How to understand CAP Reform #3

In the final part of our Common Agricultural Policy (CAP) reform series, we discuss Greening and its implications for the Basic Payment Scheme (BPS).

Greening is defined as ‘Payment for agricultural practices beneficial for the climate and environment.’

There are three rules when it comes to greening:

1. The area of Permanent Grassland must not fall by more than 5%. This applies when compared to the agricultural area in England.
   
2. Crop Diversification varies depending on how much arable land you have. Active farmers with more than 10 hectares of arable land are required to cultivate at least 2 different crops. If you have 30 hectares or more it is 3 crops. Further exemptions apply, and DEFRA has issues a definition of ‘crops.’
   
3. If more than 15 hectares of arable land are farmed, Ecological Focus Areas are mandatory. This Ecological Focus area must be the equivalent to 5% of your arable land area. There are 5 main EFA options with different weightings.

You can find all the details of the exemptions to these rules on our website.

When it comes to BPS, greening payments are worth 30% of the overall payment.

Greening is a mandatory practice. In 2015 and 2016, failure to comply with these three rules will lead to a loss of all or part of the greening payment within BPS. After 2016, failure to comply will also result in penalties.

Agri-Environment Schemes can count towards CAP greening requirements, but deductions may be made. There are 19 Entry Level Stewardships and 18 Organic Entry Level Stewardships that are affected by double funding.

If you are affected by double funding, there are several options available to you. If you deliver a surplus above the ELS threshold, you may have the ability to offset your payments.

For those affected by double funding, you can continue your ELS payments by amending your agreement or accepting a reduced payment. You can also exit the scheme without penalty if you wish.

The set of conditions known as cross compliance will continue under BPS with four changes:

• The Soil Protection Review will be replaced and simplified
• The ban on hedgerow cutting will be extended to 31^st August
• Management of eligible land not in production (GAEC12) will be removed
• Earth and stone banks will be protected as landscape features.

If you have any questions or want to know more about CAP reform, visit our website.

Missed the last two in the series? Don't worry! Click here for Part 1 and Part 2.