CAP reforms would damage UK competitiveness - NFU

Following a trip to Strasbourg to meet with key MEPs involved with the CAP reform process, farming unions have said the greening measures being proposed would 'seriously damage' the competitiveness of UK cereal farmers.

Farming associations including the NFU believe producers' ability to respond to market signals and consumer requirements could be diminished, if the proposals are not considered more carefully.

The proposals are now in the hands of MEPs, who are in the process of making amendments to the Commission plans.

The deadline for MEP amendments to the CAP proposals is July 9.

European Commission plans to oblige farmers to grow at least three different crops and meet various environmental standards, have been largely rejected by the Environment, Food and Rural Affairs Committee (Efra).

The 'Greening the Common Agricultural Policy' (CAP) report suggested the European Commission should reform its plans.

Speaking at the start of this year’s Cereals event, NFU combinable crops board chairman Andrew Watts said that greening threatened the market orientation of the arable sector, potentially requiring farmers to grow inappropriate crops or reduce the productive area of their farm. This contradicts the thrust of previous reforms, which although tough, served to support the sector as it became more market oriented.

"This threat to arable production would be compounded should our own government be given licence to exaggerate distortions in support between English farmers and their neighbours in Europe by persisting with the highest rates of modulation possible”, he said.

"Our calculations show that if the changes Defra is seeking were to be implemented, a German arable farmer could potentially receive a payment more than 50 per cent greater than his English counterpart."

NFU Deputy President Meurig Raymond said the European Parliament was at a crucial stage in the CAP reform process. He met the lead negotiator on Direct Payments, Socialist MEP Luis Capoulas Santos.

"We have reached a critical time with the deadline for amendments coming up next month. The new CAP will affect every farmer’s business and if we are to remain competitive and productive it is important that we are not disadvantaged in the final resolution. That is why the NFU has been at the heart of the debate, doing everything in its powers along every step of the way to influence the policy makers in both Brussels and Westminster" said Raymond.

While CAP reform negotiations continue, the combinable crops sector also faces a number of other key challenges over the coming months.

One of these will be to ensure our grain supply chains deliver the best possible for our farmers and their customers. The NFU has been working with the industry to develop a means for sharing information on grain quickly and thoroughly enough to support management decisions and to provide robust information on provenance.

"For some dedicated supply chains this collaborative approach between processors, merchants, and farmers has already begun to pay off, and we see broadening the theme as a logical step in securing our competitive edge in home markets as we move into the future" said Watts.

Another area of concern for the NFU is crop protection as we begin to see the impact of legislation limit the development of crop protection products in the EU. Mr Watts added: “The pressure on fungicide programmes to protect our crops in a difficult season and the levels of blackgrass currently being seen around the country are timely reminders of our needs to remain focussed on sound agronomic practices as we strive to improve productivity.”

Farm transport is a further area where the NFU has been working to allow farmers to adopt technology widely available to improve farm operating efficiency.

Watts said: “If economies are to be made in our production systems it is imperative that transport is modernised in the same way that harvesting and cultivations have in the past few years. There is a catalogue of challenges facing arable members. Our task is simply to enable them to respond to these challenges by assisting with solutions.”