The presidents of the Ulster Farmers’ Union (UFU) and the National Farmers’ Union (NFU) Scotland have issued contrasting statements this week, setting out respective arguments around the future allocation of direct payments to farmers.
The immediate issue is how convergence money allocated to the UK in the last CAP budget is paid in 2020 and 2021.
It is not simply about the CAP convergence funds and their allocation
While the money involved is quite small, any change to how it is handed out is important, particularly for farmers in NI.
“It is not simply about the CAP convergence funds and their allocation. It is also about setting a fair and objective precedent for the future,” noted NFU Scotland president Andrew McCornick in his statement this week.
However, the Ulster Farmers’ Union (UFU) wants the current method used to distribute CAP money across the UK to remain the template for future allocations after Brexit.
Historic
The CAP convergence money was worth £190m to the UK over the 2014-2020 period, and was allocated to devolved regions on the same basis as historic CAP payments, a decision which McCornick believes was “fundamentally flawed”.
The reason the UK received this extra money was because it had an average payment per hectare that was below 90% of the EU average of €270/ha.
However, the Scottish point out that this money only came to the UK because of its low payment per hectare (approximately €130/ha).
NI (€330/ha), England (€265/ha) and Wales (€247/ha) have rates within 90% of the EU average.
Beyond 2022, there is, at present, no firm government commitment to maintain overall funding at current levels
Last autumn, Defra Secretary Michael Gove tasked an independent panel, led by Lord Bew, to look at how this convergence funding should be allocated in 2020 and 2021. This effectively is the period after Brexit, up until the end of the current parliament in 2022. Beyond 2022, there is, at present, no firm government commitment to maintain overall funding at current levels.
Distribution
Ultimately, the Scottish want to see a more even distribution of per hectare payments across the UK.
However, the big losers in that would be NI. In response, UFU president Ivor Ferguson has insisted that the best way to measure fairness in budget allocations is to consider agricultural output.
“What needs to be borne in mind is the reason for the average payment being lower in Scotland.
"Upwards of 1m hectares in Scotland is unproductive land, with little, and in some areas no, agricultural activity undertaken,” said Ferguson.
He also suggested that Scotland has the highest direct payments per unit of output from the supported sectors, and pointed to the much higher payments per farm in Scotland. Given that farm businesses there work on larger land areas, payments average approximately £24,000/farm, compared with around £11,000/farm in NI.
“The UFU sees no justification to amend the allocation method used for this convergence money,” concluded Ferguson.
The report of the review panel is expected in the coming weeks.
Read more
NI payments average £11,300 per farm
NI land averages over £10,000/acre
The presidents of the Ulster Farmers’ Union (UFU) and the National Farmers’ Union (NFU) Scotland have issued contrasting statements this week, setting out respective arguments around the future allocation of direct payments to farmers.
The immediate issue is how convergence money allocated to the UK in the last CAP budget is paid in 2020 and 2021.
It is not simply about the CAP convergence funds and their allocation
While the money involved is quite small, any change to how it is handed out is important, particularly for farmers in NI.
“It is not simply about the CAP convergence funds and their allocation. It is also about setting a fair and objective precedent for the future,” noted NFU Scotland president Andrew McCornick in his statement this week.
However, the Ulster Farmers’ Union (UFU) wants the current method used to distribute CAP money across the UK to remain the template for future allocations after Brexit.
Historic
The CAP convergence money was worth £190m to the UK over the 2014-2020 period, and was allocated to devolved regions on the same basis as historic CAP payments, a decision which McCornick believes was “fundamentally flawed”.
The reason the UK received this extra money was because it had an average payment per hectare that was below 90% of the EU average of €270/ha.
However, the Scottish point out that this money only came to the UK because of its low payment per hectare (approximately €130/ha).
NI (€330/ha), England (€265/ha) and Wales (€247/ha) have rates within 90% of the EU average.
Beyond 2022, there is, at present, no firm government commitment to maintain overall funding at current levels
Last autumn, Defra Secretary Michael Gove tasked an independent panel, led by Lord Bew, to look at how this convergence funding should be allocated in 2020 and 2021. This effectively is the period after Brexit, up until the end of the current parliament in 2022. Beyond 2022, there is, at present, no firm government commitment to maintain overall funding at current levels.
Distribution
Ultimately, the Scottish want to see a more even distribution of per hectare payments across the UK.
However, the big losers in that would be NI. In response, UFU president Ivor Ferguson has insisted that the best way to measure fairness in budget allocations is to consider agricultural output.
“What needs to be borne in mind is the reason for the average payment being lower in Scotland.
"Upwards of 1m hectares in Scotland is unproductive land, with little, and in some areas no, agricultural activity undertaken,” said Ferguson.
He also suggested that Scotland has the highest direct payments per unit of output from the supported sectors, and pointed to the much higher payments per farm in Scotland. Given that farm businesses there work on larger land areas, payments average approximately £24,000/farm, compared with around £11,000/farm in NI.
“The UFU sees no justification to amend the allocation method used for this convergence money,” concluded Ferguson.
The report of the review panel is expected in the coming weeks.
Read more
NI payments average £11,300 per farm
NI land averages over £10,000/acre
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