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British farmers need to keep up to speed on CAP reform

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Farm business advisors at Strutt & Parker have warned UK farmers to continue to be aware of proposed changes to the Common Agricultural Policy (CAP) even as the UK prepares for Brexit.

The firm recently highlighted some of the key proposed changes to the CAP for 2021 to 2027 in a briefing paper published on its website. Amongst the key proposals is ‘greater power for Member States to design their own policies, under both Pillars 1 and 2’ which will see ‘each country producing a ‘CAP Strategic Plan’, which sets out how it will meet nine EU-wide objectives.’

In terms of funding, direct payments will be capped at €100,000 (£87,000) and payments above €60,000 will be subject to regression reductions. Overall the budget for Pillar 1 payments will see an 11 per cent reduction in real terms, while Pillar 2 will see a cut of 27 per cent.

Chair of Strutt & Parker’s Farm Research Group, George Chichester said, “These changes are important to the UK as it is still unclear when a British farming policy will apply from, given major uncertainties remaining in the UK-EU withdrawal negotiations, and so we may have to comply with these rules until our British policy is ready.”

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