at the point of making a claim on 15th May 2015, i.e. more entitlements than eligible hectares, then these excess entitlements will be confiscated. This is a very important point to be aware of. Any surplus not already traded out in time will effectively become valueless.

The entitlement trading periods for the next 12 months are as follows:

• 15th May 2014 to 19th October 2014 = entitlement trading period

• 20th October 2014 to mid January 2015 = closed period

• Mid January 2015 to 2nd April 2015 = trading activity opens again

 
In terms of the exchange rate for Euro/£ conversion, this will be based on monthly September averages rather than the 30th September spot rate of that year.
 
Under the new EU definitions for BPS, both temporary grass and fallow are to be classified as arable land – this term includes all eligible BPS area excluding permanent grassland and permanent crops.
 

Greening requirements

Greening requirements will comprise elements of crop diversification, protection of permanent pasture, and ecological focus areas. In 2015 and 2016, if these greening requirements are not met, then the 30% greening payment will be lost. However, from 2017, penalties will then be introduced which will reduce the Basic Payment also. At this moment in time though, it is not clear whether there will be an element of proportionality to this penalty. Organic farmers will be exempt.
 

• The minimum BPS claim will raise from 1 ha to 5 ha.

• Milk quotas will come to an end on 31st March 2015.

• The replacement scheme for ELS, provisionally called the New Environmental Land Management Scheme (NELMS), will come into force in 2015 but no new agreements will start until 1st January 2016, and thereafter agreements will have a uniform 1st January application start date. It is expected that again they will be 5 year agreements.

• Of the new Rural Development Programme for England (RDPE) 2014-2020, 87% of funds are being directed towards agri-environment. The remaining 13% of funds are divided as: 5% to Local Enterprise Partnerships (LEPs) to promote rural economic growth; 4% to LEADER initiatives (local community groups); and 4% for competitiveness i.e. similar to the current Rural Skills Framework and which will support training, advice and knowledge transfer. There may also be a small capital grants scheme.

 
More detail is awaited in addition to all of the above points, and upon announcement of further BPS information, we will of course keep you all updated as appropriate.

2014 last year for paper SP5

Remember, 2014 will be the last year in which SPS claimants can complete a paper copy of their SP5 application form. As such, and with the Government’s push to digital by default, there will be a great demand, similar to 2005 with SPS, for advice and assistance from claimants in 2015 with their BPS applications, and their general understanding of the new CAP reform process and its implications upon their farms.

Farmers need to be confident that they will be compliant with the new system. For example, crop plantings this autumn 2014 need to be planned with an appreciation of the BPS regulations in 2015.