Latest active farmer CAP rules will come as an 'enormous relief' to many

The latest rules covering the ability of genuine farmers and growers to claim payments under Basic Payment Scheme from 2015 will come as a 'big relief' to many farmers, according to the NFU.

The RPA have published their last CAP reform countdown leaflet. This gives further detail on various issues of the forthcoming Basic Payment Scheme.

The principal concern of late has been the definition of ‘active farmer’ and the treatment of farm businesses where they have off site property investment and rental income.

This has been causing considerable consternation in the industry as entirely valid and in some cases substantial farming businesses might have been caught by this proposal, particularly where they have diversified.

In the latest release the RPA have stated that any farmer who farms more than 36 hectares of eligible land will be able to claim the Basic Payment as an active farmer irrespective of any other activity.

Contained within the latest CAP leaflet are further details of how the new Active Farmer requirements will operate in England. Active Farmer looks at what non-agricultural activities the farming business is operating, irrespective of the level of farming taking place.

Some of these non-agricultural activities are considered undesirable in the eyes of the EU Commission, but the burden on the industry for many (not all)has been greatly reduced as those farmers and growers with at least 36 hectares of eligible land will now be considered active farmers and be able to receive payments. More details on how this will work in practice are now awaited.

NFU President Meurig Raymond said: “This development is a move in the right direction for us as it reduces the burden on genuine farmers and growers and will come as a big relief to many. However, there are still many businesses that will impacted by the increased burden brought in by these new Active Farmer rules as well as other features of the new CAP schemes. The NFU will be working to reduce the burden on the industry of these rules at the earliest opportunity.

“This change to Active Farmer will also help to lift some of the pressures on the RPA to validate the BPS claims and make timely payments that can be made from December 1 2015 onwards.”

Andrew Bays of BCM, specialists in rural property operating throughout southern England, states: “This will come as an enormous relief to farmers and estate owners who were beginning to get extremely concerned about the potential classification of their businesses as not being active farmers. This announcement greatly simplifies the issue and is entirely fair as it makes clear that bona fide farming businesses over the size limit can continue to claim the Basic Payment irrespective of their other activities.”