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Analysis by DAERA of the potential impact of new agricultural policy proposals shows that over 20% of farm businesses in NI will not receive an area payment if a new 10ha minimum claim size is applied.
The Department is currently consulting on its proposals for a new regime, likely to kick in from 2024, with the bulk of the money in the early years to be directed at a resilience measure to replace the current basic payment scheme (BPS).
At present, the BPS has a minimum claim size of 3ha, but according to DAERA, farms under 10ha are “likely to have very low levels of agricultural activity”, and therefore “it is questionable whether such farms should receive a resilience payment”.
The majority of these farms have cattle and sheep, although they only hold 3% of the current cattle herd, and 5.6% of the sheep flock
Out of the total 23,861 claimants for BPS, 4,880 would be potentially excluded if a 10ha minimum is applied. The majority of these farms have cattle and sheep, although they only hold 3% of the current cattle herd, and 5.6% of the sheep flock.
There is also a disproportionately high percentage of general cropping farms under 10ha (44%), with DAERA explaining that this could be partly due to the fact that many small farms are only growing grass for sale.
At present, businesses under 10ha receive around £10m per year in BPS, which works out at 3.4% of the total pot of £293m.
Active farmers
As well as a new minimum claim size, the Department has also proposed new active farmer requirements that exclude from the resilience measure anyone who did not have cattle or sheep recorded on APHIS, or at least 3ha of crops, in a historic year or years.
Analysis by DAERA of 2020 claimants indicates that 1,384 businesses may not meet these requirements, although some of these may be already excluded if a minimum claim size is set at 10ha.
Nature package
While small farms under 10ha, and landowners, might not be able to claim resilience payments, they will be able to receive support under a Farming for Nature package of measures.
All land managers will be able to apply to this agri-environment scheme, which is expected to be gradually rolled out in future years, and eventually become the main form of farm support.
A minimum claim size of 3ha is proposed.
The Stormont agriculture committee has asked DAERA to consider extending the public consultation period set aside for new agricultural policy proposals.
The consultation was opened on 15 December 2021, running for 8 weeks to 15 February 2022.
At last Thursday’s meeting, committee chair Declan McAleer pointed out that consultations typically last 12 to 16 months, and given the importance of this policy, more time should be sought.
That proposal is unlikely to find favour among farm organisations, which are keen to get as much of a new policy locked down as possible before Stormont dissolves at the end of March, ahead of May elections.
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